Although a portion of domestic small and medium enterprises (SMEs) engaging in R&D and design-oriented industries, such as technology, development of intellectual property rights, green energy, biotechnology and medical treatment, and culture and creativity, exhibit growth potential in R&D, management, and market expansion, it is sometimes difficult for these enterprises to obtain financing from banks due to the lack of financing qualifications. To solve this problem, assist and nurture SMEs with growth potential and increase the number of financing channels available to enterprises, the Ministry of Economic Affairs (the MOEA) has engaged the Small and Medium Enterprise Credit Guarantee Fund of Taiwan (Taiwan SMEG) to provide "Direct Credit Guarantees," which allows enterprises to directly apply to Taiwan SMEG for credit guarantees with guarantee percentages as high as 90%. With the Letter of Commitment issued by Taiwan SMEG, enterprises may apply for credit loans from financial institutions. Ever since the introduction of direct guarantees in 2004, Taiwan SMEG has endeavored to cooperate in the implementation of government industry policies and supporting the development of relevant industries.

Using direct guarantees as a bellwether of financing, Taiwan SMEG works in accordance with the government's green energy policies to realize the goal of nuclear-free homeland.
In the aspect of wind power generation, direct guarantees have aided enterprises in obtaining credit loans worth NT$220 million for constructing offshore wind power demonstration units. As for photovoltaics, in order to help SMEs obtain credit loans for sales of electricity generated from photovoltaic systems, Taiwan SMEG offers suppliers high percentage and speedily granted credit guarantees and has so far processed more than a hundred applications through which it has helped enterprises obtain credit loans of NT$1.68 billion for sales of electricity; these funds have been used to construct solar energy generating systems with a total installed capacity of around 43,884 KW. In terms of biogas power generation, Taiwan SMEG recently assisted Mini-Zenith in obtaining financing for biogas power generation, which will be used to establish biogas power generating units and usage sites in the nation's first joint wastewater treatment facility. It has also actively provided credit guarantees for enterprises operating onshore wind power generation and geothermal power generation. Not only do such projects serve as paradigms for the financial market, Taiwan SMEG is furthermore able to contribute to the improvement of air quality and water pollution, as well as the formation of a resource recycling cycle.

Promotion of the cultural and creative industry
Direct credit guarantees have helped raise funds required for the shooting of 46 Taiwanese films, including highly renowned Taiwanese movies such as Cape No. 7, Warriors of the Rainbow: Seediq Bale, Black & White, Jump Ashin!, KANO, Night Market Hero, Twa-Tiu-Tiann, Where The Wind Settles, The Assassin, Gatao, and Hanky Panky. Direct credit guarantees also contributed to the production of more than 30 TV dramas, such as Crime Scene Investigation Center/i Hero, and PTS programs. In addition to the film and movie industry, Spring Wave Music and Art Festival and other pop music events have also been aided by guarantees. Ten Drum, which begins to show great promise in the performance art category, is now also thriving after receiving direct guarantees and guidance.

Aiding social enterprises
For the purpose of aiding social enterprises, on July 24, 2017, Taiwan SMEG teamed up with the Taipei City Government and Cathay United Bank in launching the "Taipei City Social Enterprise Preferential Loan Project." The project provides direct guarantees not only to social enterprises recommended by Taipei City Government with minimum guarantee percentages of 80%, but also to registered social enterprises with guarantee percentages of at least 80%, thus enabling social enterprises to overcome the challenges of obtaining financing from banking institutions. (Hotline: 0800-699-588)

Supporting enterprise innovation
In accordance with the MOEA's promotion of enhanced enterprise innovation and R&D, Taiwan SMEG launched the "Direct Guarantee Program for Driving Enterprise Innovation" in the latter half of 2017. Through the program, Taiwan SMEG helps enterprises obtain funds required for innovative R&D by providing all SMEs that have been approved for subsidies through the innovative R&D project of the MOEA with guarantee percentages of 95%. Furthermore, Taiwan SMEG has endeavored to help enterprises with intellectual property rights obtain funds needed for operating their business. Direct guarantees have so far assisted more than 200 enterprises with intellectual property rights in obtaining credit loans of NT$4.39 billion.

Direct credit guarantees have to date enabled many enterprises obtain credit loans from financial institutions; some of these enterprises have been named winners of national awards such as the National Award for Outstanding SMEs, industry innovation awards, and innovative R&D awards, while others are even now listed on TWSE and TPEx. Going forward, Taiwan SMEG will continue to fulfill its role as the bellwether in direct guarantees so that more SMEs have the opportunity to grow and thrive.