Financing Programs

FINANCING PROGRAMS
FOR MICRO, SMALL

AND MEDIUM ENTERPRISES

PREFACE

The growing number and significant role of micro, small
and medium enterprises (MSMEs) in spurring national
economic growth prompted the compilation and
publication of this handbook on Financing Programs for
Micro, Small, and Medium Enterprises.

The implementation of micro financing and SME lending
programs by various institutions is generally recognized
as an essential tool in stimulating entrepreneurial
activities. Through this compendium, the Bureau of Micro,
Small and Medium Enterprise Development (BMSMED)
aims to increase the Filipino entrepreneurs awareness on
sources of funding available from government and private
sector institutions for his business, and encourage him to
access these facilities based on the capabilities of his
enterprise. This menu of financial services will hopefully
develop and strengthen the ability of MSMEs to better
manage their operational activities and possibly embolden
them to cater to areas beyond their traditional markets.

This compilation is an initiative of BMSMED under the
Department of Trade and Industry (DTI).

TABLE OF CONTENTS

I. MICRO FINANCING PROGRAMS

Asiatrust Development Bank.....................................................
Salary Loan

3
Department of Agriculture Agricultural Credit Policy
Council (DA-ACPC)
Agri-Fishery and Microfinance Program
Cooperative Bank Agriculture Lending Program
Direct Market Linkage (DML) Program

5
Department of Labor and Employment (DOLE).
Workers Microfinance Program
(KALINGA para sa mga Manggagawa Fund)

7
Department of Social Welfare and Development (DSWD)...
Self-Employment Assistance Kaunlaran (SEA-K) Program

9
Development Bank of the Philippines..
Microfinance Program

11
Foundation for a Sustainable Society, Inc. (FSSI).
Microfinance Eco-Enterprise Program (MEEP)

14
GSIS Family Bank (GFB)..
GSIS Family Bank Microfinance Lending Program

16
Land Bank of the Philippines (LBP)..
Microfinance Program for Microfinance Institutions -
Retailers
Cooperative Lending Program (CLP)

19
National Livelihood Development Corporation (NLDC)...
Livelihood Credit Assistance Program (LCAP)
Livelihood Development Program for Overseas Filipino
Workers (LDPO)

24
Opportunity Microfinance Bank (OMB)
Microfinance 1 (MF 1) Program
Opportunity Ka-Partner Microfinance 2 Program
OMB Well Family Midwife Clinic Partnership Foundation,
Inc. (OMB-WPFI) Special Lending Window

28

Peoples Credit and Finance Corporation (PCFC).
Microfinance Program
Micro-Housing Loan Facility
Micro-Energy Credit Program
MFI Employees Loan Facility

32
Philippine Microenterprise Development Foundation (PMDF).
Balikatan sa Kaunlaran (Partnership for Progress)

40
Small Business Corporation (SB Corporation)......
Micro Lending Through Lead Micro Finance Institutions
(Micro-LEAD)
Micro Lending Through MSME-Oriented Rural Banks
(Micro-LOCAL)
Micro Lending Through Small Micro Finance Providers
(Micro-LEAP)
Wholesale Lending Window for Graduating Micros and BMBEs
42

II. SME FINANCING PROGRAMS

Asiatrust Development Bank.
Term Loan
Loan Line
Check / Receivables Discounting Line
Domestic / Import Letter of Credit / Trust Receipt

52
Department of Science and Technology (DOST).
Small Enterprise Technology Upgrading Program (SET-
UP)

56
Development Bank of the Philippines (DBP).
DBP Lending Program for Small and Medium Enterprises
One Town One Product (OTOP) Credit Facility
OFW i-Net Negosyo Program
Negosyo Credit Program for Government Employees
Puhunang Pangnegosyo Para sa Kawani ng Gobyerno
Organic Agriculture Financing Program
High Value Commercial Crops Financing Program
Cleaner Public Transport Financing Program
DBP Financial Assistance to Overseas Placement Agencies
DBP Support to FAMEs Paglingap ng Bayan sa OFW
Program thru Financial Institution-Conduits
Environmental Development Program
Sustainable Logistics Development Program (SLDP)
Road RORO Terminal System (RRTS)
Sustainable Logistics Development Program (SLDP)
Financing of Cold Chain Projects in the Fishing Industry
58

Export and Industry Bank..
Export Trade Financing
Domestic Trade Financing
Import Trade Financing with Trust Receipt

88
Foundation for a Sustainable Society, Inc. (FSSI)..
Coco Coir Business Integration & Development Program
(COCOBIND)
Sustainable Waste Management Eco-Enterprise Program
(SWEEP)
Sustainable Partnership for Eco-Enterprise Development
(SPEED)
Fund for a Sustainable Civil Society (FSCS)

91
Land Bank of the Philippines (LBP).
Easy Pondong Pang-Asenso (EPPA)
SME Unified Lending Opportunities for National Growth
(SULONG)
Accelerating Change in the Countryside thru Equity
Sharing Strategy (ACCESS)
Retail Countryside Fund (RCF I and II)
ADB Air Pollution Control Credit Facility
Renewable Energy for Wiser and Accelerated Resources
Development (REWARD)
Countryside Loan Fund Programs (CLF I, II, and III)
Countryside Loan Fund Credit Support for the
Environment, Agri-Business, and Small & Medium
Enterprises (CLF-CREAM)
Development Advocacy (DevAd) Program

96
Opportunity Microfinance Bank
SME Lending Program

113
Philippine Business for Social Progress (PBSP).
Small and Medium Enterprise Credit Program (SMEC)

114
Philippine Export-Import Credit Agency (PHILEXIM)..
Short-Term Direct Lending Program (ST-DLP)
Medium and Long-Term Direct Lending Program (MLT-DLP)
(SULONG)
Wholesale Lending Program
Preshipment Export Finance Guarantee (PEFG) and
Postshipment Export Risk Guarantee (PERG) Programs
Term Loan Guarantee Program (TLGP)
General Facility Program
Omnibus Line Under the General Facility Program
Export Credit Insurance Program
115

Philippine National Bank (PNB)
Small Business Loan (SBL)

136
Planters Development Bank..
Revolving Credit Line
Term Loan
Small Biz Loan
Contract to Sell (CTS) Purchase Facility

137
PNOC Energy Development Corporation (PNOC-EDC)..
Decentralized Energy Systems (DES) Project End-Users
Financing Program

140
Small Business Corporation (SB Corporation)
Permanent Working Capital Loans
Transactional Working Capital Loans
Small Working Capital Loans
Fixed Asset Financing
Financing for Start-Up Enterprises
Financing for Information Technology Build-Up
Credit Guarantee Program
SME Wholesale Lending Program

141
Social Security System (SSS)
(SULONG)
The SSS Special Financing Program
Industry Loan Program
Financing Program for Tourism Projects
Special Financing Program for Vocational &Technical
Schools
Hospital Financing Program
SSS Financing Program for Educational Institutions

170
Index 180

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MICRO FINANCING
PROGRAMS

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ASIATRUST DEVELOPMENT BANK
1424 Quezon Avenue, Quezon City
Program Title: SALARY LOAN
Program Objective: To enhance employees benefits program without
extra cost to the company. These are short-term multi-purpose loan
package granted to regular employees of accredited companies subject
to salary deduction scheme.
SL Facility Type:
With Company Guarantee without Co-Maker; or
Without Company Guarantee with Co-Maker.

Eligible Borrowers:
Regularly employed with the Company for at least 2 years;
At least P8,000.00 monthly salary (including fixed allowances)
for the rank and file;
At least P15,000.00 monthly salary (including fixed allowances)
for the officers.

Loan Purpose: Emergency or ready cash

Terms/Requirements:
Loan Amount:
Minimum of P10,000 and maximum of P30,000 for rank and file
employees;
Minimum of P10,000 and maximum of P250,000 for officers.

Note: Monthly amortization should not exceed 30% of net monthly
income and should commence 30 days after loan release.

Loan Release: Loan proceeds to be credited to the employee-
borrowers zero balance ATM account or through Managers Check.

Interest Rate: 0.90% add on rate

Term / Mode of Payment: Payable for 6, 12, 18, 24 months; via
salary deduction to be remitted to the bank via Company Check or to
be debited from the companys mother account in Asiatrust Bank on
a monthly basis.

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Fees / Charges:
Three Hundred Pesos (P300.00) processing fee per application
to be deducted from loan proceeds
Insurance premium to be deducted from loan proceeds. It is
computed as:
[LOAN AMOUNT / P1,000] x P3.00 / 12 x CREDIT TERM
Documentary Stamps for loan amount of P250 Thousand and
above. It is computed as: [LOAN AMOUNT / P200 x P1.00]

Documentary Requirements:

For the Company
Pre-Accreditation Requirements:
o Company Profile
o Latest ITR for 3 years
o Latest Audited Financial Statements for 3 years
o General Info Sheet (latest)
o SSS Number
Post-Accreditation:
o List of Employees / Alpha Listing
o Memorandum of Agreement (MOA)
o SEC papers & Business Registration
o Articles of Incorporation / Partnership and By-Laws

For the Borrower and Co-Borrower
Post-Accreditation:
o Salary Loans Application Form
o Signed Promissory Note and Disclosure Statement
o Certificate of Employment (incorporated in the Application
Form)
o Company ID and any Government ID
o Proof of Billing
o Latest 1 month pay slip
o Most recent ITR (Form 2316)

Contact Details:

Salary Loans Group
Phone (632) 924.5608 924.5711 924.5770
e-mail: smg-slu-avail@asiatrustbank.com

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DEPARTMENT OF AGRICULTURE AGRICULTURAL CREDIT
POLICY COUNCIL
28
th
Floor, One San Miguel Avenue Building, San Miguel Avenue
Ortigas Center, Pasig City
Program Title: AGRI-FISHERY AND MICROFINANCE PROGRAM
(AFMP)

Program Objective:
To create jobs and thereby increase the income of small
agricultural households by providing financing not only for
farming and fishing activities but for other alternative livelihood
projects as well.

Eligible Sub-Borrowers:
Small farmers / fisherfolk

Eligible Projects:
Production, processing, storage, trading
Acquisition of work animals, farm and fishery equipment and machinery
Working capital for long-gestating projects
Construction, acquisition, and repair of facilities
Working capital for agriculture and fisheries graduates
Agribusiness activities which support soil and water
conservation and ecology-enhancing activities
Privately-funded and LGU-funded irrigation systems

Terms and Conditions:
Loan Amount:
AFMP for Rice: Inbred P37,000/ha; Hybrid P42,000/ha
Rural Household Business Financing max of P50,000 per
end-borrower

Interest Rate:
To borrower/institutions (lending conduits) depends on Land
Banks prevailing interest rate rates
To end-borrowers depends on the prevailing terms and
conditions of conduits

Program Title: COOPERATIVE BANK AGRICULTURE LENDING
PROGRAM (CBAP)

Program Objective:
To expand lending of cooperative banks and increase their
outreach to smallholders in the agriculture and fishery sector.

Small farmers / fisherfolk

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Eligible Projects:
Production of hybrid rice and certified seeds
Corn production
Fisheries/aquaculture production and marketing
HVCC/Vegetables production and marketing
Livestock production

Loan Amount:
Unsecured / non-collateralized loans maximum of P30,000
Secured / collateralized maximum of P150,000

Interest Rate:
To end-borrowers (farmers / fisherfolk) 12% to 20% p.a.
(depends on the coop banks lending terms and conditions)

Program Title: DIRECT MARKET LINKAGE (DML) PROGRAM

Program Objectives:
To provide financing assistance in the form of farm inputs to
selected farmer beneficiary groups, cooperatives as well as
consumer groups/associations for production;
To provide institution capability training to improve and
strengthen organizational management and business
development of the farmer trading groups; and,
To adopt contract growing scheme that will buy back the
produce of farmers at market price net of the loans they have
availed.

Eligible Borrowers:
Cooperatives, farmer groups, corporations, associations, corn
farmers

Loan Amount: depends on project type and needs

Interest Rate: 8% per annum

Contact Details:

Agricultural Credit Policy Council
Phone (632) 634.3326 634.3320 to 21
Telefax: (632) 636.3393
URL: www.acpc.gov.ph

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DEPARTMENT OF LABOR AND EMPLOYMENT BUREAU OF
RURAL WORKERS (DOLE-BRW)
9
th
Floor, G.E. Antonino Building, T.M. Kalaw and J . Bocobo Streets
Ermita, Manila
Program Title: WORKERS MICROFINANCE PROGRAM
(KALINGA para sa mga Manggagawa Fund)

Program Objectives:
To alleviate poverty among target workers through micro
entrepreneurial activity;
To support employment generation and promote
entrepreneurship among workers; and
To facilitate the access of workers to credit services to finance
their livelihood and entrepreneurial activities.

Displaced workers in the formal, informal, and public sectors;
Workers with existing micro-enterprise venture needing
expansion; and
Workers with no existing micro-enterprise but:
o Are willing to engage in such endeavor; and,
o Have participated in appropriate livelihood/entrepreneurial
training.

General Criteria:
At least one (1) year residency in the area;
The micro-enterprise should have weekly or daily income;
Must be 18-65 years old;
One member per household can apply;
Not presently employed or has no full-time employment;
No existing loan with a microfinance institution (MFI)/Peoples
Credit and Finance Corporation (PCFC); and
Household monthly income of not more than P10,000 or below
the poverty threshold.

Eligible Sub-Projects:
Handicraft and small manufacturing (e.g. rug making, basket
making, etc.);
Services (e.g. tricycle operation, barber/parlor shop, repair shop, etc.)
Food production/processing (e.g.. meat processing, candy
making, bakery, etc.)
Small agribusiness projects (e.g.. small piggery/poultry,
cutflower production) and production loan for non-traditional
crops (e.g.. vegetables) but should be supplemented by a
business activity which yields a daily income; rice and corn and
other traditional crops are excluded; and
Market vending and small trading (e.g. sari-sari store, fish,
vegetables vending)

-8-
Loan Amount:
1
st
loan not more than P6,000.00
2
nd
loan to subsequent loans upon evaluation of the MFIs,
based on the previous performance of the sub-borrower
A gradual increase may be given subject to the needs of the
borrower and should be supported by a cash flow statement.
The maximum loan amount is P150,000.00.

Interest Rate: Shall be based on market rate

Maturity: Shall be based on the sub-projects cash flow and the sub-
borrowers overall repayment capacity.

Procedure:
Step 1
Worker/Sub-borrower fills up registry form in the Public
Employment Service Offices (PESO) located in all Municipal
and Provincial government offices, DOLE Regional Offices
(ROs) and attached agencies.

Step 2
DOLE ROs and attached agencies or PESO evaluate and refer
application to any PCFC-accredited microfinance institution
(MFI) operating in the area.

Step 3
MFI conducts credit investigation.
Qualified sub-borrower is advised to attend compulsory group
training.
If borrower passes examination, loan is released.

Step 4
DOLE-ROs and attached agencies/PESOs monitor results of
referrals.

Contact Details:

Bureau of Rural Workers
Phone (632) 527.5857 404.3336
Telefax: (632) 527.5858
e-mail: brwmain@smartbroadband.net.ph
URL: www.brw.dole.gov.ph

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DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT
IBP Road, Batasan Hills, Quezon City

Program Title: SELF-EMPLOYMENT ASSISTANCE - KAUNLARAN
(SEA-K) PROGRAM

Program Description: SEA-K Program is a capability building program
of the DSWD and local government units which aims to enhance the
socio-economic skills of poor families through the organization of
community-based associations for entrepreneurial development.

Program Objectives:
To enhance the socio-economic skills of poor families through
the organization of community-based associations for
entrepreneurial development

Program Components:
Social Preparation members are given group session modules
on self-enhancement, volunteerism, leadership, etc. to build
capabilities and confidence towards self-reliance.
Formation of Groups and Association involves the
organization of 5 to 6 groups with five members per group to
form a SEA Kaunlaran Association (SKA). This should have a
total of 25-30 members.
Capital Assistance each SKA can avail of capital seed fund
amounting to a maximum of P150 Thousand (P5,000 per
member), which can jumpstart or sustain micro-enterprises.
This is non-collateral and non-interest.
Savings Mobilization encourages members to save to enable
them to extend financial assistance to their members and
selected community members.
Technical Assistance the DSWD and its partner-agencies
provide technical assistance to enrich the organizational and
entrepreneurial knowledge and skills of individuals to effectively
manage their micro-enterprise and their respective associations.
Access to Other Social Services enables members to access
other social services, where SKAs and its members are trained
on how they can access other services based on the needs
through coordination and linkages with non-government
organizations, peoples organizations, business groups and civil
society.

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Eligible Borrowers:
SEA-K is available to disadvantaged individuals who possess the
following qualities (only 1 member of the family can be a SEA-K
member at any one time):
Must be 16 years old (with adult supervision) and above
With monthly income of not more than P7,432.00 for a family of
6 members
Without access to any formal lending institution
Must be physically and mentally capable of implementing the
micro-enterprise project being proposed
Must be a resident of present community for the last 6 months,
and who intends to stay in his/her community for the next 2
years
With positive work attitude
Must have good relations with his/her family and community
With a good reputation in his/her community
Must be concerned for the welfare of his/her family and
community

Purpose of Loan / Capital Assistance:
Micro-enterprise project
Basic shelter and home improvement

Terms and Requirements:
Loan Amount: Minimum of P5,000 and Maximum of P25,000 per
individual member depending on the project being proposed

Interest Rate: Non-interest loan

Maturity / Repayment: Within 1-2 year period

Collateral: Non-collateral loan

Program Partners / Conduit: City or Municipal Social Welfare
Development Office in the different local government units nationwide

Contact Details:

Mr. Restituto B. Macuto
OIC-Livelihood Office
4F, DSWD, Batasan Pambansa Complex
Constitution Hills, Quezon City
Phone (632) 951.7437
Fax: (632) 951.2806
e-mail: livelihood@dswd.gov.ph

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DEVELOPMENT BANK OF THE PHILIPPINES (DBP)
Head Office: Sen. Gil J . Puyat Avenue, cor. Makati Avenue, Makati City

Program Title: MICROFINANCE PROGRAM

Program Objectives:
To support the governments efforts to alleviate poverty and
attain sustainable economic growth and development in
partnership with microfinance institutions (MFIs).
To hasten the development and growth of MFIs as well as
enhance their efficiency and effectiveness as conduits of
development funds for micro-enterprise development by
providing them direct and convenient access to DBPs credit
and technical assistance specially designed to support their
investment projects and capacity-building programs.
To facilitate the access of micro-investment enterprises and the
entrepreneurial poor to formal credit and banking services, that
include but are not limited to training, market assistance,
business consultancy, whenever possible, to hasten their
growth and development.

