This year's Business Start-up Loan for Young Entrepreneurs supported by the Sino-American Fund for Economic and Social Development and various banks will create 5,900 jobs, a Council for Economic Planning and Development (CEPD) official said yesterday.
The official said the project will offer entrepreneurial guidance and low-interest loans to about 1,500 young people to help them start businesses that will generate jobs.
The project is receiving financial support to the tune of NT$1.38 billion (US$41.9 million), with banks and the Sino-American Fund each providing half of the amount.
Over the past decade, the Executive Yuan's Sino-American Fund has provided NT$7.24 billion for the project.
The CEPD and the National Youth Commission reviewed the project a number of times and lowered the loan interest rate to help more young entrepreneurs. The interest rate for the start-up loans had been cut to 3.935 percent, the official said.
The repayment period for unsecured loans is six years, including a one-year grace period and 10 years for secured loans. This includes a three-year grace period.
Young people with work experience or training from organizations recognized by the government are eligible to apply for the loans.
People who apply for unsecured loans may need a credit guarantee of up to 80 percent from the Small and Medium Enterprise Credit Guarantee Fund of Taiwan, the official said.