Small and Medium Business Credit Guarantee Fund (SMEG) is the sole non-profit credit guarantee providing organization in Taiwan. The mission of the fund is to help small and medium enterprises in need of capital obtain bank loans, and, hopefully, to promote the domestic economy as well as create the empolyment opportunities. In essence the fund facilitates the implementation of public policy. As the business environment is completely changed, the goals of handling fund were shifted from a financial perspective to a business perspective. The demand for the credit guarantee of the bank loan has substantially increased. In order to meet the growing demand, the effective risk management becomes an important issue. This study examines the overdue ratio and the effect of the risk management from the perspectives of enterprises, banks and the macroeconomics. Findings include the following:(a)some certain affiliated trades and some scales of loans are associated with high overdue ratio; (b) lowering the rate of guarantee can reduce the overdue ratio; (c) there is a significant difference between the characters of the bank and the overdue ratio of SMEG; (d) in macroeconomics, the overdue rate of the SMEG are highly related to the economic indicators such as economic growth rate, money supply, heavy discount rate and unemployment rate. The previous indicators can be the reference indicator of the risk management of SMEG.