Eligible Borrower-MFIs:

Bank MFIs
o Microfinance Banks banks organized primarily for and
granted a license by the BSP as microfinance banks.
o Microfinance-oriented Banks banks which diversified into
microfinance with 50% or more of their total loan portfolio
devoted to microfinance.
o Banks authorized by the BSP to diversify into microfinance
which MF loan portfolio has yet to attain the 50%
requirement to be considered microfinance-oriented banks,
and their existing or proposed principal transaction with the
DBP is microfinance.

Non-Bank MFIs
o Non-government organization (NGO) with successful
microfinance operations for 3 years or more for all types of
MFC loans.
o Non-Government organization (NGO) with successful
microfinance operations for a minimum of one (1) year but
less than three (3) years for capacity-building loans only.
o Cooperatives primarily savings and credit cooperatives
with successful microfinance operation for a minimum of one
year.

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Minimum Risk Acceptance Criteria: MFIs should at least get Rating 3
(Satisfactory) of the NCC Performance Standards to be considered, but
should get a weighted score of at least 75% to avail of the Wholesale
Re-lending and Business Development loans.

However, for Capacity Building loans, MFIs with weighted score of at
least 70% may be considered depending on the result of MFCs due
diligence on the applicant MFIs.

Credit and Technical Assistance Facilities:

MFC shall provide the following:
Credit Facilities and Loan Purpose
o Wholesale loans for re-lending to micro-enterprise/end-users
intended for:
- Fixed asset acquisition and working capital
- Home improvement and housing
- Solar projects
o Direct Loans to MFIs
- Business development loans - intended for capital
expenditures and/or working capital for expansion of
MFIs operations directly related to microfinance
services
- Capacity-building loans - intended for institutional
strengthening (e.g. installation of MIS); professional
development for MFI board, management and staff
Technical Assistance
o Marketing support for microentrepreneurs
o Business development advisory

Terms/Requirements:
Loan Amount: The loan amount will always depend on the project
funding requirements of the MFIs.

Interest Rates:
Wholesale loans: Market rate
Business Development loans: Market rate
Capacity-Building loans: Lower than market rate, but not lower
than cost of funds plus 2% administrative cost

Other Fees: All other fees and taxes such as front-end fee,
commitment fee, GRT, and other fees related to the microfinance
transactions with the Bank shall be for the account of the borrower-
MFIs.

Tenor:
Wholesale Loans Re-lending
o Credit Lines maximum of 1 year
o Term Loans maximum of 3 years, inclusive of one (1) year
grace period.

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Business Development Loans - Maximum of five (5) years,
inclusive of one year grace period.
Capacity-Building Loans - Maximum of 5 years, inclusive of one
(1) year grace period

Equity: For business development and capacity-building loans,
borrower MFIs will be required a minimum equity participation of
20%.

Collateral: Loans may be unsecured or where necessary partially
secured which may be covered by REM, CHM, Stand-by LC, Hold
out on Deposit, and other forms of collateral acceptable to the Bank.

Other Conditions:
Loans extended under this program shall be exempted from the
banks requirement of 100% end-use verification.
MFI borrowers shall execute a deed of undertaking stipulating
that DBP funds shall not be relent for immoral and/or illegal
activities.
Where necessary, MFI applicants may be required the
following:
o Submission of Post-dated checks
o Assignment of Promissory Notes of sub-borrowers
o J oint and Several Signatures (J SS) of principal officers of
MFIs
o Make DBP as major depository bank
MFI-borrower shall submit to DBP reports required by regulatory
authorities for clients with Barangay Micro Business Enterprises
(BMBE) authority.

Performance-Based Incentives:
To encourage MFI borrowers towards quality portfolio and wider market
reach, performance-based incentives will be available.
Higher credit lines for both re-lending and business
development loans
Lower than market interest rates
Longer terms or repayment
Waiver of applicable fees
Combination of any of the above

Delivery System: Loan application may be submitted to the
Microfinance Resource Center (MFC) at the Head Office in Makati or in
any of the Area Management Offices and branches of the Bank.

Contact Details:

SVP Corazon D. Conde
Head, Small & Medium Enterprise Department Phone: 815.1520
SAVP Dulce Q. Raosa Phone: 892.5727
SAVP Adelaida B. Guanzon Phone: 892.2557
AVP Joaquin E. Gelvezon Phone: 894.4927
SM Romeo B. Carandang Phone: 892.2357
Mgr. Paul Eric M. del Rosario Phone: 894.4927

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FOUNDATION FOR A SUSTAINABLE SOCIETY, INC. (FSSI)
Unit E, 46 Samar Avenue corner Eugenio Lopez Street
South Triangle, Quezon City

Program Title: MICROFINANCE ECO-ENTERPRISE PROGRAM
(MEEP)
Program Objectives:
To assist community finance institutions (CFIs) set up windows
of financing schemes for the entrepreneurial poor and micro-
enterprises entering and participating in eco-enterprise
ventures;
To create CFI models that are community oriented,
economically viable and integrate ecological concerns in their
operation; and
To increase the participation of the entrepreneurial poor and
micro-enterprises in the Sustainable Waste Management
Sector, Coco Coir Sub-Sectors and other Eco-Enterprises
through microfinance.

Eligible Borrowers:
Non-government Organizations (NGOs), Peoples
Organizations (POs), Cooperatives, Federations, Unions,
Industry Associations
Rural Banks and Cooperative Banks

Financial Products and Services:
Loan (Term Loan, Credit Line)
Guarantee
Developmental Deposit
Equity/J oint Venture
Terms/Requirements:
Amount: Minimum of P500 Thousand; Maximum of P35.0 Million
(Maximum of P5.0 Million for first-time borrowers)
Interest Rate:
For Loans - prevailing 364-day T-Bill Rates +(5 - Projects EEI
rating) +2% SF +RVAT
For Deposits - prevailing 364-day T-Bill Rates +(5 - Projects
EEI rating) +SF

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Maturity / Repayment: One to two years maturity in monthly,
quarterly, semi-annual, or annual payments (for Cooperatives, Rural
Banks, and NGOs); One to three years maturity in monthly, quarterly,
semi-annual, or annual payments (for Federations and Cooperative
Banks)

Security:
75% Real Estate Mortgage, or
Deed of Assignment
J oint and Several Suretyship (J SS) Agreement

Contact Details:

Ms. Ann Marie Torres
Program Manager
Phone/Fax: (632) 928.8671
Mobile: +639209539852
e-mail: atorres@fssi.com.ph
URL: www.fssi.com.ph

Mr. Amado Reclusado, Jr.
Project Officer
Phone/Fax: (632) 928.8671
Mobile: +639209539879
e-mail: areclusado@fssi.com.ph

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GSIS FAMILY BANK (GFB)
AIC Grande Tower, Garnet Road, Ortigas Center, Pasig City
Program Title: GSIS FAMILY BANK MICROFINANCE LENDING
PROGRAM
Primary Structures: Self-help groups (SHGs) are the primary
structures utilized by this microfinance program. An SHG is composed
of 5 persons who do weekly meetings together with other 5 to 6 SHGs to
form a center.

The SHG/center serves as the venue for collection of credit, savings
deposit generation and the delivery of other services. It also serves as
venue for the monitoring of projects and the expressions of concern for
the members of the program.

Program Objectives:
To introduce an accessible and affordable alternative credit
system for the urban and rural poor for the financing of income-
operating activities.
To encourage the poor to use their time, effort and talents
productively.
To empower women through their involvement in economic
activities and their participation in decision-making process.
To reduce dependency on moneylenders who charge high
interest rates and on dole outs and other forms of political
patronage.

Eligible Borrowers:
At least 18 years old but not more than 65 years old, preferably
women. A student or an employed person cannot become a
borrower since the livelihood activities require full-time
responsibilities.
Must have stayed in the present residence for at least one (1)
year and is known in the community.
Must be of good moral character as attested by the co-
members.
Must be poor, who is engaged in livelihood activities.

Eligible Projects:
As a general rule, the business to be financed has to be existing
for at least a year.
Any micro-enterprise/livelihood activity (trading, services,
vending) that can generate immediate additional income.
Project(s) which is/are within the capacity of the borrower to
manage.
Must be a legal activity.

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Terms/Requirements:
Loan Amount:
First Loan Cycle P6,000.00 to maximum of P10,000.00
Second Loan Cycle Maximum of P15,000.00
Third Loan Cycle Maximum of P20,000.00
Fourth Loan Cycle Maximum of P25,000.00
Fifth Loan Cycle - Maximum of P30,000.00
Sixth Loan Cycle - Maximum of P40,000.00
Seventh Loan Cycle - Maximum of P50,000.00

The general rule in determining the amount of the loan shall be the
requirement and viability of the proposed livelihood project and
acceptance of the responsibility of the group members. Moreover, for
the succeeding loan, the amount shall also be based on: 1)
repayment performance of the borrower, 2) attendance during weekly
meetings, 3) improvement of livelihood activities, 4) improvement of
savings deposits, and 5) relationship with the group.

Interest and Service Charges: interest rate of 3% per month and a
one-time service charge of 2% per cycle.

Individual Savings Requirement: For every loan that is to be
granted, the borrower shall be encouraged to save at least 20% of
the loan availed of at the end of the term. These savings may be pre-
deducted upon the release of the loan or amortized weekly together
with the loan. Withdrawal from this savings shall be discouraged,
except for meritorious reasons and such amount withdrawn must be
returned on or before the end of the term.

Loan Duration: 24 weeks (6 months). The term may be shortened
to 12 weeks if at the start of the training the group agrees to shorten
the loan period, if the cash flow would show the ability of the
borrowers to pay the weekly amortization.

Mode of Payment: Payable in weekly amortizations.

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Security:
As much as possible, no collateral shall be required from the
borrowers except the following:
Secure the signatures of all her co-group and center members
as joint and several co-makers.
A Deed of Assignment of deposit and authority to debit to
authorize the bank to apply the savings against the loan in case
of default.
The borrower must be covered by an accredited insurance
company.
Strictly abide with the policies and guidelines of the
microfinance program.

Offering Memo (Credit Proposal)
Loan Application
Project Proposal
Notarized Loan Contract
Promissory Note
Authority to Debit
Barangay Clearance
Savings Account Opening Forms
Credit Implementation Ticket

Contact Details:

Mr. Armando S. Jose
Head, Microfinance Unit
Phone:(632) 706.0487 to 90 local 155
Fax:(632) 706.0493
e-mail: as_jose@gsisfb.com
URL: http://webmail.gsisfb.com

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LAND BANK OF THE PHILIPPINES (LBP)
1598 M.H. Del Pilar corner Dr. J . Quintos Streets, Malate, Manila

Program Title: MICROFINANCE PROGRAM FOR MICROFINANCE
INSTITUTIONS (MFI) - RETAILERS

Program Objectives:

General:
To support government efforts to alleviate poverty by
empowering the marginalized sector towards economic growth.

Specific:
To expand the Banks outreach to the poor who do not have
access to the formal financial system;
To promote the active participation of microfinance institutions
in the credit delivery system;
To promote savings mobilization of poor households; and
To strengthen partner-MFIs in its microfinance operations and
help deliver capability building support to micro-enterprises.

Mode of Credit Delivery: Landbank will provide funds to MFI-Retailers
which in turn lend the same to micro loan sub-borrowers.

Program Conduits: As wholesaler of funds, the LBP will tap the
following entities as microfinance program conduits.

Cooperatives (Coops)
Countryside Financial Institutions (CFIs)
Non-Government Organizations (NGOs)

Eligibility Requirements for the MFI-Retailers:
Passed the Risk Asset Acceptance Criteria (RAAC) of the bank;
New MFIs and other MFIs without existing credit line / loan with
PCFC or existing MFI clients of PCFC whose credit requirement
is in excess of P100 million;
Duly registered with CDA in case of coops; BSP and SEC in
case of CFIs ; and SEC in case of NGOs;
With at least three (3) consecutive years experience in lending,
one year (most recent) of which is on microfinance operations;
With audited financial statements (FS) for the last three (3)
years (audit conducted by an external auditor);
With capacity to engage in microfinance, as evidenced by the
following:
o Functioning MIS/ loan tracking system (will allow regular
monitoring of microfinance operations as evidenced by
timely generation of basic financial, loans tracking, and aging
reports using Portfolio at Risk {PAR});

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o With savings mobilization program and microfinance
guidelines/ operations manual in place;
o With microfinance business plan for at least three (3) years
as approved by its Board of Directors;
o At least two (2) members of its Board of Directors (BOD) /
officers with one (1) year experience in microfinance and/or
intensive training on microfinance (minimum of 7 days
training) in accredited/ reputable training institution/s;
o With a separate unit to handle microfinance operations;
o At least three (3) full-time and trained microfinance officers/
staff (minimum of 5 days microfinance training in
accredited/reputable training institution/s); and,
o With a continuing staff development/training program on
microfinance.

Credit Facilities Available to Eligible MFIs:
Short Term Loan
o Working Capital
o Rediscounting
Term Loan

Terms/Requirements:
Loan Amount:
Short Term Loan / Term Loan
o For Coops up to 6 times of its networth
o For CFIs not to exceed its AERA
o For NGOs should be equal to the requirement of borrowers
but not to exceed twice its existing loanable funds (exclusive
of borrowings)

Interest Rate:
Short Term Loan 91-day T-bill rate +3% per annum, or 9.5%
per annum, whichever is higher. (Aligned with the SULONG
rate for short-term PNs, which is set every quarter.)
Term Loan 12% +1% service fee per annum

Rediscounting Rate: Up to 85% of the current outstanding
balance of the PNs rediscounted.

Term / Availability:
Short Term Loan One (1) year credit line/Up to 360 days PNs
Term Loan - Up to five (5) years / Maximum of 3 tranches,
but to be availed within one year from the date of signing of loan
agreement.

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Collateral Requirement:

Short Term Loan
o Working Capital - REM or Hold-out on deposit, and/ or
government securities for coops and NGOs with PESO
rating of 70 to less than 80, and CFIs with CAMELS rating of
3 to less than 4.

J SS and Post Dated Checks (PDCs) for coops and NGOs
with PESO rating of at least 80; and CFIs with CAMELS
rating of at least 4.

o Rediscounting - Assignment of sub-PNs, including sub-
borrowers underlying collaterals; Guarantee cover, if any;
J SS of principals; Post Dated Checks (PDCs)

Term Loan - REM or Hold-out on deposit, and/or government
securities.

Contact Details:

Programs Management Department I (PMD I)
Phone: (632) 522.0000 (632) 551.2200
locals 2783; 2300; 2579
Direct Line: (632) 405.7427
Fax: (632) 528-8541/42/43
e-mail: hgbautista@mail.landbank.com / gangeles@mail.landbank.com

Program Title: COOPERATIVE LENDING PROGRAM
Program Objective: To help augment income, generate more economic
activities and transform peoples lives.

Eligible Borrowers:
Agricultural cooperatives small farmers, fisherfolk, and poultry/
livestock raisers.
Non-farmers/credit cooperatives market vendors, employees,
teachers, rural workers, women, etc. - which meet the following
criteria:
o registered with CDA with a minimum of 60 members;
o minimum paid-up share capital of P30,000.00;
o all members should have attended Pre-Membership
Education Seminar;
o core management team composed of qualified full-time
treasurer/cashier and qualified full-time bookkeeper and
manager;

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o with on-going savings mobilization program resulting to an
annual average increase of savings of at least
P500.00/member;
o with on-going capital build-up program resulting in annual
incremental equity equivalent to P500.00 per member;
o with written policies, systems and procedures on
membership management, capital build-up and savings
mobilization, credit, accounting and budgeting, written plans
and programs;
o with duly installed books of accounts;
o at least break-even in its operations;
o must be conducting periodic performance review operations;
o risk asset ratio of not less than 10%; and
o past due ratio of not more than 25% for bank
assisted cooperatives/ newly accessing cooperatives.
o Sub-borrowers individual households, businesses,
and microenterprises.

Loan Purposes:
Agricultural Production Loan (APL) provision of short/medium/
long term loans, depending on the gestation period of the crop/
project, for relending to cooperative members engaged in crop
production, livestock and poultry raising/breeding, fishery, and
aquaculture projects and other agri/aqua-related projects,
including cottage industries which utilize excess farm labor.

Working Capital Loan (WCL) for funding cooperative activities
requiring operating capital for purchase of raw materials,
processing and trading of inputs and/or finished products and
the operation of fixed assets.

Rediscounting Loan (RL) improvement of liquidity and
provision of capital requirements of eligible / accredited lending
agents for funding relending operations using promissory notes
of members of cooperatives.

Fixed Asset Acquisition (FAL) purchase of fixed assets to be
used in the cooperatives operation.

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Terms/Requirements:
Loan Amount:
Depends on the project needs or loan ceilings for traditional and
high-value crops which should not exceed 80% of the project
cost.
For rediscounting maximum of 85% of face value of the sub-
promissory notes (PNs), except for sub-loans under the
Innovative Financing Scheme which have 100% loan value on
sub-promissory notes.
Interest Rate: Prevailing rate at the time of availment.

Maturity / Repayment:
APL/WCL lump sum depending on crop cycle and/or project
cash flow.
RL co-terminus with the maturity dates of batch of sub-
promissory notes rediscounted but not exceeding one year.
FAL equal quarterly, semi-annual or annual amortizations
depending on the financial projections and production cycle of
the project.

Security:
APL
Deed of Assignment of PCIC insurance/guarantee coverage.
Deed of Assignment of Produce.
Deed of Assignment of Sub-borrowers PNs.
WCL and FAL
Real Estate/Chattel Mortgage (REM/CM).
Mortgage on Objects of Financing.
Continuing Mortgage on Stocks.
RL
Deed of Assignment Sub-borrowers PNs including its
underlying collaterals.

