The coronavirus continually to impact our lives and economic so that Taiwan Government provides several rescue plans to cushion the impact.
In order to help the innovation businesses with the shortage of operation funds, the National Development Fund released the “Guidelines for investing the innovation businesses who are impacted by COVID-19 from National Development Fund, Executive Yuan”. The National Development Fund will inject funds to these innovation businesses through holding preferred stock amounted to six months to one year’s operating fund so as to help the aforesaid businesses to get through treacherous straits.
Who is eligible for the investment ？
- Type of company：
（１）Company limited by share, or
（２）Companies residing outside R.O.C but its substantial operating activities are majority in Taiwan, or
If a company which wants to apply for the fund is not the qualified type listed above, the company is allowed to submit the application first and to change the company type later. However, the company shall complete the change of registration before the National Development Fund remits the fund for preferred stock.
- Definition of innovation business：
（１）The business of a company is with innovation nature, and
（２）The company was established within three years and the capital amount shall be less than NTD 80,000,000. The timing of establishment and amount of capital are not strictly limited.
The impact of the companies – the companies shall provide any supporting documents which can prove the impact, for example, the order was canceled due to COVID-19, etc.
The conditions of the issuance of the preferred stock：
- The Articles of Incorporation shall describe the related arrangement for preferred stock.
- The period of issuance would be set within two years and the dividend is no less than 1.5% on the issued price.
- The price of preferred stock can be referred to the price of the latest increase of capital by cash.
In terms of the business operating fund plan, the National Development Fund will remit the amount of six months to one year’s operating fund through investing by preferred stocks. However, the accumulated investment including investment from other government institutions to the company shall be less than 50% of capital of the said company.
- Application form (published on the website of the National Development Fund)
- The business operating fund plan
From April 6, 2020, to October 5, 2020.