Other acceptable collaterals Hold-outs, Assignments, REM, Guarantee
Coverage, J oint and Several Signatures (J SS).

Contact Details:

Programs Management Department (PMD)
Phone: (632) 522.0000 (632) 551.2200 locals 2783, 2307, 2376
Fax: (632) 528-8541/42/43
e-mail: lbp-pmd2@mail.landbank.com

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NATIONAL LIVELIHOOD DEVELOPMENT CORPORATION (NLDC)
4th Floor, Hanston Building, F. Ortigas J r., Road
Ortigas Center, Pasig City 1605

Program Title: LIVELIHOOD CREDIT ASSISTANCE PROGRAM (LCAP)

Program Objective: To provide livelihood and enterprise development
assistance to small farmer beneficiaries in the agrarian reform
communities (ARCs) and members of the marginalized sectors by
providing access to micro credit through accredited NLDC program
partners/conduits, supported by capability building/institutional
development interventions.

Target Clients:
Program Partners/Lending Conduits
o Rural Financial Institutions (RFIs)
o Cooperatives
o Non-Government Organizations (NGOs)
End-Borrowers
o Agrarian reform beneficiaries/small farmers and their
wives/dependents in the ARCs; and,
o Other non-farmer and marginalized households in the ARCs
and Kalahi zones.

Types of Services:
Revolving Credit Line funds for relending to finance the
livelihood project requirements of end-borrowers.
Developmental Loan loan amount shall be to a maximum of
10% of the Conduits total loan outstanding. At least 50% of the
credit line should have been utilized before it can be availed of.
The loan is to be used specifically for the following:
o For the conduct of capability-building/training of staff of the
conduit handling the NLDC livelihood credit program and the
conduct of social preparation activities for the end-
borrowers; and,
o For logistic support expenses as allowed by NLDC and
depending on its assessment of the needs of the client.

Accreditation Criteria for Partners/Conduits:
Registered with the appropriate government entity;
Profitable operations for the last 3 years and interim;
Satisfactory credit record with other creditors; and,
At least 10% leverage CRAR.

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Terms/Requirements:
Loan Amount:
Program Partners
o Revolving Credit Line Depends on the credit evaluation,
program plans and number of target end-borrowers but not
to exceed its total asset base.
o Developmental Loan depends on the needs of the
Program Partner as assessed by NLDC but not to exceed
10% of the approved credit line.
End-Borrowers P3,000 to P50,000.

Interest Rates:
Program Partners
o Revolving Credit Line 9% per annum
o Developmental Loan 4% per annum; loan duration shall
depend on the nature of the soft loan utilization but not to
exceed three (3) years.

Security:
Program Partners
o Continuing Deed of Assignment of end-borrowers
Promissory Notes and their underlying collaterals
o Post-dated Checks
o Chattel or Real Estate Mortgage, if any.
End-Borrowers no collateral

Application Requirements
Accomplished NLDC application forms;
Registration and Incorporation papers;
Board Resolution to borrow;
Audited financial statement for the last 3 years and latest interim
financial statement; and,
Other requirements that may be deemed necessary by NLDC.

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Program Title: LIVELIHOOD DEVELOPMENT PROGRAM FOR
OVERSEAS FILIPINO WORKERS (LDPO)

Program Objective: To help OFWs and their families start or sustain
their own business through access to credit, capability building, market
linkage and other forms of livelihood or entrepreneurial assistance.

Target Clients:
All active and former member-OFWs of the Overseas Workers
Welfare Administration (OWWA)
OFWs immediate family members (but only one family member
per OFW can avail)
o For married OFWs: spouse or children of legal age
o For single OFWs: parents or children of legal age
Former OWWA LDPO borrowers with good records of
repayment

Loan Purposes and Repayment Period:
For short-term operating capital of new or existing business -
two-year revolving credit line to be availed of via 30 to 180 days
promissory notes.
For permanent working capital for purchase of stock inventory
or cost of franchise - 3 years repayment including one-year
grace period on the principal
For asset acquisition or construction (except for purchase of
land) - payable in 3 to 5 years including one-year grace period
on the principal

Terms/Requirements:

Loan Amount:
Individual Borrower maximum loan of P200,000
Organized and Registered Group of at least five members
maximum of P1.0 Million.

Interest Rate:
NLDC to Program Partners
o Interest: 3% per annum to be amortized with principal
o Service Fee: 1% per annum to be deducted upon loan
release and every start of succeeding year based on
outstanding balance
Conduits to OFW borrower
o Interest: 9% per annum to be paid on maturity of short term
loan or amortized with principal in case of 3-5 year loans
o Service Fee: 2% per annum payable upon loan release
and at the start of every year thereafter based on
outstanding balance
o Facilitation Fee: 3% one time for the entire term of loan (to
cover for CI/BI, appraisal and processing expenses)

-27-
Security: Loans shall be 100% collateralized by any or a
combination of the following unencumbered assets/rights:
Real estate;
Chattel properties;
Stock inventories;
Receivables;
Insurance/pre-need policies; and,
Other types of collateral acceptable to the NLDC conduit.

Loan Requirements for OFWs
Proof of OWWA contribution
Business Plan/Project Feasibility Study
Business permit/license for on-going projects
Financial statements in case of existing business
Documents to establish borrowers relationship with the OFW
(for beneficiaries)
Collateral papers/ownership titles, etc.

Contact Details:

National Livelihood Development Corporation
Phone: (632) 914.7290 to 97 (632) 631.2955/57
Fax: (632) 631.2953/54
e-mail: nlsf-info@nlsf.gov.ph
URL: www.nlsf.gov.ph

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OPPORTUNITY MICROFINANCE BANK
OMB Building, Robinsons Homes East, Commercial Arcade-1
Robinsons Homes East, Circumferential Road, Barangay San J ose
Antipolo City

Program Title: MICROFINANCE 1 (MF 1) PROGRAM

Program Objective: To help enterprising individuals improve their
business through access of additional working capital.

Eligible Borrowers:
Currently operating a micro-business that provides a daily or
weekly income;
Must be between 18-64 years old during the time of application;
Must be of good moral character and in good health condition;
At least 1 year residency if homeowner, and 3 years if renter;
Of good credit standing and preferably no outstanding loan with
other lending organizations; and,
Must be willing to join a group for a semi-monthly meeting.

Eligible Projects/Business:
At least one year continuous business operation; and,
Engaged in trading, manufacturing, processing and services

Loan Purpose: Additional working capital

Terms/Requirements:

Loan Amount: Minimum of P2.0 Thousand; Maximum of P20
Thousand

Interest Rate: Two and one-half percent (2.5%) per month or fifteen
percent (15%) for 6 months, straight computation and amortized over
loan term

P2 Thousand to P20 Thousand 6 months
Weekly payments coinciding with the weekly meeting
Semi-monthly payments coinciding with the semi-monthly
meeting

Loan Charges:
Other charges deducted from loan proceeds:
o Service fee: 4% of the loan amount
o Documentary Stamp Tax (DST): P1.00 per P200 loan
o Filing fee P600.00 / number of members of the group
o Micro insurance fee (P235.00 client, P73.00 spouse,
P36.00/sibling or parent)
o 5% hold out deposit (to open a savings account)

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Savings Requirement:
Hold-out deposit of 20% of the approved loan amount in every
loan cycle

Loan Amount Increase:
Maximum of P3,000.00
Increase subject to Bank and Group evaluation

Requirements for Loan Renewal:
100% repayment rate with no single default payment
100% - 98% Attendance rate on weekly meeting
Business improvement

Contact Details:

Antipolo : Alexander M. Caponpon
630.0141 local 136
Valenzuela : Abegail C. Bayan
293.6365 i (632) 293.6331
Bagong Silang : Rochelle R. Bonzo
962.9070 i (632) 962.3157
Sapang Palay : Melinda V. Phua
044.691.5450
Fairview : Grace D. Hequilan
931.4113 i 931.4452
Lower Caloocan : Alvin B. Arcinue
366.8955 i 367.5649

Program Title: OPPORTUNITY KA-PARTNER MICROFINANCE 2
(OK-MF 2) PROGRAM
Program Objective: To help enterprising individuals improve their
business through access of additional working capital and acquisition of
fixed assets for business use.

Eligible Borrowers:
Must be between 21-64 years old during the time of application;
Borrower must be in good health condition; and,
At least 3 years residency if homeowner, and 5 years if renter.

Eligible Projects/Business:
At least one year continuous business operation; and,
Engaged in trading, manufacturing, processing and services.

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Loan Purpose: For business use only (additional working capital,
purchase of machineries and equipment, business site
improvement/expansion, etc.)

Terms/Requirements:

Loan Amount: P20,001.00 to P150,000.00

Interest Rate: Twenty four percent (24%) per annum, straight
computation and amortized over loan term

3 to 12 months; weekly, semi monthly or monthly
P20,001.00 to P150,000.00 thru Post Dated Check (PDC)

Loan Charges:
Application fee of P100.00, paid outright upon loan application
Other charges deducted from the loan proceeds:
o Service fee: 4% of the loan amount
o Documentary Stamp Tax (DST): P1.00 per P200 loan
o Mortgage Redemption Insurance (MRI): P0.92 per
thousand peso loan
o Loan documents and forms fee: P100.00 per loan
o Micro-insurance (Cocolife)
o Notarial fee: P150.00

Savings Requirement: 20% of the approved loan amount paid
outright (optional)

Penalty: 3% per month of the past due amortization
(Principal+Interest)

Contact Details:

OMB Trunkline No.: 630.0141
Irene Miguela local 224
Maricris Lirio/Daisy Nazarrea/Melody Yanela/Julie Dungo local 227

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Program Title: OMB WELL FAMILY MIDWIFE CLINIC
PARTNERSHIP FOUNDATION, INC.
(OMB-WPFI) Special Lending Window

Program Objectives:
To provide qualified Well-Family Midwife Clinics (WFMCs)
access to credit for the improvement and expansion of clinics
To give midwives opportunities to increase their income thereby
providing them alternative means rather than seeking overseas
employment
To provide low-income municipalities with lower cost yet quality
health and pre and post natal services

Eligible Borrowers:
Filipino citizen;
Legal age but not to exceed 65 years old at loan maturity;
Registered midwife with updated PRC license; and,
Member in good standing of WPFI for the last 6 months.

Loan Purpose:
Construction/renovation of physical facility (excluding land
development and demolition of existing structure)
Acquisition of lot, clinic equipment, instruments, vehicle and
other purposes necessary for the regular conduct of clinic
business pursuant to the franchise standards of WPFI.

Terms/Requirements:

Loan Amount: P50,000.00 to P500,000.00

Interest Rate: 18% per annum (diminishing balance)

Maturity/Repayment: 6 months 36 months

Security: Chattel, Equipment, and/or Real Estate Mortgage

Mode of Payment: Semi-monthly or monthly through post-dated
checks

Contact Details:

OMB Trunkline No.: 630.0141
Berret Cabarloc local 229
Carol N. Conde / Fe Q. Nasol local 222

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PEOPLES CREDIT AND FINANCE CORPORATION (PCFC)
2F, Accelerando Building, 395 Sen. Gil J . Puyat Avenue, Makati City
Program Title: MICROFINANCE PROGRAM

Program Objective: To provide the poor with access to livelihood credit
and other microfinance services through accredited partner microfinance
institutions (MFIs).
Eligible Borrowers / Sub-Borrowers:
Borrowers (Accredited MFIs) Non-Government Organizations
(NGOs), Cooperatives, Rural and Cooperative Banks, Thrift
Banks duly organized, with either a track record of lending
operations or with proven capabilities in implementing
microfinance programs that can augment the income of targeted
poor clients.
Sub-borrowers Households below the poverty threshold level
as defined by the National Economic Development Authority
(NEDA) and as identified by the Governments Social Reform
Agenda through the National Anti-Poverty Commission (NAPC).

Loan Purposes:
Borrowers/MFIs
o Investment Credit a revolving credit line for relending to
sub-borrowers to finance their livelihood projects.
o Institutional Credit for capability building activities of MFIs.
Sub-Borrowers working capital for income generating
activities (livelihood).

Terms/Requirements:
Loan Amount:

Borrowers/MFIs Based on evaluation/credit needs.
Sub-Borrowers in Groups or Centers or Individuals Up to a
maximum of P150,000.00 depending on sub-borrowers
requirements and cash flows.

Interest Rate:

Borrowers/MFIs
o Investment Credit: 10-12% based on interest guidelines +
1% service charge
o Institutional Credit: 3% per annum +1% service charge
Sub-Borrowers Subject to guidelines of the MFI Borrowers.

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Maturity / Repayment :

Borrowers/MFIs

Investment Credit
(per drawdown)
Institutional Credit
Short One year Two years
Medium Three years
Long Four years

Sub-Borrowers Six months to One year term; normally
payable weekly or as per policy of the MFI.

Security:

Borrowers/MFIs
Investment Credit Institutional Credit
Deed of Assignment of
Promissory Notes (PNs) of
Sub-Borrower clients and
underlying collaterals, if any.
Mortgage of assets to be
acquired from loan proceeds,
if any.

Sub-Borrowers Essentially no collateral.

Program Partners or MFIs: Please inquire from the following PCFC
officials.

Contact Details:
Regions 1, 2, 3 and CAR: Mr. Ariel M. Tatlonghari
AVP-AMG I
Phone: (632) 752.3745 local 120
Cel No. 0917.574.9912
Regions 4, 5 and NCR: Mr. Dennis A. Monong
AVP-AMG 2
Phone: (632) 752.3745 local 130
Cel No. 0917.574.9968
Regions 6, 7, and 8: Mr. Erwin M. Idong
AVP-AMG 3
Phone: (632) 752.3745 local 140
Cel No. 0917.574.9914
Regions 9, 10, 11, 12 Ms. Jessica A. Barrun
CARAGA, and ARMM: AVP-AMG 4
Phone: (632) 752.3745 local 150
Cel No. 0917.574.9915
Fax: (632) 325.0448
e-mail: info@pcfc.ph
URL: www.pcfc.gov.ph

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Program Title: MICRO-HOUSING LOAN FACILITY

Program Objective: To support the governments effort to improve the
quality of life of the poor thru financial assistance for housing
improvement such as house repairs, renovation or expansion.
Eligible Borrowers:
PCFC to MFI accredited MFI partners
MFI to Borrower Low Income families in urban and rural areas

Loan Purpose:
PCFC to MFI to finance the MFIs relending program for its
end-clients
MFI to Borrower to finance home improvement (repair,
renovation, completion, expansion)

Type of Credit Facility: Term loan (non-revolving) available within one
year from approval of credit facility

Terms/Requirements:
Loan Amount:
PCFC to MFIs based on 85% of credit needs of end clients as
indicated in the Housing Availment Plan (HAP)
MFI to Borrower in accordance with MFIs credit policies and
end-clients repayment capacity (cash flow) but shall not go
beyond P150 Thousand inclusive of end-clients other loans with
the MFI. (Labor may be provided as counterpart of end-clients.)

Interest Rate and Service Charge:
PCFC to MFI
o For PNs with term of 1 year and below 11% p.a. plus 1%
service fee
o For PNs with terms of more than 1 year 12% p.a. plus 1%
service fee
MFI to Borrower based on MFIs credit policies and guidelines

Maturity and Mode of Payment:
PCFC to MFIs up to 5 years inclusive of 6-month grace period
on principal for PNs with terms of 2 years or more; quarterly
amortization on principal and interest
but not to exceed 5 years

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Manner of Availment:
PCFC to MFIs reimbursement basis (i.e. drawdown against
actual loan releases to end clients) or liquidation basis (i.e.
drawdown based on projected loan releases); list of borrowers
to be submitted within 2 months from drawdown with PCFC.
(Staggered release based on work progress subject to loan
utilization check of previous drawdown is suggested.)

Security:
PCFC to MFIs post-dated checks; Deed of Assignment of
sub-PNs and all underlying collaterals
MFI to Borrower based on MFIs credit policies and
guidelines, i.e. chattel mortgage and insurance for loans above
P75 Thousand

Additional Availment Requirements:
PCFC to MFIs submission of Housing Availment Plan (HAP)
MFI to Borrower The house repair loan should be supported
by a livelihood project and/or total household cash flow analysis.

Basic Implementing Guidelines:
MFI partners can use their existing available credit line. If fully
utilized, the MFI may request for additional amount subject to
the usual evaluation and approving process.
For CFPs due for renewal, the credit requirements for the loan
program shall be considered and included in the amount of
credit facility for renewal.
The MFI shall submit the HAP as supporting document to the
CFP.
Loan releases for house repair shall be reported in a separate
SOE and separate caption in the PSR.

Contact Details:

Phone (632) 897.8521i 752.3745

If you are from:
Regions 1, 2, 3, and CAR Local 125
Regions 4, 5 and NCR Local 134
Regions, 6, 7 and 8 Local 144
Regions 9-12, CARAGA & ARMM Local 156


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Program Title: MICRO-ENERGY CREDIT PROGRAM

Program Objectives: To support reforms and priority investments to
improve the quality of life in rural areas through the provision of
adequate, affordable and reliable energy services specifically the small-
scale renewable energy solar home system/solar lanterns. The program
is operationalized in partnership with viable microfinance institutions.

Eligible Borrowers:
MFI to Borrower Low Income families in urban and rural areas
(Suggested priority areas are households in an un-energized
barangays and un-energized households in energized
barangays.)

Loan Purpose:
PCFC to MFI to finance the MFIs micro-energy program for
its end-clients
MFI to Borrower to finance the acquisition of small scale
renewable energy solar home system/solar lanterns of poor
individual households

Type of Credit Facility: Term loan (non-revolving) available within one
year from approval of credit facility

Terms/Requirements:
Loan Amount:
PCFC to MFIs based on 85% of credit needs of end clients as
indicated in the Solar Availment Plan (SAP)
MFI to Borrower in accordance with MFIs credit policies and
end-clients repayment capacity (cash flow) but shall not go
beyond P150 Thousand inclusive of end-clients other loans with
the MFI.

PCFC to MFI
o For Promissory Notess with term of up to 1 year 11% p.a.
plus 1% service fee
service fee

PCFC to MFIs up to 5 years PN; quarterly amortization
but not to exceed 5 years

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actual loan releases to end clients) or liquidation basis (i.e.
drawdown based on projected loan releases); list of borrowers
to be submitted within 2 months from drawdown with PCFC.
(Loan utilization check within 30 days from release is
suggested.)

Security:
PCFC to MFIs post-dated checks; assignment of (a) all PNs of
end-clients or MFIs receivables from end-clients, (b) credit
guarantee proceeds, and/or (c) buy-back proceeds.
guidelines, i.e. chattel mortgage and insurance for loans above
P75 Thousand

Additional Availment Requirements:
PCFC to MFIs submission of Solar Availment Plan (SAP)
guidelines. The micro energy loan should be supported by a
livelihood project and/or total household cash flow. [Loan
Guarantee Fund (c/o RPP-LGF) and Buy Back Scheme (c/o
supplier) are suggested.]

The MFI shall submit the SAP as supporting document to the
CFP.
Loan releases for micro-energy shall be reported in a separate
SOE and separate caption in the PSR.

Contact Details:

Phone (632) 897.8521i 752.3745

If you are from:

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Program Title: MFI EMPLOYEES LOAN FACILITY

Program Objectives: To augment the MFIs employees income by
financing MFIs loan program for them, thereby supporting the
governments efforts to reduce widespread poverty in the country.

Eligible Borrowers:
MFI to Borrower MFI employees (priority to microfinance
program staff)

Loan Purpose:
PCFC to MFI to finance the MFIs loan program for its
employees
MFI to Borrower multi-purpose loan e.g. livelihood, salary
loan, educational, emergency, appliance loan, house repair,
hospitalization, etc.

Type of Credit Facility: One year revolving credit line
Terms/Requirements:
Loan Amount:
PCFC to MFIs based on credit needs of MFI staff at 85% of
value of sub-PN as indicated in the MFI Employees Credit
Availment Plan (MECAP)
MFI to Borrower based on net take-home-pay of staff and/or
household cash flow but not to exceed P50 Thousand per
employee in accordance with MFI guidelines

PCFC to MFI
o For Promissory Notes with term of up to 1 year 11% p.a.
plus 1% service fee
service fee
MFI to Borrower based on MFIs guidelines

PCFC to MFIs up to 3 years PN; quarterly amortization
MFI to Borrower based on MFIs policies/guidelines but not to
exceed 3 years PN; payroll deduction every 15 days

actual loan releases to staff)
MFI to Borrower based on MFIs guidelines (Liquidation basis
(drawdown based on projected needs) is suggested.)

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Security:
PCFC to MFIs post-dated checks; Deed of Assignment of sub
PNs and all underlying collaterals
MFI to Borrower against staff salary and benefits and other
security requirements of the MFI

For all MFIs, the line for this facility shall be equivalent to not
more than 50% of investment credit facility or P20 Million
whichever is lower.
On case to case basis, MFIs with a fully utilized P250 Million
credit facility may request for additional amount not exceeding
P20 Million for this proposed facility or a maximum total facility
of P270 Million subject to the usual evaluation and approving
process.
The MFI shall submit MECAP as supporting document to the
CFP.
Loan releases for microfinance staff shall be reported in a
separate SOE and separate caption in the PSR.

Contact Details:

Phone (632) 897.8521i 752.3745

If you are from:


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PHILIPPINE MICROENTERPRISE DEVELOPMENT FOUNDATION (PMDF)
G/F Melendres Building, F. Manalo Street, Pasig City

Program Title: BALIKATAN SA KAUNLARAN (Partnership for
Progress)

Program Objective: To provide opportunities for poor Filipino families
particularly women to achieve self-reliance through self-help, training,
mentoring, and provision of sustainable financial services, including
collateral-free loans.

Eligible Borrowers:
Poor but enterprising women who fit the following criteria for
poverty:
o Their house index as indicated by the points system
based on floor area, type of material and roofing used
should not exceed the maximum of six (6) points; and,
o Their income index per capita should not exceed P2,000.00
per month.
Must be a group of 5 to 10 friends who trust each other and live
closely to be able to look after each other;
Must undergo a 2-day pre-loan orientation seminar to learn
about the programs philosophy and rules to be prepared for the
discipline required and pass the Group Recognition Test;
Must be willing to be federated with other recognized groups to
form a Center with a maximum of 50 women;
Must be willing to attend one-hour weekly Center meeting near
their homes; and,
Must be willing to memorize and live by the Clients Verbal
Pledge (code of honor).

Loan Purpose:
General Loan as working capital for income generating
activities (e.g. livelihood)
Special Loan to finance other non-business related needs
such as tuition fee, house repair, electric and water utility
installation, etc.

Coverage: Metro Manila

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Terms/Requirements:

Loan Amount:
General Loan P1,000.00 to P75,000.00
Special Loan P1,000.00 to 30,000.00

Interest Rate: Average interest ranges from 2.0 to 3.3% per month.
General Loan 12 to 50 weeks in weekly payments.
Special Loan 4 to 50 weeks in weekly payments.

Security:
For loans less than P20,000.00 no collateral.
For loans more than P20,000.00 Post-Dated Checks.

Other Services Offered to Clients:
Enrollment with PhilHealth (voluntary basis)
Family accident insurance coverage (very affordable premium)

Contact Details:

Head Office and Pasig Branch: (632) 641.2207 i (632) 642.3895
Marikina Branch: (632) 934.8655
Quezon City Branch: (632) 953.7276
San Juan Sub-Office: (632) 713.9402 local 111 or (632) 714.1830
Tondo Branch: (632) 712.8047

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SMALL BUSINESS CORPORATION
(Small Business Guarantee and Finance Corporation)
17th & 18th Floorrs, Antel Corporate Centre, 139 Valero Street
Salcedo Village, Makati City

WHOLESALE MICROFINANCE PROGRAM

A lending facility of Small Business Corporation to microfinance
institutions (MFIs) which have the organizational capability or strength to
provide sustainable credit access to borrowers in the livelihood sector.

Target End-Borrowers: Pre-enterprise micros, which are either start-
up or graduating micros.

Type of Facility: Credit Line

Microfinance Facilities:
MICRO-LEAD. Micro-lending through lead microfinance
institutions (MFIs) whose lending portfolio and organizational
structure are predominantly or at least 60% microfinance;
MICRO-LOCAL. Micro-lending through MSME-oriented rural
banks; and,
MICRO-LEAP. Micro-lending through small microfinance
providers such as community cooperatives and local non-
government organizations (NGOs) or peoples organizations
(POs) who do not meet the SBC standards under MICRO-
LEAD.

Program Title: MICRO-LENDING THROUGH LEAD MICRO FINANCE
INSTITUTIONS (MICRO-LEAD)

Target Conduit:
Medium Micro Finance-Oriented Institutions (with asset size of
at least P15 Million and not more than P100 Million)
Large Micro Finance-Oriented Institutions (with asset size of at
least P100 Million)

Minimum Qualifications for Medium MFIs:
o At least 3 years in microfinance operations
o At least 3,000 microfinance clients; if wholesaler, at least 10
conduits
o Must have a manpower of at least 20 exclusively for
microfinance operations; if wholesaler, at least 10
o At least 60% microfinance portfolio

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o If bank, CAMELS rating of at least 3
o Latest Financial Ratios
- At least 1.2 current ratio (if bank, at least 1.0)
- Capital Adequacy Ratio of at least 20% (if bank, at
least 10%)
- Microfinance portfolio-at-risk (PAR) not more than 10%.
o Borrower Risk Rating of 5 or better per SBC evaluation

Minimum Qualifications for Large MFIs:
o At least 10 years in microfinance operations
o At least 20,000 microfinance clients; if wholesaler, at least
20 conduits
o Must have a manpower of at least 100 exclusively for
microfinance operations; if wholesaler, at least 20
o At least 60% microfinance portfolio
o If bank, CAMELS rating of at least 3
- At least 1.2 current ratio (if bank, at least 1.0)
- Capital Adequacy Ratio of at least 20% (if bank, at
least 10%)
- Microfinance portfolio-at-risk (PAR) not more than 8%

Loan Purpose:
Retail re-lending to micro-borrowers
Wholesale relending to MFIs

Terms and Requirements:

Loan Amount:
Medium MFIs:
o Minimum of P3 Million
o Maximum of P50 Million on the first year
o Maximum of P100 Million for the succeeding years
Large MFIs:
o Minimum of P15 Million
o Maximum of P100 Million on the first year
o Maximum of P200 Million for the succeeding years

Line Drawdown:
Minimum of P100 Thousand but up to 30% of credit line per
drawdown

Term and Line Expiry
One year credit line, subject to renewal

Repayment Term per Drawdown:
360 days, payable quarterly; may be up to 2 years, if justified by
nature of micro-borrowers business

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Interest Rate: Available upon request

Service Fees:
Evaluation fee of 0.05% of credit line (none, if bank)
Processing fee of 0.1% of loan availment (none, if bank)

Pass-on Rate Incentive:
MFIs with monthly average end-borrower pass-on rate of 2.5%
(1.2% for wholesalers), inclusive of service fees, shall be given
an incentive. All fees (evaluation and loan availment processing
fees) shall be refunded in favor of the MFI upon its credit line
renewal.

Security:
Continuing Surety Agreement of principals

Letter of Intent to Borrow
Notarized Client Information Sheet with 1x1 recent ID picture of
each principal stockholders/officer (SBGFC form); for banks,
Bio-data of all major stockholders and/or officers as submitted
to BSP
Business registration papers
Board Resolution to borrow and on authorized signatories with
specimen signature/s
Audited financial statements for the past three years, if
applicable, and latest interim financial statements (not more
than 6 months old)
Organizational structure/background information
Schedule of borrowings including details on terms of payment,
collateral cover and credit status
Certificate of good standing from creditors (if applicable)
Aging of loan portfolio
Schedules of past due, microfinance PAR and loan-loss
provisioning

Program Title: MICRO-LENDING THROUGH MSME-ORIENTED
RURAL BANKS (MICRO-LOCAL)

Target Conduit:
Rural and Cooperative banks with the following minimum
qualifications:
o At least 3 years in existence as a bank; may be on a start-
up basis in microfinance
o At least 50 existing microfinance clients; if start-up, should
plan for at least 50

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o Must have a manpower of at least three exclusively for
microfinance operations; if start-up, should plan for at least
3
o Minimum asset size must conform with BSP guidelines
o CAMELS rating of at least 3
- Current ratio of at least 1.0
- Capital Adequacy Ratio of at least 10% (per BSP
guidelines)
- Microfinance portfolio-at-risk (PAR) of not more than
10%
- Past due rate not exceeding 15%, preferably at par with
industry average

Loan Purpose: For re-lending to micro-borrowers

Terms/Requirements:

Loan Amount:
Minimum of P200 Thousand
Maximum of P50 Million on the first year
Maximum of P100 Million for the succeeding years

Line Drawdown:
Maximum of 30% of credit line

Term and Line Expiry:

nature of micro-borrowers business as in the case of
graduating micros

Interest Rate: Available upon request.

Service Fees: None

renewal.

Security:
Continuing Surety Agreement of principals
Hard collateral may be required if start-up in microfinance

Documentary Requirements: Same as those for MICRO-LEAD.

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Program Title: MICRO-LENDING THROUGH SMALL MICRO
FINANCE PROVIDERS (MICRO-LEAP)

Target Conduit:
Small community cooperatives
Small non-government organizations (NGOs)
Peoples Organizations (POs)

Minimum Qualifications:
o Asset size of at least P500 Thousand and net worth of at
least P300 Thousand
o At least one year in microfinance operations
o At least 20 microfinance clients
o Must have a manpower of at least two, one of whom may
be part-time
- Current ratio of at least 1.2
- Capital Adequacy Ratio of at least 20%
- Past due rate not more than 20%

Loan Purpose: For re-lending to micro-borrowers

Terms/Requirements:

Loan Amount:
Maximum of P10 Million on the first year
Maximum of P20 Million for the succeeding years

Line Drawdown:
Maximum 30% of credit line

Term and Line Expiry:

nature of micro-borrowers business as in the case of
graduating micros

Interest Rate: Available upon request.

Service Fees:
Evaluation Fee of 0.2% to 0.5% of credit line
Processing Fee of 0.5% of loan availment

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renewal.

Security:
Continuing Surety Agreement of principals (a must)
Hard collateral may be required on case to case basis.

Documentary Requirements: Same as those for MICRO-LEAD
and MICRO-LOCAL.

Program Title: WHOLESALE LENDING WINDOW FOR
GRADUATING MICROS AND BMBEs
(For All SBC Accredited Financial Institutions)

Sub-Borrower Definition:
With asset size of not more than P3.0 Million; and
Total loans inclusive of the PFIs is not more than P500
Thousand.

Consideration Granted on the Sub-borrower:
May be on clean basis in terms of collateral cover
Any valid permit will suffice as business registration
Financial information simply based on the certification of the PFI
will suffice, in the absence of full financial statements

Validity Period: The graduating micro may be funded by SBC under
these relaxed terms for a period of not more than four years.

Documentation Requirements for Availment:

For submission to SBC prior to loan release:
Information sheet of the sub-borrower as prepared by the PFI
(SBC Form)
PFI loan approval in favor of sub-borrower
Sub-borrowers PN with consent to assignment, disclosure
statement and amortization schedule

Should be available at the PFI office for SBC post-release audit:
Loan agreement between PFI and sub-borrower, if applicable
PFIs loan ledger on sub-borrower
PFIs calculation of the sub-borrowers financials
Sub-borrowers business permit or certification

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Miscellaneous Guidelines:
The PFI may avail in batches of less than P500 Thousand under
the window, but the loan floor of P100 Thousand per sub-
borrower shall remain.
Any micro-enterprise that complies with all the standards of SBC
on collateral cover, on business registration with DTI or SEC and
on the full financial statements may be funded under the regular
SME Wholesale Lending Program.
In addition to banks and to NBFIs, the Window is also open to
microfinance institutions such as cooperatives and non-
government organizations that have graduating micro-borrowers.

Pass-on Rate:

360 days and below 7.3% p.a. if compliant with standard
collateral requirement
7.5% p.a. if otherwise

More than 360 days 7.8% p.a. if compliant with standard
collateral requirement
8.2% p.a. if otherwise

No processing fee shall be charged regardless of the term of the loan.

May be on clean basis in terms of collateral cover
Any valid permit will suffice as business registration

Contact Details:

SB Corporation Head Office
17
th
Floor, 139 Corporate Centre
Valero St., Salcedo Village, Makati City
Phone No. (632) 751.1888
Fax No.: (632) 894.1677 i 813.5726
URL: www.sbgfc.org.ph

-49-

-50-

SMALL AND MEDIUM
ENTERPRISE (SME)
FINANCING PROGRAMS

-51-

-52-
ASIATRUST DEVELOPMENT BANK
1424 Quezon Avenue, Quezon City

Program Title: TERM LOAN
Program Objective: To provide financing assistance to small and
medium enterprises (SMEs) for their more permanent working capital
requirements such as acquisition of equipment or other fixed assets,
construction of buildings for expansion purposes and others.
Eligible Borrowers:
Single Proprietorship
Partnership
Corporation
Businessmen/Entrepreneurs

Loan Purposes:
Permanent Working Capital
Acquisition of Fixed Assets
Renovation/Expansion

Terms/Requirements:
Loan Amount: Depends on the actual requirement.

Interest Rate: Prevailing market rates.

Maturity / Repayment: One to five years or depending on the actual
requirement and cash flow of the company.
Principal Equal monthly/quarterly amortization.
Interest Monthly/quarterly payment, based on diminishing
balance.

Security:
Real Estate Properties or Chattel Mortgage;
Postdated Checks (PDCs) of the borrower; and
Continuing Suretyship of the Principals.

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Program Title: LOAN LINE

Program Objectives: To provide financing to small and medium
enterprises (SMEs) for short term working capital requirements.

Eligible Borrowers:
Partnership
Corporation

Loan Purpose: For working capital requirement.

Terms/Requirements:

Loan Amount: Depends on actual requirement.


Maturity / Repayment: One year
Principal Lumpsum upon maturity with provision for rollover.
Interest Monthly interest payment.

Security:
Real Estate Properties or Chattel Mortgage;

Program Title: CHECK/ RECEIVABLES DISCOUNTING LINE

Program Objective: To address gaps in the cashflow of small and
medium enterprises (SMEs) by turning their receivables and post-dated
checks from their customers into cash through discounting these at the
Bank.
Check Discounting involves discounting of third party
postdated checks.
Receivables Discounting involves discounting of different
types of receivables like purchase orders or sales contract.

Eligible Borrowers:
Partnership
Corporation

Loan Purpose: Discount receivables for working capital.

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Terms/Requirements:
Loan Amount: Depends on actual requirement.


Availment: Co-terminus with the life of Receivables

Maturity / Repayment: One year from date of approval.
Principal Lumpsum upon maturity.
Interest Discounted upon availment.

Security:
Real Estate Properties or Chattel Mortgage (optional).
Deed of Assignment of Receivables;
Third party postdated checks for check rediscounting;
Postdated Checks (PDCs) of borrower; and

Program Title: DOMESTIC / IMPORT LETTER OF CREDIT / TRUST
RECEIPT

Program Objective: To facilitate the timely delivery of the domestic or
imported purchases of raw materials and merchandise of small and
medium enterprises (SMEs) by providing a credit facility to the SME
whereby the payment is to be made to the beneficiary (seller) against
presentation of commercial documents. The payment to the beneficiary
is guaranteed by the bank, provided all documents conform with the
terms and conditions of the credit.
Eligible Borrowers:
Partnership
Corporation

Loan Purpose: For domestic purchase of raw materials.

Terms/Requirements:
Loan Amount: Depends on the actual requirement.

Interest Rate: Prevailing market rates upon Trust Receipt date.

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Availment: Via Trust Receipts for 90 days, renewable for another 90
days, subject to 25% partial payment on principal and subject to
inspection if goods under TR are still present.

Charges: Opening Commission of 1/4 of 1% for the first 60 days and
1/8 of 1% every month, thereafter, and Negotiation fee of 1/8 of 1%.

Maturity / Repayment: One year from date of approval.

Security:
Trust Receipts on goods purchased via LC;
Marginal Deposit of 20%;

Asiatrust Development Bank is also accredited in various special lending
programs of government:

Development Bank of the Philippines
Industrial & Support Services Expansion Program
Industrial Guarantee Loan Fund
J apan Bank for Industrial Cooperation (J BIC)

Land Bank of the Philippines
Countryside Loan Fund 1 & 2
Countryside Loan Fund 3
Agricultural Loan Fund

Social Security System
SSS School Financing Program
SSS Hospital Financing Program
SSS Special Financing Program

Contact Details:

Ms. Monique Casantosan
Branch Lending Group
Phone: (632) 924.5680 924.5777
e-mail: customerhotline@asiatrustbank.com
URL: www.asiatrustbank.com

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DEPARTMENT OF SCIENCE AND TECHNOLOGY (DOST)
Bicutan, Taguig, Metro Manila

Program Title: SMALL ENTERPRISE TECHNOLOGY
UPGRADING PROGRAM (SET-UP)

SET-UP is a nationwide strategy to encourage and assist SMEs to adopt
technological innovations to improve their operations and thus boost
their productivity and competitiveness. The program enables firms to
address their technical problems through technology transfer and
technological interventions to improve productivity through better product
quality, human resources development, cost minimization and waste
management, and other operation related activities.

Program Objectives/Targets:
SET-UP hopes to assist SMEs improve their productivity and
competitiveness through:

Infusion of new/advanced technologies to improve operations of
SMEs;
Manpower training, technical assistance and consultancy
services;
Design of functional packages;
Assistance in the establishment of product standards including
testing;
Database management system; and,
Provision of limited funds for technology acquisition.

Industry Sectors Covered:
Food Processing;
Furniture;
Gifts, Housewares, Decors;
Marine and aquatic resources;
Horticulture (cut flowers, fruits and high value crops); and,
Metals and engineering.

Qualified Applicants:
Any company or individual firm based in the Philippines and
wholly owned by Filipino citizens.
Any small and medium scale business firm that can be
classified under the identified priority sectors.
Individual firm that is willing to apply technological
improvements in their existing operations.

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Requirements:
Full-blown project proposal to include aspects on technical,
marketing, management/administrative, financial, and waste
disposal;
Endorsement of the DOST Regional Director;
Executive Report prepared and signed by all members of the
Review and Technical Evaluation Committee (RTEC) and duly
noted by the Regional Director;
Proponents letter of interest to avail of financial assistance and
commitment to payback including their proposed repayment
schedule;
Copy of business permits and licenses from relevant LGUs and
other government offices to include Certificate of Registration of
Business Name with DTI, SEC or CDA;
Financial statements of at least the past three (3) years for the
company/beneficiary duly signed by a Registered
Accountant/Auditor;
Projected financial statements for the next five (5) years;
Board Resolution authorizing the borrowing and designating
authorized signatories for the financial assistance (if applicable);
Three (3) quotations from suppliers/fabricators of the equipment
to be purchased/fabricated; and,
Complete technical design/drawing of the equipment to be
purchased/fabricated.

Contact Details:

DR. MARIPAZ L. PEREZ
Undersecretary for Regional Operations
Department of Science and Technology
Bicutan, Taguig City

Phone: (632) 837.7531
Telefax: (632) 837.2944
e-mail: mlperez@dost.gov.ph

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DEVELOPMENT BANK OF THE PHILIPPINES (DBP)
Head Office: Sen. Gil J . Puyat Ave. cor. Makati Avenue, Makati City

Program Title: DBP LENDING PROGRAM FOR SMALL AND
MEDIUM ENTERPRISES

Program Objective: To provide the small and medium enterprises
access to market, finance and technical assistance to effectively
encourage the growth and development of the sector throughout the
country.

Eligible Borrowers:
(at least 70% Filipino-owned)
Small and Medium-sized Enterprises (SMEs) with total asset
size of P3,000,001 to P100 Million
Accredited Participating Financial Institutions (PFIs)
Aggregators

Eligible Sectors/Sub-Sectors
Manufacturing, including support industries
Transportation and Transport Services
Education
Communications / IT / Computer Software
Wholesale and Retail, Distribution
Franchising / Dealership / Trading
Hospital and Healthcare Services
Agri-processing
Storage & Warehousing facilities
Education linked to manufacturing
Others

Loan Purposes:
Construction, expansion or modernization of new & existing
capacities
Acquisition of machinery/equipment, new technology including
spare-parts, components & software packages
Investment to enhance research & development including
training that would improve & strengthen competitiveness of
products
Short term working capital
Permanent working capital for stocks of raw materials, supplies
& other requirements needed

Terms/Requirements:
Interest Rate: Market-based, fixed or variable

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Maturity / Repayment - based on cash flow, but not to exceed:
15 years with maximum grace period of 3 years for fixed assets
7 years with maximum grace period of 2 years for permanent
working capital

Fees and other Charges: Depending on fund source

Equity Requirement: Minimum of 10 20% depending on fund
Source

Re-lending Scheme: Wholesale and Retail

Collateral: Any form of security acceptable to DBP

Other Support Services:
Loans counseling through Business Assistance Centers
Alternative Trading System
Internet Cafe
IGLF Grant for Research and Promotion of SMEs

Program Title: ONE TOWN ONE PRODUCT (OTOP) CREDIT
FACILITY

Program Objectives:
To support the National governments poverty alleviation efforts
in terms of job and income generation;
To sustain DBPs developmental mandate by encouraging
entrepreneurship in the countryside using locally available raw
materials and inherent human resources, skills and talents,
thus, spurring economic activity and job opportunities in each
locality;
To reaffirm the Banks commitment to be a catalyst for
countryside development by empowering the countrys MSMEs
through the provision of easy access to credit and technical
assistance.

Fund Allocation: A nationwide funding allocation of P2.0 Billion to
implement the DBP-DTI OTOP Memorandum of Agreement.

Eligible Borrowers: LGUs, OFWs, and MSMEs with existing or start-
up OTOP projects and other income-generating undertakings highly
supportive of the OTOP Program.

For MSMEs, loan proposals shall be favorably endorsed by the
Department of Trade and Industrys Regional Operations and
Development Group (RODG) or any of DTIs Regional or
Provincial Offices;

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For land-based OFWs; priority shall be given to those endorsed
by the National Reintegration Center;
For sea-based OFWs, priority shall be given to loan proposals
endorsed by Magsaysay Maritime Corp., Nippon Yusen Kaisam
or other DBP partner agencies.

Loan Purposes:
All project-related expenditures;
For LGUs, funding may be for common service facilities
(including but not limited to, farm to road networks, markets,
pasalubong centers, OTOP display centers, terminals,
warehousing facilities, machineries and equipment, etc.) for the
benefit of the OTOP entrepreneurs, in the locality. LGUs may
use loan proceeds for re-lending to DTI-assisted OTOP
entrepreneurs.

Terms/Requirements:
Loan Amount:
Up to 90% of project cost, depending on fund source and
borrowing capacity;
For LGUs, loan amount shall be based on limitations borrowings
set forth by the Local Government Code.

Funding Source: IGLF/ODA Funds / Bank Funds, depending on
project eligibility

Interest Rate:
8% to 10% per annum; fixed for 3 years; depending on
Borrower Risk Rating (BRR);
With premium of 1% for loans over 3 years up to 5 years and
2% for loans over 5 years.

Term of the loan shall be based on projected cash flows, but not to
exceed:

180 days for export packing credit
One (1) year for production credit
Five (50 years for permanent working capital
Ten (10) years for capital expenditures
Maximum grace period shall not exceed 1 year for working
capital and 3 years for fixed asset acquisition/building
construction.

Mode of Payment: Loan shall be payable monthly, quarterly or
semi-annually depending on the cash flow of the project

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Collateral:
The loan shall be secured by any or a combination of the following:
Real Estate/Chattel Mortgage
Hold-out on deposit
For LGUs, Deed of Assignment of specified portion of IRA
Co-marketship; J oint and Solidary Signature
Assignment of project income, purchase orders, export
receivables, etc.
Guarantee from PhilEXIM / SBGFC / LGUGC /endorsing
organization.

The strength of cash flow and cash capture mechanism shall be the
overriding considerations in requesting waiver of the collateral
requirement.

Minimum Risk Acceptance Criteria:
Favorable endorsement by the Department of Trade and
Industrys Regional Operations and Development Group or any
of DTIs Regional/Provincial Offices;
For LGUs, common facilities/infrastructures to be constructed
are preferably components of DBPs Sustainable Logistics
Development chain and are directly supportive of the OTOPs in
their locality with the objective of providing a conducive
environment for entrepreneurship to thrive;
For OFWs, favorable endorsement from DBP partner agencies
to establish employment status and capacity to pay;
The OTOP proponent has a ready and clearly established
market for its products/services that would ensure a stable cash
flow for loan repayment;
DBP shall finance projects which are technically, financially,
economically, and environmentally viable.

Basic Requirements:
Application Letter
Customer Information Report (DBP Form)
Confidential Information Sheet (DBP Form)
DTI endorsement of project
Business Plans
Audited Financial Statement (F/S) for the last 3 years for going
concerns and Pre-operating Balance Sheet/cashflow signed by
the firms authorized signatory for start-up projects(for medium
sized entrepreneurs); In the case of Micro and Small
Entrepreneurs/OFWs, if audited F/S is unavailable, In-House
Financial Statements duly certified by the firms
Accountant/Comptroller will be accepted.
Income Tax Returns for the last 3 years, if applicable
Business Registration Permit; Articles of Incorporation, By-laws
Documents authorizing the borrowing and designating the
authorized signatories for the loan

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Other Requirements for OFWs:
National Reintegration Center for OFW, Magsaysay Maritime
Corporation Nippon Yusen Kaisa, or other DBP partner
agencies endorsement of OFWs
OFW availees shall be required to open a DBP EC Card for
payment of loan authorizations.

Other Requirements for LGUs:
Resolution passed by the appropriate Sanggunian authorizing
the CLE to negotiate and sign documents on behalf of the LGU
relative to the loan with DBP
Statement of IRA (last 10 years) duly certified by the CLE or
Treasurer
Socio-economic profile of the LGU
Certification of the Treasurer on current status of existing loans
and compliance to 20% borrowing cap
Certification of the Bureau of Local Government Finance,
Department of Finance on the LGUs Debt Service Ceiling for
the current year

Program Title: OFW i-Net NEGOSYO PROGRAM
Program Objective: To provide livelihood opportunities for the families
of OFWs in the Philippines.
Eligible Borrowers:
Overseas Filipino Workers (OFWs) with:
o valid employment contract of not less than six (6) months
o a corresponding working visa and a specified beneficiary as
co-borrower. OFWs borrower/co-borrower should have at
least a joint monthly gross income equivalent to P 25,000
including other determinable/verifiable income for every unit
availed of.

Terms/Requirements:
Loan Amount:
Up to P 45,000.00 per unit with the following components to be
provided by SMART:
o Brand New Desktop Computer with Microsoft Operating
System and a one year hardware warranty;
o One year unlimited Smart Bro Internet Connection with
speed up to 384 KBPS;
o SMART Load retailer SIM with free P500 load;
o SMART Buddy 3G Cellphone;

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o Banners and Flyers to promote the internet rental
services;
o Welcome Kit and trouble shooting guidelines;
o Maintenance support and after sales service thru
SMARTs customer care program.

Interest Rate: 9.0% per annum (fixed)

Maturity / Repayment: Loan payable up to 12 months in equal
monthly amortizations.

Program Title: NEGOSYO CREDIT PROGRAM FOR GOVERNMENT
EMPLOYEES Puhunang Pangnegosyo Para sa
Kawani ng Gobyerno

Program Objectives:
To provide government employees thru their cooperatives
and/or employee associations, access to GFIs/GOCCs negosyo
funds to finance alternative livelihood projects which the
employee and/or his family wish to engage in;
To support government thrust of providing income augmenting
negosyo projects to government employees.

Eligible Borrowers:
Conduit - Government Employee Cooperatives or Government
Employee Associations
Sub-borrower regular permanent employees

Accreditation Criteria:

For Government Employee Cooperatives
o Coop must be in operation and profitable for the last 2
years;
o With membership of at least 50
o Debt equity ratio of 6:1 after financing
o Liquidity ratio of 1:1
o Past due ratio of not more than 15%
o Risk asset ratio not less than 10%
o Certificate of good standing from CDA (as to compliance
to basic requirements) acquired at most 2 years prior to
application

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For Employee Association
o Has relending authority;
o Must be in operation and registered positive net worth for
the last 2 years;
o With committed and active membership of at least 50;
o Presence of management team; complete and well
managed records, accounting, and internal control
systems;
o Satisfactory financial standing based on evaluation of
wholesale funder

Loan Purpose: For livelihood projects of employee and/or their
families. Loans are not meant for consumption.

Basic Features:
Wholesale lending program to be implemented by GFIs/GOCCs
with government employee cooperatives/ associations as
relending institution;
Proposed lending program will follow normal lending
procedures/ requirements for microfinance, e.g.:
o Uncollateralized loans starting at P3,000 given in cycles of
3 -6 months
o Gradual increase in loan size based on project success/
repayment record, etc.
o Group or individual liability
o Bi monthly or monthly repayments
Loan repayment automatically deducted from employees salary
Interest rate and service fees shall be according to existing
practice.

Terms/Requirements:
Loan Amount:
GFI to Employee Coops/Associations based on evaluation
Employee Coops/Associations to End-Clients maximum of
P150 Thousand per employee

Interest Rate:
GFI to Employee Coops/Associations 12% per annum
Employee Coops/Associations to End-Clients based on
existing lending policies of the cooperative/ association

Repayment Term / Mode of Payment:
GFI to Employee Coops/Associations maximum of 2 years;
eight quarterly amortizations for a 2 year PN
Employee Coops/Associations to End-Clients maximum of 2
years; mode of payment is based on existing lending policies of
the cooperative/association

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Security:
GFI to Employee Coops/Associations Post dated checks of
the coops; Deed of Assignment of end clients PN
Employee Coops/Associations to End-Clients based on
existing lending policies of the cooperative/association

Basic Documentary Requirements for Government Employee
Coops / Associations:
Certificate of Registration with CDA (for government coops) or
SEC (for government employee associations)
Copy of Articles of Incorporation and By Laws
Information sheet of BDO and Officers
Board Resolution authorizing cooperatives/ associations to
borrow and designating at least 2 officers to negotiate and sign
loan documents
Financial Statements for the last 2 years and interim FS at time
of application
Copy of the Cooperatives/ Associations lending policies

Participating Agencies:
Development Bank of the Philippines
Land Bank of the Philippines
Peoples Credit and Finance Corporation
Quedan Rural & Credit Guarantee Corporation
Small Business (SB) Corporation

Program Title: ORGANIC AGRICULTURE FINANCING PROGRAM

Program Objectives:
To provide and make available regular credit and other support
mechanisms to improve productivity and income of farmers
engaged or will engage in organic agriculture;
To promote development of organic agriculture to enhance
global competitiveness, environmental integrity, food security,
increase productivity and alleviate poverty;
To encourage the participation of millers/processors/producers
and cooperatives as a ready market/buyer under this program.

Eligible Borrower-Conduit:
SEC Registered financing company with at least 2 years
profitable operations:
o Banks-thrift banks, rural banks, microfinance banks,
cooperative banks
o Non-banks-NGOs, cooperatives, with at least 2 years
lending and profitable operations

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Eligible Sub-Borrowers: Individuals, partnership, corporation or
cooperative duly registered with DTI / Securities and Exchange
Commission or Cooperative Development Authority who own titled land
or with tenurial arrangement on land suitable for planting to high-value
commercial crops.

Loan Purpose:

DBP to Borrower-Conduit - for relending to farmers/growers/ for
organic crops production
Borrower-Conduit to Sub-Borrower - Sub-loan shall be utilized
to cover the cost of organic crops production including but not
limited to the following:
o Land preparation
o Purchase of planting materials, fertilizers and agricultural
chemicals
o Labor in planting, cultivation and other maintenance
operations
o Irrigation and drainage
o Acquisition of farm machinery, equipment and tools
o Other purposes that contribute directly to increase
productivity and maintenance of the plantation

Priority Crops for Financing:

High priority shall be given to:
Organic rice
Muscovado sugar
Organic vegetables/processed organic vegetables (pickles,
chunks, etc.)

Other organic crops shall be considered on a case to case basis
depending on its development impact on the sector.
Eucheuma seaweeds
Organic fruits/processed organic fruits (jams, purees,
marmalades, figs, fries, catsup, fritters, cakes, juices, tableas,
candies, dried fruits, etc.)
Organic cereals, legumes, sweet pepper
Organic root crops
Culinary herbs
Poultry meat & eggs
Processed pork meat
Beverages
Honey
Others

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Minimum Risk Acceptance Criteria: The borrower-conduit should
have existing or proposed lending program for organic agriculture project
following the Big Brother scheme and similar arrangements where
farmers/growers have existing purchase or contract or contract growing
agreements with buyers.

Types of Facility:
DBP to Borrower-Conduit - Clean Revolving Credit Line (CRCL)
Borrower-Conduit to Sub-Borrower:
o Credit line working capital for production
o Term Loan to finance post harvest/facilities/processing
requirement

Terms/Requirements:

Loan Amount:
DBP to Borrower-Conduit based on the amount established
and proposed by the borrower-conduit
Borrower-Conduit to Sub-Borrower based on the following:
o Incremental project cost
o Viability of the project

Interest Rates:
DBP to Borrower-Conduit minimum of 8% per annum
Borrower-Conduit to Sub-Borrower not more than 18% per
annum

Repayment:
DBP to Borrower-Conduit not applicable
Borrower-Conduit to Sub-Borrower Repayment would be
based on the project cash flow or payback period as determined
by DBP but not to exceed 5 years inclusive of 3-year grace
period

Equity:
Borrower-Conduit to Sub-Borrower No equity requirement for
organic crops production except for the project site

Collateral:
DBP to Borrower-Conduit loans should be secured by any or
a combination of the following:
o Assignment of Real Estate Mortgage and/or Chattel
Mortgage of sub-borrowers

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Borrower-Conduit to Sub-Borrower the sub-loan shall be
secured by any or a combination of the following:
o Real Estate Mortgage
o Chattel Mortgage
o SBGFC, Quedancor, and/or other government
guarantee
o Crop Insurance
o Other types of collateral/securities acceptable to the
borrower-conduit

Collateral/s/securities of sub-borrowers shall be assigned in favor of
DBP.

Basic Requirements:

The borrower shall submit loan proposal together with the following
documentary requirements to Microfinance Department and other
lending units including Financial Institutions (wholesale banking) and
RMCs/Branches:

Letter of Intent
Loan/project proposal/feasibility study
Certificate of Registration/By-Laws and Articles of Incorporation/
Cooperation (or any equivalent documents)
Audited Financial Statements (last 3 years), if applicable
Income Tax Returns (last 3 years), if applicable
Other documents that maybe necessary in the loan evaluation

Other Conditions:
DBP shall be the borrowers official and principal depository
bank.
The average daily balance of the borrowers deposit account
shall not be less than 5% of the outstanding balance.
Payment of amortization shall be through automatic debit of the
borrower-conduits deposit account with DBP.
A crop production project shall be covered by crop insurance or
any other equivalent instrument/coverage that will pave way to
investment recovery during calamity, to be assigned in favor of
DBP/borrower conduit.

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Program Title: HIGH VALUE COMMERCIAL CROPS FINANCING
PROGRAM

Program Objectives:
To provide credit for high value commercial crops production
projects in order to accelerate the growth and development of
Philippine Agri-Business as part of the National Governments
thrust.
To develop high value commercial crops for exports to
significantly increase the foreign exchange earnings of the
country.
To improve the standard of living of farmers by providing them
the opportunity to increase their income.

Eligible Borrower-Conduit:
profitable operations
Financial Institutions:
o Banks - thrift banks, rural banks, microfinance banks,
cooperative banks
o Non-banks - NGOs, cooperatives, with at least 2 years
lending and profitable operations

Eligible Sub-Borrower: Individuals, partnership, corporation or
cooperative duly registered with DTI/Securities and Exchange
Commission or Cooperative Development Authority who own titled land
or with tenurial arrangement on land suitable for planting to high-value
commercial crops.

Loan Purpose:
DBP to Borrower-Conduit - for relending to farmers/growers for
high value crops production
Borrower-Conduit to Sub-Borrower - sub-loan shall be utilized to
cover the cost of high value crops production including but not
limited to the following:
o Land preparation
o Purchase of planting materials, fertilizers and agricultural
chemicals
o Labor in planting, cultivation and other maintenance
operations
o Irrigation and drainage
o Acquisition of land specifically for pineapple production
(exclusively for OFW proponents)
o Other purposes that contribute directly to increase
productivity and maintenance of the plantation

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Priority Crops for Financing:

Fruits

:

banana, pineapple, mango, durian,
pummelo, calamansi, pili, lanzones, papaya,
mangosteen
Vegetables : asparagus, broccoli, shallot, cabbage,
celery, cauliflower, etc.
Plantation
Crops
: rubber, coffee, oil palm and cacao

Other high value commercial crops, such as the following, shall be
considered on a case to case basis depending on its development
impact on the sector:

Rootcrops : sweet potato, white potato, ube, etc.
Legumes : peanut & mungbean
Spices : Onion, garlic & ginger
Ornamentals : Foliage & cutflowers
Essential Oils : Lemon grass & ilang-ilang

Minimum Risk Acceptance Criteria: The borrower-conduit should
have existing or proposed lending program for high value crops project
following the Big Brother scheme and similar arrangements where
farmers/growers have existing purchase or contract growing agreement
with buyers.

Types of Facility:
o Credit line working capital for production
o Term Loan to finance post harvest/facilities/processing
requirement

Terms/Requirements:

Loan Amount:
Borrower-Conduit to Sub-Borrower based on the following:
o Incremental project cost
o Viability of the project

Interest Rates:
DBP to Borrower-Conduit minimum of 8% per annum
annum

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Repayment:
Borrower-Conduit to Sub-Borrower repayment would be
based on the project cycle and cash flow but not to exceed 10
years inclusive of 3- year grace period

Equity:
Borrower-Conduit to Sub-Borrower No equity requirement for
high crops production except for the project site

Collateral:
o Chattel Mortgage
guarantee
o Crop Insurance
o Other types of collateral/securities acceptable to the
borrower-conduit

Collateral/s/securities of sub-borrowers shall be assigned in favor of
DBP.

Basic Requirements:

The borrower shall submit loan proposal together with the following
documentary requirements to Microfinance Resource Center and/or
other marketing units including Financial Institutions (wholesale banking)
and RMCs / Branches:
Letter of Intent

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Other Conditions:
bank.
shall not be less than 5% of the outstanding balance.
borrower-conduits deposit account with DBP.
A crop production project shall be covered by crop insurance or
any other equivalent instrument/coverage that will pave the way
to investment recovery during calamity, to be assigned in favor
of DBP/borrower conduit.

Program Title: CLEANER PUBLIC TRANSPORT FINANCING PROGRAM

Program Objectives:
To support the objective of Republic Act 8749 (Clean Air Act) by
providing financial assistance to the public transport sector to
comply with the government requirements in the implementation
of the R.A.
To help uplift the health condition of the workers in the public
transport sector, commuters and other residences of the
metropolitan areas.
To help the national government in cleaning the environment
and save the resources that is being spent to arrest health
caused by pollution.

Eligible Borrowers:
Financial Institutions:
cooperative banks
o Non-banks-NGOs, Cooperatives, Transport Federations
and Associations with at least 2 years lending and

Loan Purpose:
DBP to Borrower-Conduit - for re-lending to Transport
Operators (jeepneys/tricycles)
o Acquisition of brand new vehicle (at least EURO 2
compliant)
o Conversion of 2-stroke to 4-stroke engine of tricycles
o Retrofitting of Engine
o Diesel Particulate Trap for buses and jeepneys
o Installation of catalytic converter
o Use of alternative fuels (CNG, LPG, bio-fuels)

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Types of Facility:
Borrower-Conduit to Sub-Borrower - Clean Revolving Credit
Line (CRCL)

Terms/Requirements:
Loan Amount:
Borrower-Conduit to Sub-Borrower up to 90% of the total
project cost

Interest Rates:
DBP to Borrower-Conduit 8% per annum, fixed over life of
loan
month

Repayment:
DBP to Borrower-Conduit Maximum of five (5) years, inclusive
of maximum three (3) months grace period
Borrower-Conduit to Sub-Borrower Maximum of five (5) years,
inclusive of maximum three (3) months grace period

Equity:
DBP to Borrower-Conduit none
Borrower-Conduit to Sub-Borrower Minimum of 10% of total
project cost

Collateral:
securities
o Hold-out on deposits
o Other types of collaterals/securities acceptable to the
Bank
o Chattel Mortgage
o Government guarantees
o Hold-out on deposit

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Basic Requirements:
Letter of Intent
Other documents that may be necessary in the loan evaluation

Other Conditions:
bank
shall not be less than 5% of the outstanding balance
borrower-conduits deposit account with DBP

Program Title: DBP FINANCIAL ASSISTANCE TO OVERSEAS
PLACEMENT AGENCIES (For Borrower-Conduit)

DBP SUPPORT TO FAMEs* Paglingap ng Bayan sa
OFW PROGRAM THRU FINANCIAL INSTITUTION-
CONDUITS (* Federation Association of Manpower
Exporters, Inc.)

Program Objective: To provide financial assistance to Overseas
Placement Agencies (OPAs) on the recruitment training and business
development activities for a more efficient deployment of Overseas
Filipino Workers thus enhancing their image in the eyes of the OFWs in
particular and the public in general.

Eligible Borrowers:
Financial Institutions
cooperative banks
o Non-banks with at least 2 years profitable operations,
NGOs & Cooperatives

Minimum Risk Acceptance Criteria: The borrower conduit should
have existing or proposed program for OFWs with savings component
similar to the FAMEs Paglingap ng Bayan sa OFW Program

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Terms/Requirements:
Loan Amount:
DBP to Borrower-Conduit based on the required amount
established and be proposed by the eligible borrower
Borrower-Conduit to Sub-Borrower based on the actual
requirement of an OPA

Interest Rates:
DBP to Borrower-Conduit prevailing DBP rate based on
wholesale pricing shall be applied
Borrower-Conduit to Sub-Borrower prevailing market rate but
not to exceed 3% per month

Repayment: Maximum of 360 days for working capital, renewal will
be allowed.

Collateral: Loans should be secured by any or a combination of the
following:
Hold-out on bank deposit
OWWA and/or other government guarantees
Real estate and/or chattel mortgage
Other collateral/security acceptable to the Bank.

Other Conditions:
bank.
All payroll-related remittances of the sub-borrowers OFWs
including loan amortization must be coursed through the DBP
Remittance Center.
shall be equivalent to at least two (2) amortizations.
borrower-conduits deposit account.
The sub-borrower OPA should be a member in good standing
and duly endorsed/certified by the respective association.
The POEA required escrow account deposit of the sub-borrower
OPAs shall be deposited with DBP.

Basic Requirements: The borrower shall submit loan proposal
together with other documentary requirements to DBP Microfinance
Resource Center (MFC) and/or other marketing units including
AMOs/Branches.

Letter of Intent

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List of migrant workers (land or sea-based) for deployment

Program Title: ENVIRONMENTAL DEVELOPMENT PROGRAM

Program Goal: The Environmental Development Program (EDP) is
based on the principle of sustainable development, that is,
environmental protection and socio-economic development are
complementary and enhance one another. The goal of the program is to
make a significant contribution in environmental protection and
enhancement and in the sustainable development and utilization of
natural resources in line with the governments policy thrusts.

Program Objectives: EDP caters to the environmental financing needs
of both government and private sectors in:
Improving the quality of the environment in ways that also assist
industries to achieve production efficiency and competitiveness
as well as regulatory compliance.
Enabling local government units to manage environment and
natural resources in ways that increases their income and their
capability to respond to the needs of their constituents; and
Developing and managing natural resources sustainability in
ways that provides communities with basic needs including
potable water, sanitation services, waste management and
reliable and affordable electricity; and opportunities to
alternative livelihood and enterprise development.

Program Components:
Credit Programs to finance investment requirements
Clean Development Mechanism (CDM) to assist CDM eligible
projects in securing carbon credits which can be utilized as
additional fund to accelerate loan amortization payment and/or
security for the loan
Technical Assistance to assist borrowers in project
preparation and for capacity improvement of bank staff in
program management

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CREDIT PROGRAMS

Eligible Borrowers:
Private corporations/enterprises
Renewable Energy Service Companies/Corporations (RESCOs)
Qualified Third Parties (QTPs) for energy projects
Private Utility Operators
Local Government Units (LGUs)
Non-governmental Organizations (NGOs)
Electric Cooperatives (ECs)
Cooperatives other than electric cooperatives (Coops)
Water Districts (WDs)
Participating Financial Institutions (PFIs)

Eligible Projects:

Power Generation/Distribution
o Small-scale energy/generation and mini-grid rural
electrification projects thru renewable energy resources
o Stand-alone renewable energy rural electrification project,
including the marketing, sale, purchase, and installation
of Renewable Energy Technology Systems

Clean Alternative Transport Fuel
o Projects that will reduce air pollutant emission from motor
vehicles
- Acquisition of Original Equipment manufacture (OEM)
vehicles run by LPG/CNG
o Fuel Supply Infrastructure Facilities
- Transmission
- Distribution e.g. refueling stations, blending
stations/depots, specialized tankers
o LPG/CNG Vehicle Support Service Facilities
- Conversion/retrofitting shops
- Service centers
o Equipment and/or technology supply e.g. cylinder tanks,
conversion kits, etc.
o Investments in the production of alternative fuel for
vehicles and industry (e.g. coo methyl ester, biothanol)
o Investments in supply infrastructure facilities including
distribution facilities for alternative fuels e.g. blending
stations/depots, specialized tankers.

Water Supply Sanitation and Services
o Bulk Water Supply
o Level 3 water supply system (new, rehabilitation and
expansion)
o Sanitation Services
o Urban Drainage

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Solid and Hazardous Waste Management
o Closure and rehabilitation of dumpsite
o Conversion of dumpsite into sanitary landfill
o Construction of sanitary landfill
o Solid waste collection, transport, treatment and disposal
including acquisition of equipment
o Materials Recovery Facility (MRF)/ composting facility
o Industrial waste recycling/treatment or disposal
o Hazardous waste treatment, storage and disposal

Water and Air Pollution Prevention and Control
o Projects that improve the quality of the environment thru
pollution prevention and reduction including
environmental monitoring instrument and equipment
o Occupational health and safety improvements
o Reduction of raw materials inputs for production
o Waste minimization/clean technology in industrial
processes/pollution prevention
o Wastewater and sewerage treatment facility
o Establishment of EMS & ISO 14001 certification
o Relocation of pollutive industry from residential area
o Contracts for capital goods & services within the
environment sector
o Investments in energy saving equipment
o Support for environmental investments as well as
industries undergoing restructuring

Eco Tourism
o Eco-tourism facilities and support infrastructure
particularly those located along coastlines and protected
forest zones.

Carbon Sequestration
o Afforestation and reforestation in private lands

Loan Purpose:
Capital investment
Working capital
Interest during construction period
Consultants services

Terms / Requirements:

Interest Rate: Prevailing market rate, fixed or variable

Repayment: Up to fifteen (15) years with up to five (5) years grace
period based on project cash flows

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Equity:
Private Corporations minimum of 20% based on total project
cost
LGUs, Electric Cooperatives, NGOs, Water Districts (WDs)
minimum of 10% based on the project cost

Collateral:
Real estate mortgage
Chattel mortgage
Assignment of receivables with recourse
Assignment of Power Purchase Agreement
Assignment of Carbon Emission Reduction Purchase
Agreement (ERPA), if any
Assignment of revenues
Assignment of Notice of Payment Schedule (NPS)
Loan Guarantee, if any
Collateral sharing with NEA
Assignment of insurance cover
J oint and Several Signatures
Internal Revenue Allotment (IRA) for LGUs
Assignment of Billed Receivables
Assignment of J oint Deposits of LUWA and WD of the WD
Reserve requirement
Other acceptable asset/s

Checklist of Requirements:

General Requirements
o Bio-data of Applicants/Major Stockholders/Officers
o Certificate of Registration of Business/Articles of
Incorporation/ By-Laws certified by the Board Secretary
o Board Resolution of Sanggunian Bayan Resolution
authorizing the borrowing and designating authorized
signatories for the loan
o Certified list of stockholders and officers
o Customer Information Report (DBP Form)
o Income tax return (last 3 years)
o BIR received audited financial statements (last 3 years)
o Feasibility study / business plan on the proposed project

Note: There are additional requirements based on the nature of
projects.

Requirements on the Collateral to be Offered

On Lot / Building:

o 2 copies of lot plan, certified by a geodetic Engineer
o Location/vicinity map

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o 2 photocopies of TCT/OCT authenticated by the Registry
of Deeds
o Latest real estate Tax Declaration and tax receipt
o Bill of materials, building plans and specifications (if with
construction)
o Building permit to be submitted before construction

On Machinery and Equipment:

o Affidavit of ownership and non-encumbrance of
machineries and equipment with complete machine
specification
o Suppliers quotation of machinery and equipment with
complete technical specifications for machinery to be
acquired
o Contract to sell for machinery to be acquired
o Copy of Certificate of Registration with LTO for
transportation equipment
o Importation documents (for verification of imported
equipment)

CLEAN DEVELOPMENT MECHANISM

Carbon credits from CDM-registered projects as security for the loan or
for acceleration of loan amortization payments.

Eligible Projects:

Projects that reduce Greenhouse gases emission such as Carbon
Dioxide (CO
2
), Methane (CH
4
), Nitrous Oxide (N
2
O), Hydroflourocarbons
(HFCs), Perfluorocarbons (PFCs) and Suphur Hexaflouride (SF6).

Emission Reduction Projects
o Renewable Energy hydro, solar, wind, geothermal,
biomass, biogas, tidal/wave power projects
o Fuel Switching
- from diesel/bunker fuel to bio-diesel, ethanol, natural
gas or renewable energy
- from electricity to steam or compressed air
o Demand-side energy efficient improvements
- Use of energy efficiency equipment such as motors,
lamps, ballasts, refrigerators, fans, air conditioners,
appliances, etc.
o Supply-side energy efficiency improvements
- Generation efficiency improvements at power stations
and district heating plants and co-generation
- Transmission and Distribution system loss reduction

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o Agriculture (reduction of CH
4
and N
2
O emissions)
- Reducing emissions from agricultural soils by the use
of ammonium sulfate or the use of phosphogypsum in
combination with urea instead of urea alone; use of
composted rice straw instead of fresh rice straw;
reducing methane emissions from livestock.
o Industrial Processes
- Methane recovery and avoidance from
landfills/dumpsites, coal mines, agro-industries,
wastewater treatment facilities
- Cement production (CO
2
)
- Electric equipment manufacturing (SF
6
)
- PFC emissions form aluminum production
- PFC and SF
6
emissions from semiconductor
manufacturing
- Nitrous Oxide (N
2
O) emissions from adipic acid and
nitric acid manufacturing)

Carbon Sequestration Projects
o Afforestation planting of trees on agricultural land
o Reforestation planting of trees on denuded forest land
Reforestation activities will be limited to those lands that
remained unforested as of December 31, 1989.

Initial Requirements:
Letter of Intent to pursue Clean Development Mechanism from
the client
Project Idea Note DBP can assist in the preparation of this
requirement

Program Title: SUSTAINABLE LOGISTICS DEVELOPMENT
PROGRAM (SLDP)
ROAD RORO TERMINAL SYSTEM (RRTS)

Program Description: DBPs Sustainable Logistics Development
Program (SLDP) identified 49 connections within the Road RORO
Terminal System (RRTS). While more than half of the connections are
already operational, the rest have remained without service. DBP
recognizes the need to support the capital infrastructure requirements of
these missionary. The liberalized credit terms offered by DBP aim to
fast track the establishment of specific inter-island links vital to
sustaining economic development in the countryside.

Eligible Borrowers:
Single proprietorships
Registered partnerships
Private corporations
Government-Owned and Controlled Corporations (GOCCs)

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Eligible Projects: Investments in RORO vessels to be deployed in
Road RORO Terminal System (RRTS) missionary connections. These
connections or links are initially identified as follows:

San Narciso, Quezon San Pascual, Burias Island, Masbate
Aroroy, Mabate Pasacao, Camarines Sur
Pilar, Sorsogon Aroroy, Masbate (or Masbate City)
Cataingan, Masbate Kawayan, Biliran
Cawayan, Masbate Daan Bantayan, Cebu
Liloan, Cebu Getafe, Bohol
J agna, Bohol Mambajao, Camiguin Island
Mariveles, Bataan Cavite City Manila
Calatagan, Batangas Abra de Ilog, Mindoro Occ.
San J ose, Mindoro Occ. Coron, Palawan
San J ose, Mindoro Occ. Semirara Island Caticlan, Aklan
Sibuyan Island Romblon Roxas, Mindoro Oriental
Mandaon, Masbate Roxas City, Capiz
San Fernando, Ticao Island, Masbate Bulan, Sorsogon
Maasin, Leyte Ubay, Bohol
Catanauan, Quezon Sta. Cruz, Marinduque
Manapla, Negros Occ. Ajuy, Iloilo
Guihulngan, Negros Or. Dumanjug, Cebu
Sibulan, Negros Or. Santander, Cebu
Santander, Cebu Larena, Siquijor Island
Northeastern Luzon Pacific Coastal Service
o Sta. Ana, Cagayan Maconacon, Isabela Palanan,
Isabela Dilasag, Aurora
o Casiguran, Aurora Baler, Aurora Dingalan, Aurora
Infanta, Quezon

Loan Purpose: Up to 100% financing for the acquisition of RORO
vessels:
Cost of imported, second-hand units, including conduction
costs. However, age of vessel should not exceed twenty (20)
years, should be currently in class of still acceptable under the
standards of any DBP-recognized classification society.
Cost of shipbuilding contract. DBP shall finance construction of
RORO vessels by local shipyards.

Ship Classification Requirement: RORO vessels to be financed must
be classed by any of the following:
Member of the International Association of Classification
Societies (IACS)
Philippine Register of Shipping (PRS)

Terms/Requirements:

Interest Rate:
For the first 2 years seven percent (7%) per annum;

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For the succeeding years - Annual re-pricing based on
prevailing PDSTR (Philippine Dealing System Treasury
Reference) rates for 10-year benchmark plus 0 to 1%
depending on annual credit review.

Repayment: Maximum repayment term of fifteen (15) years
inclusive of two (2) years maximum grace period. Repayment term
and grace period shall depend on the cash flows of the project.
Loan amortization shall be made on a monthly basis with interest
computed on outstanding principal balance.

Pre-Termination: Pre-termination may be allowed subject to 30
days advance notice and payment of all accrued interest and other
charges. No prepayment penalty.

Collateral:
Chattel Mortgage on vessel to be financed
Other forms of collateral
Marine insurance endorsed in favor of DBP shall be maintained
throughout the term of loan

Other Conditions:
Refundable cash deposit equivalent to three (3) months
amortization;
Value added tax (VAT), import taxes and duties shall be for the
account of the borrower
Deployment of the financed RoRo vessel in a commercial route
is allowed provided the replaced RORO vessel is deployed to a
DBP identified missionary route and maintained throughout
the term of the loan.

How to Apply:
Eligible borrowers should submit to DBP letter of intent (LOI) to
avail of financing for a specific RORO links identified;
Submission of loan application requirements including
information for the conduct of credit and background
investigation.

Loan Application Requirements: A Project Brief should be submitted
to the SLDP Project Team for eligibility clearance. Suggested outline of
the Project Brief is as follows:

Brief history of the company
Present status of company
o Owners, management & staff
o Major assets and financial status
o Existing operations & market
Companys proposed project
o Proposed missionary connection
o Identification of port terminals to be used
o Projected market & marketing strategy

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o Projected income & expenses
o Project Timetable
o Ship Description and Specifications
o Ship Management and Crewing
o Training & Preventive Maintenance Program
Vessel cost estimates and specifications, including ship
drawings, if any

Qualifying Criteria:
Established shipping operator, preferably with a fleet of vessels
in the domestic market;
Strong capital/financial position of principal borrower;
Managerial & technical competence in shipping operations;
Readiness of port terminals with required RORO ramps and
facilities.

Once a project in a specific connection/link has been selected for DBP
financing, the required project feasibility study (FS) and ship drawings
should be submitted by the applicant to DBP through the Account Officer
processing the loan application.

Other Requirements:
Proponents should comply with requirements of Local
Government Units, International Maritime Organization (IMO)
Conventions, Maritime Industry Authority (MARINA), Philippine
Coast Guard (PCG), environment and other governmental
regulations;
All vessels to be financed must be suitable for its projected
market & ports of call and classed by a DBP and MARINA-
recognized classification society. Vessels class should be
maintained throughout the term of the loan.
Whenever applicable, vessels to be acquired should have
pollution prevention facilities such as waste treatment system
and oil-water separation system.

Program Title: SUSTAINABLE LOGISTICS DEVELOPMENT
PROGRAM (SLDP)
FINANCING OF COLD CHAIN PROJECTS IN THE
FISHING INDUSTRY

Program Description: DBPs Sustainable Logistics Development
Program (SLDP) aims to develop the logistics cold chain for efficient
distribution perishable food items. More particularly, special focus is
given to the fishing industry inasmuch as the sector is a source of
livelihood for many marginalized Filipinos with fish as a source of cheap
food and protein for nutrition. This component focuses on the reduction
of wastage and spoilage of fish, and maintaining their shell life and
quality through a connected refrigerated chain from producers to

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consumers. Short-term gaps in demand and supply are also addressed
by the availability of continuous supply from the fishing areas, thus,
contributing to the stabilization of commodity prices in the market.

Eligible Borrowers:
Single proprietorships (Filipino citizens)
Registered partnerships
Private corporations at least 60% Filipino-owned
Cooperatives and associations

Eligible Projects: Eligible investments are those projects in the fishing
sector which adhere to the concept of cold chain logistics using an
integrated project approach. This concept takes into account the
different components involved in the processing and transport of fish
catch from harvest areas to the different markets. The components of
fish transport would include:

Fishing vessels (wooden hulled vessels are not included) and
fishing gear (excluding nets)
Refrigerated fish carriers
Fish landing ports and other support facilities (e.g. cold storage,
processing center)
Fish handling/transport equipment (e.g. reefer vans, forklifts)

Municipal Fishing and Small Marginalized Commercial Fishing:
Vessels not more than 3 GT
Lending to organized groups or fishermens cooperatives

Large Commercial Fishing:
In accordance with requirements of the project

Loan Purpose: Up to 80% financing for the investments in the
following:
Cost of locally constructed or imported, brand new or second-
hand units of fishing vessels and refrigerated carriers.
However, vessels should be currently in class or still acceptable
under the standards or any DBP-recognized classification
society.
Cost of conduction for imported vessels
Cost of construction/upgrading of fishport and support facilities
Cost of handling and transport equipment

Vessel Classification Requirement: Fishing vessels/refrigerated
carriers to be financed must be classed throughout the term of the loan
by any of the following:
Member of the International Association of Classification
Societies (IACS)
Philippine Register of Shipping (PRS)

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Terms/Requirements:

Loan Amount:
Minimum amount of P 500 Thousand
Maximum Amount - in accordance with requirements of the
project

Interest Rate:

Municipal Fishing and Marginalized Commercial Fishing:
For the first 2 years seven percent (7%) per annum;
For the succeeding years Annual re-pricing based on
prevailing PDSTR (Philippine Dealing System Treasure
Reference) rates for 10-year benchmark plus 0 to 1%
depending on annual credit review.

Commercial Fishing Projects:
Fixed, based on DBP rates for SLDP projects

Repayment: Maximum repayment term of ten (10) years inclusive
of two (2) years maximum grace period. Repayment term and grace
period shall depend on the cash flows of the project. Loan
amortization shall be made on a quarterly basis with interest
computed on outstanding principal balance.

Collateral:
Chattel Mortgage on vessel to be financed
Other forms of collateral
Marine insurance endorsed in favor of DBP shall be maintained
throughout the term of loan

Other Conditions:
Value Added Tax (VAT), import taxes and duties shall be for the
account of the borrower

Loan Application Requirements: A Project Brief should be submitted
to the SLDP Project Team for eligibility clearance. Suggested outline of
the Project Brief is as follows:

Brief history of the company
Present status of company
o Owners, management & staff
o Major assets and financial status
o Existing operations & market
Proposed project/Purpose
o Projected market & marketing strategy
o Projected income & expenses
o Project Timetable
o For vessel acquisition, vessel cost estimates and
specifications, including ship drawings, if any

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Once a project has been found eligible for DBP financing, the required
project feasibility study (FS) and ship drawings should be submitted by
the applicant to DBP through the Account Officer processing the loan
application.

Other Requirements:
Proponents should comply with requirements of Local
Government Units, International Maritime Organization (IMO)
Conventions, Maritime Industry Authority (MARINA), Philippine
Coast Guard (PCG), DENR among others.
Whenever applicable, vessels to be acquired should have
pollution prevention facilities such as waste treatment system
and oil-water separation system.

Contact Details:

SVP Corazon D. Conde
Head, Small & Medium Enterprise Department Phone: 815.1520

SAVP Dulce Q. Raosa Phone: 892-5727
SAVP Adelaida B. Guanzon Phone: 892-2557
AVP Joaquin E. Gelvezon Phone: 894.4927
SM Romeo B. Carandang Phone: 892.2357
Mgr. Paul Eric M. del Rosario Phone: 894.4927

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EXPORT AND INDUSTRY BANK
Export Bank Plaza, Export Bank Drive corner Chino Roces Avenue
Makati City

Program Title: EXPORT TRADE FINANCING
Program Objective: To provide pre and post shipment working capital
via EXPORT ADVANCE LOAN (EAL) and EXPORT BILLS PURCHASE
(EBP).
Eligible Borrowers:
Exporters (direct/indirect) of various industry sectors (furniture,
gift, toys, housewares, Christmas decors, garments, fine
jewelries, and food among others)

Loan Purpose: working capital requirement for pre and post shipment

Terms/Requirements:
Loan Amount: Up to 70% of Export Letter of Credit (ELC),
confirmed Purchase Order (PO) or Sales Confirmation (SC)

Interest Rate:
Prevailing bank interest rate payable and subject to review
every 30 days
Bangko Sentral ng Pilipinas (BSP) Rediscounting Rate up to 90
days

Maturity: LC expiry date/15 days after shipment date of PO, SC

Repayment: Proceeds of export shipment

Security:
Real Estate Mortgage (REM)
Guarantee Cover thru Small Business Corporation (SBC) or
thru Philippine Export-Import Credit Agency (PHILEXIM)

Support:
Continuing Suretyship of Principal Owners
Post dated checks (PDCs)

Program Partners/Conduit:
Rediscounting Bangko Sentral ng Pilipinas (BSP)
Guarantee SB Corporation, PHILEXIM

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Program Title: DOMESTIC TRADE FINANCING
Program Objective: To provide working capital for local trade
transactions.
Eligible Borrowers:
Manufacturers, traders of various industry sectors

Loan Purpose: working capital

Terms/Requirements:
Loan Amount: Up to 70% of Domestic Letter of Credit (DLC),
confirmed Purchase Order (PO) or Sales Confirmation (SC)

Interest Rate: Prevailing bank interest rate payable and subject to
review every thirty days

Maturity: LC expiry date/15 days after shipment date of PO, SC

Security:
Guarantee Cover thru Small Business Corporation

Support:

Program Partner/Conduit: Guarantee - Small Business Corporation

Program Title: IMPORT TRADE FINANCING WITH TRUST RECEIPT

Program Objective: To provide credit facility for the opening of import
letters of credit (ILC) and non LC transactions such as Documents
against Payment (D/P) and Document against Acceptance (D/A)
Eligible Borrowers: Importers, traders, manufacturers of various
industry sectors

Loan Purpose: For importation of raw materials, machinery and
equipment

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Terms/Requirements:
Loan Amount: Depending on actual requirement

Marginal Deposit: Amount subject to risk rating of borrower

Trust Receipt Interest Rate: Prevailing bank interest payable and
subject to review every 30 days

Maturity: short term, depends on the business cash cycle

Security:
Guarantee Cover thru Philippine Export-Import Credit Agency
(PhilEXIM)

Support:

Program Partner/Conduit: Guarantee - PhilEXIM

Contact Details:

Dino Bernard T. Quiroz
Relationship Manager Unit Head
Corporate Loans
Phone: 878.0320
e-mail: dbtquiroz@exportbank.com.ph

Francisco D. Maramba
Relationship Manager Unit Head
Corporate Loans
Phone: 878.0210
e-mail: fdmaramba@exportbank

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FOUNDATION FOR A SUSTAINABLE SOCIETY, INC. (FSSI)
Unit E, 46 Samar Avenue cor. Eugenio Lopez Street, South Triangle,
Quezon City

Program Title: COCO COIR BUSINESS INTEGRATION AND
DEVELOPMENT PROGRAM (COCOBIND)

Program Objectives:
To contribute to the creation of business and employment
opportunities for the coconut farmers and their families.
To contribute to the further development of the coco-coir
industry in the country.

Eligible Borrowers::
Non-Government Organizations (NGOs), Peoples
Private Individual/Single Proprietor
Private Corporations

Guarantee

Terms/Requirements:

Loan Amount: Minimum of P500,000.00; Maximum of P35.0 Million
(Maximum of P5.0 Million for first time borrowers)
Interest Rate:
For NGOs, POs, Coops & Unions prevailing 364-day T-Bill
Rates +(5 - Projects EEI rating*) +1% SF +RVAT
For Private Social Enterprise prevailing 364-day T-Bill Rates +
(5 - Projects EEI rating) +2% SF +RVAT

Maturity / Repayment: One to five years maturity in monthly,
quarterly, semi-annual, or annual payments.
Security:
75% Real Estate Mortgage or
Chattel Mortgage
Deed of Assignment

Contact Details:
Mr. Ariel Nones
Program Manager
Telefax: (632) 928.8671; Mobile: +639209539856
e-mail: ariel@fssi.com.ph

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Program Title: SUSTAINABLE WASTE MANAGEMENT
ECO-ENTERPRISE PROGRAM (SWEEP)

Program Objective: To provide technical and business development
support and financial services to stimulate and accelerate the
development of viable and ecologically sound entrepreneurial activities
in the waste management sector.

Eligible Borrowers:

Guarantee

Terms/Requirements:

Loan Amount: Minimum of P500 Thousand
Maximum of P15.0 Million
Interest Rate:
Rates +(5 - Projects EEI rating) +1% SF +RVAT

quarterly, semi-annual, or annual payments
Security:
Chattel Mortgage
Deed of Assignment

Contact Details:

Mr. Augusto Camba Engr. Reynante Maruquez
Associate Director Program Officer
Telefax: (632) 928.8671 Telefax: (632) 928.8671
e-mail: ac@fssi.com.ph e-mail: rvmaruquez@fssi.com.ph
Mobile: +63920953958 Mobile: +639209539855

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Program Title: SUSTAINABLE PARTNERSHIP FOR
ECO-ENTERPRISE DEVELOPMENT (SPEED)

Program Objectives:
To harness the entrepreneurial capacities of the marginalized
sector through direct and effective delivery of financial and
enterprise development services that are appropriate to
community-based enterprises, development organizations and
individual private social entrepreneurs.
To provide assistance to those emerging enterprises that
promote eco-enterprise principles and at present not covered by
services within the Foundations sub-sector-specific programs.

Eligible Borrowers:

Guarantee

Terms/Requirements:

Loan Amount: Minimum of P500,000.00
Interest Rate:
Rates +(5 - Projects EEI rating) +1% SF +RVAT

quarterly, semi-annual, or annual payments
Security:
Chattel Mortgage
Deed of Assignment

Contact Details:
Mr. Jerome Ignacio
Program Manager
Phone/Fax: (632) 928.8671; Mobile: +639209540206
e-mail: jerome@fssi.com.ph

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Program Title: FUND FOR A SUSTAINABLE CIVIL SOCIETY
(FSCS)

Program Objectives: To generate and mobilize resources:
Towards enabling civil society organizations to engage in
sustainable livelihood and eco-enterprise development projects
or activities with the active participation/and for the benefit of the
poor and marginalized sectors in rural and urban communities;
and,
To support building the capacity initiative of poor communities
and consolidate the infrastructure of CSOs (sectoral or multi-
sectoral) based on solidarity that would lead to planned actions
that could influence policies or larger events focused on asset
reform, development financing, environment protection and
promotion of gender equity.

Eligible Borrowers:
Philippine-based and Philippine-managed Non-Governmental
Organizations (NGOs), Peoples Organizations and
Cooperatives that are duly registered with recognized or official
accreditation bodies and have sound reputation among
colleague-organizations in their respective regions of origins

Start-Up Eco-Enterprise Development (SEED) Grant Window 1
Capacity Building Grant Window 2
Advocacy Grant Window 3

Terms/Requirements:
Grant Window 1: Supports start-up eco-enterprises and
livelihood initiatives up to a maximum grant of P1.5 Million with
2 to 3 years project period limit; grant recipients are encouraged
to donate back to the FSCS grant facility the same amount used
as direct investment once the project started to generate
income.
Grant Window 2: Projects and activities concerning human
resource competency, business planning, technology, market,
and product development; maximum grant amount is
P500,000.00
Grant Window 3: Supports advocacy projects/activities that
pertain to Asset Reform, Gender and Environment, and
Development Financing that are part of or would contribute to a
larger development initiatives or programs; should help
strengthen existing eco-enterprises of the communities or lead
to the creation of new eco-enterprises; maximum grant amount
is P300,000.00.

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Proponents could only avail of the grant assistance once a year or
after the end of project term for SEED projects with more than one
(1) year project duration.

Project proponents are required to provide project equity of at least
25% of the total project cost. FSCS shall fund direct project cost
and encourage proponents to shoulder administrative and personnel
costs as part of their counterpart.

Contact Details:

Mr. Arlen Barrameda Ms. Geraldine Laroza
Program Manager Program Officer
Phone/Fax: (632) 928.8671 Phone/Fax: (632) 928.8671
Mobile: +639209539857 Mobile: +639209539897
e-mail: arlen@fssi.com.ph e-mail: geraldine@fssi.com.ph

*Project EEI Rating: Eco-Enterprise Index (EEI) Rating from Project
Appraisal (Lowest Rating is 1; Highest Rating is 5)
*EEI: based on the triple bottomline criteria of FSSI, (1) Economic
Viability, (2) Social Equity or Community Participation, and (3) Ecological
Soundness

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LAND BANK OF THE PHILIPPINES (LBP)
1598 M.H. Del Pilar corner Dr. J . Quintos Streets, Malate, Manila

Program Title: EASY PONDONG PANG-ASENSO (EPPA)

Program Objective: A lending program that is specifically packaged
to address the financing needs of small entrepreneurs. The program
accommodates new/start-up and existing projects with easy collateral
requirements and simpler documentation procedures.

Eligible Projects:
Manufacturing;
Agri-business and agro-processing (except farm level
production); and,
Services (including trading and merchandising).

Eligible Borrowers/Qualifications:
Asset size of above P3 Million P100 Million (excluding value
of lot where business is located);
Sole Proprietorship and Partnership (100% Filipino-owned);
and,
Corporations (at least 60% Filipino-owned).

Loan Purposes: Working capital and fixed asset acquisition (except lot
acquisition)

Terms/Requirements:

Loan Amount: Up to 80% of the total project requirement

Interest Rate: Based on prevailing market rate.

Term:
Credit Line with one year availability, renewable
Term Loan based on the cash flow of project/s financed with
maximum of two (2) years grace period on principal payments

Collateral Requirements: Any or combination of, as may be
required:
Real Estate/Chattel Mortgage (REM/CHM)
Hold-out on Deposits
Assignment of Receivable and/or Inventory
J SS of Principal Stockholders/Officers
Guarantee cover from Small Business Corporation (SB
Corporation), if required

Insurance Requirements:
Insurance on Chattels
Mortgage Redemption Insurance

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Processing Requirements

For Single Proprietorship:
Certificate of Registration with DTI
Bio-data of applicant
Mayors Permit
Income Tax Return (last 3 years)
Financial Statements (last 3 years, audited)
Latest Interim Financial Statement
Statement of Assets and Liabilities
Projected Financial Statements (for new/start-up business)

For Corporation:
Corporate Documents
List of Officers and Directors as certified by Corporate Secretary
and Bio-data of Officers/Directors
Alien Registration Certificate of Foreign Officers
List of Stockholders and their shareholdings
Statement of Assets and Liabilities of Officers
Board Resolutions to: (1) borrow in the amount of and (2) sign
in behalf of the company
Financial Statement (last 3 years, audited)
Latest Financial Statement
Projected Financial Statements (for new/start-up corporations)

Other Documents to be required (when applicable):
Copy of LC, pro-forma invoice, PO
Industry membership/Association Endorsement
Business Plan/Feasibility Study
Environmental Compliance Certificate
HLURB Permit
List of Banks/Creditors with Dealings
List of Suppliers/Contact Persons
Project-related documents
Collateral documents (copies of TCTs, Tax Declaration,
Location Plan, RETR, pro-forma invoice for chattels)
Brief history of operations
Copy of BOI registration
Projected Financial Performance
Accomplished BBI Sheet

Contact Details:
Programs Management Department II (PMD II)
Phone: (632) 405.7309 (632) 551.2200
locals 2448, 2589, 2728, or 2650
Telefax: (632) 405.7640
e-mail: caldaymendoza@mail.landbank.com

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Program Title: SME UNIFIED LENDING OPPORTUNITIES FOR
NATIONAL GROWTH (SULONG)

Program Objectives:
To simplify and standardize the lending procedures of
government financial institutions (GFIs) thereby enhancing the
SMEs access to needed funds;
To shorten the list of documentary requirements to further
facilitate the lending process;
To create a wider, borderless financing system that will afford
the SMEs greater access to short- and long- term funds; and,
To lower the effective cost of borrowing by SMEs and liberalize
the requirements.

Eligible Borrowers:
Enterprises in all industries except trading of imported goods,
liquor, cigarettes, and extractive industries; and,
Enterprises that are at least 60% Filipino owned, whose assets
are valued at not less than P3.0 Million, but not more than
P100.0 Million, excluding the value of the land, or subject to
ownership rules as defined under existing Philippine laws for
specific industries.

Loan Purposes:
Short-Term Loans For export financing (export packing credit)
or a credit line for temporary working capital
Long-Term Loans For permanent working capital, purchase of
equipment or lot, or construction of a building/warehouse

Terms/Requirements:
Loan Amount:
Short-term Loans Up to 70% of the value of the LC/PO (export
packing), or 70% of working capital requirement (temporary
working capital); maximum P5.0 M
Long-term Loans Up to 80% of the incremental project cost;
maximum of P5.0 M

Interest Rates:
The participating GFIs will charge the same rate for the program
based on a regular review.
Rates for loan releases (effective until 31 December 2008):
Fixed Rate:
o Short-term loan up to 1 year 9%
o Term loan of up to 3 years 12%
o Term loan of up to 5 years 14%

Variable Rate:
o Term loan of up to 3 years 11.0%
o Term loan of up to 5 years 13.5%

Interest rates are revised periodically.

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Short-term loans Maximum of one year
Long-term loans Maximum of five years, inclusive of a
maximum one year grace period on principal monthly
amortization

Security: The program will not decline a loan only on the basis of
inadequate collateral. However, the borrower must be willing to
mortgage any available business and personal collateral, including
assets to be acquired from the loan, to secure the borrowing. The
following are acceptable collaterals:
REM
Machinery & Equipment
Hold-out on Deposit
Deed of Assignment on inventory and receivables
J SS of principal stockholders/officers
Guarantee cover from SBGFC

Participating GFIs: Land Bank of the Philippines, Development Bank of
the Philippines (DBP), Social Security System, Small Business
Guarantee and Finance Corporation, Philippine Export-Import Credit
Agency (PhilEXIM), Quedan and Rural Credit Guarantee Corporation
(Quedancor), National Livelihood Support Fund (NLSF)

Contact Details:

Phone: (632) 522.0000 (632) 551.2200
locals 2650, 2589
Direct Line: (632) 405.4640
Fax: (632) 405.7640

Program Title: ACCELERATING CHANGE IN THE COUNTRYSIDE
THRU EQUITY SHARING STRATEGY (ACCESS)

Program Objective: To catalyze countryside development by promoting
livelihood and rural employment, and by priming up local agri-related
and off-farm economic projects to raise productivity and income in
priority areas of the country.

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Program Components:
Equity Investment
Provision of Professional Management Team
Technology Transfer and Marketing Assistance
Equity Divestment

Eligible Partners:
Cooperatives/Federations;
Farmers and Fisherfolk;
Non-Government Organizations (NGOs);
Private Entrepreneurs;
Local Government Units (LGUs); and
Other interested investors.
Partners should have no adverse CI/BI reports.

Eligibility Requirements:
Agri-related and off-farm economic projects;
Located outside National Capital Region (NCR) and Metro
Cebu; however, projects located inside the mentioned areas
may be considered if raw materials are sourced from outside
the said places.
IRR of at least 12%
At least four stockholders (including Landbank)

Equity Investment Features:
Loan Amount: Minimum of P1.0 Million; LBP Equity investment
shall neither exceed P20.0 Million nor 35% of the total subscribed
capital stock or 35% of total voting stock in a single enterprise,
whichever is lower; provided that the total government equity shall
not exceed 49% and foreign equity shall not exceed 40%. Investment
shall be in Preferred Shares with voting power.

Dividend Rate: Entitled to cumulative dividends (including
undeclared/ unpaid dividends for the prior year/s), Dividend Rate
based on 91-day T-Bill rate computed at the end of the calendar year

Divestment:
Shall be sold or redeemed at par value within a period of 15
years based on a schedule formulated by the Board of Directors
considering the cash flow of the project.
The corporation shall establish a sinking fund to ensure the
redemption of Landbank shares.

Contact Details:
Program Management Department I (PMD I)
Phone: (632) 522.0000 (632) 551.2200 locals 2384
Fax: (632) 528.8542
e-mail: LBP-PMD2@mail.landbank.com

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Program Title: RETAIL COUNTRYSIDE FUND (RCF I AND II)
PROGRAMS

Program Objective: A credit facility from World Bank made available in
Pesos or US Dollars to private investment enterprises whose viable
operations benefit the countryside. Proceeds of the loan fund will be
directly relent to qualified sub-borrowers of LANDBANK through its
commercial banking lending units (LUs).

Sole Proprietorship
Partnership
Corporation (at least 70% Filipino-owned)
Cooperative/Association

Eligible Projects:
RCF I Medium and long term needs of new or expansion sub-
projects located outside the National Capital Region (NCR) and
Cebu City.
o Agriculture and Agri-related activities;
o Food or agro-processing ventures;
o Manufacturing activity;
o Service-oriented projects that support economic activity;
o Environmental protection-related projects;
o Tourism-related projects;
o Production distribution (trading); and,
o Property development project (socialized & low cost
housing projects; industrial estate development; commercial
building for lease Gross/Total floor area of not more than
15,000 sq. m. including parking and other areas)

RCF II Short, medium, and long term needs of new or
expansion sub-projects and existing sub-projects located
outside the NCR and Cebu City:
o Agriculture and Agri-related activities;
o Food or agro-processing ventures;
o Manufacturing activity;
o Service-oriented projects that support economic activity;
o Environmental protection-related projects;
o Tourism-related projects;
o Product distribution (trading); and
o Property development projects (socialized & low cost
housing projects; industrial estate development; commercial
building for lease Gross/Total floor area of not more than
15,000 sq. m. including parking and other areas.)

Projects located in NCR and Cebu City are eligible provided
these are engaged in agriculture and agri-related activities.

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Loan Purposes:

RCF I
o Working capital (initial and/or incremental);
o Fixed asset investment (excluding acquisition of land); and,
o The fund may reimburse expenditures made within 90 days
prior to date of receipt of loan application.

RCF II
o Working capital (initial and/or incremental);
o Fixed asset investment (excluding acquisition of land);
o Special Financing Package which covers any or a
combination of the following:
Extension of maturity period of existing loan;
Extension of grace period of existing loan; and/or,
Conversion of existing Dollar loan to Peso loan.
o The fund may reimburse expenditures made within 120 days
prior to date of receipt of loan application.

Terms/Requirements:

Loan Amount:
RCF I
o Sub-loan size for Peso Loan
Minimum of P100,000.00;
RCF II
o Sub-loan size for Peso Loan
Minimum of P25,000.00
Maximum of P100.0 Million (for SMEs or large enterprises
engaged in priority projects such as agriculture and
environment-related)
Maximum of P50.0 Million (for other sectors)
o Sub-loan size for Dollar Loan
Minimum of US$25,000.00
Maximum of P100.0 Million or US$ equivalent

Interest Rates:
Floating/Variable rate
Fixed rate (prevailing variable rate plus a premium based on the
term of the loan)

RCF I
o Medium Term Over one year to maximum of five years
o Long Term Over five years but not beyond September 15,
2015.

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RCF II
o Short Term Maximum of one year
o Medium Term over one year to maximum of five years
o Long Term over five years but not beyond December 15,
2018

Security: Tangible collaterals or acceptable guarantees consistent
with current banking practices, pertinent laws and BSP regulations.
All collaterals shall be insured against loss and destruction caused by
fire or other calamities during the term of the loan with the
LANDBANK as the beneficiary.

Fees and Charges:
Commitment Fee: of 1% p.a. of the unavailed loan balance
for loans of P5.0 Million and above
Prepayment Fee: 3% of the amount prepaid

Environmental Requirements: Project to be funded by RCF shall
comply with all laws and regulations of the Philippines. The
Environmental Programs Management Department shall review the
environmental documents to determine if the project is
environmentally acceptable.

Contact Details:

Phone: (632) 405.7309 (632) 551.2200
locals 2448, 2589, 2728, or 2650
Telefax: (632) 405.7640
e-mail: edeguzman@mail.landbank.com

Program Title: ADB AIR POLLUTION CONTROL CREDIT
FACILITY

Program Objective: A credit facility from the Asian Development Bank
available in Pesos to provide financing to private enterprises (sub-
borrowers) for projects that will improve the air quality or reduce air
emissions in the Metro Manila Air Shed (NCR, Rizal, Batangas, Cavite,
Laguna, Quezon, Bulacan, Pampanga, Bataan) and other key cities
(Cebu, Davao, etc.).

Sole Proprietorship
Partnership
Multi-purpose cooperative

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Eligible Projects:
Purchase/installation of air quality monitoring equipment;
Purchase/installation of pollution control equipment;
Procurement of new processes and other source equipment;
and,
Procurement of new and rehabilitation of an existing public
transport fleet.

Loan Purposes: Project-related expenses not exceeding 75% of the
total costs shall be eligible for financing. The fund will be available for:
Fixed asset acquisition and,
Working capital (initial and/or incremental).

Terms/Requirements:

Loan Amount: Maximum of US$5.0 Million or its equivalent in
Pesos

Interest Rates:
Variable rate (with a one-time option to convert into a fixed rate)
Fixed rate (prevailing variable rate plus premium, with no option
to convert)

The on-lending rate to the sub-borrower will be negotiated between
LANDBANK and the sub-borrower.

Maturity / Repayment: Maximum repayment of 7 years with a
maximum grace period of 2 years and 3 quarters on principal
payment.

Security: Fully secured by tangible collaterals as required by
LANDBANK.

Fees and Charges:
Commitment Fee: of 1% or 0.75% per annum
Prepayment Penalty Fee: 0.125% of the principal amount of
loan to be prepaid.

Sub-borrowers Qualifying Criteria:
A debt to equity ratio within the 75:25 benchmark;
A profitability track record of at least three (3) years, although
start-up enterprises are also eligible;
No ownership or labor disputes for the past three (3) years;
An acceptable account profitability ratio of at least 3%;
A satisfactory result in the credit, trade and background
investigation;
Fully secured by tangible collaterals as required by LANDBANK;
Debt service cover of 1.25 times on an average basis over the
term of sub-loan with a minimum of 1.00 time in any year; and,

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Each qualified project generating an annual positive cash flow
equivalent to at least US$100,000.00 shall have a Financial
Internal Rate of Return of at least equal to the cost of capital.

Contact Details:

Phone: (632) 405.7309 (632) 551.2200
locals 2448, 2589, 2728, or 2650
Telefax: (632) 405.7640

Program Title: RENEWABLE ENERGY for WISER and
ACCELERATED RESOURCES DEVELOPMENT
(REWARD)

Program Objectives:
To support the national governments call to develop renewable
and alternative fuel/energy sources; and,
To provide financial assistance to entities that are engaged in
renewable energy projects.

Eligible Borrowers:
Sole proprietorship (100% Filipino-owned)
Partnership (100% Filipino-owned)
Cooperatives
Local Government Units
Non-government organizations with legal personality to borrow

Eligible Projects:
Renewable energy projects such as, but not limited to the following:
Biofuels projects
Biomass-based projects
Hydropower projects
Wind projects (power and non-power)
Geothermal projects
Solar photovoltaic
Solar water heaters
Co-generation projects

Loan Purposes:
Project Feasibility Studies Preparation/Engineering Design
Working Capital
Fixed Asset Investment

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Loan Tenor:
Working Capital - via up to 360-day PN
Permanent Working Capital -maximum of 5 years
Term Loan
o LBP funds - maximum of 10 years
o Special funds - up to 15 years

Repayment Term:
Short Term Loan - Principal and Interest is based on PN
maturity
Term Loan
o Principal - based on projected cash flow, with maximum 2
years grace period
o Interest - monthly or quarterly payment

Collateral:
Loans shall be secured by the object of financing and/or any
Private enterprises (SMEs and large enterprises)
o Chattel Mortgage
o Assignment of Receivables and/or inventories
o J SS of principal stockholders/officers
o Guarantee cover
o Other securities acceptable to the Bank

Cooperatives
o Chattel Mortgage
o Assignment of Receivables and/or inventories
o J SS of principal stockholders/officers
o Guarantee cover

Local Government Units - Assignment of Internal Revenue
Allotment

Contact Details:

Phone: (632) 405.7309; (632) 551.2200
locals 2448, 2589, 2728, or 2650
Telefax: (632) 405.7640
e-mail: edeguzman@mail.landbank.com

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Program Title: COUNTRYSIDE LOAN FUND PROGRAMS
(CLF I, II, and III)

Program Objectives: A wholesale credit facility from World Bank made
available to Participating Financial Institutions (PFIs) for on-lending to
eligible private investment enterprises:
To provide financial support to the rural economies to emerge
stronger from the financial crisis and resume sustained rapid
economic growth in the near term;
To support the government in its effort to alleviate rural poverty
by accelerating private investments in the countryside to boost
productivity, generate employment, and raise income;
To provide further assistance through additional short, medium,
and long term financial resources for viable investments in the
rural areas; and
To generate foreign exchange awareness or savings to improve
the countrys balance of payment position.

Eligible PFIs:
Commercial Banks/Unibanks
Rural Banks
Thrift Banks
Non-bank financial institutions

Sole Proprietorships
Partnerships
Corporations (at least 70% Filipino-owned)
Cooperatives/Associations

Eligible Projects:
Agriculture and agri-related activity;
Food and agro-processing venture;
Manufacturing activity that generates employment/export;
Product distribution activity/Trading;
Service-oriented project that supports economic activity;
Environmental protection project;
Tourism-related project; and
Property development project:
o CLF I & II Industrial Estate Development.
o CLF I, II, & III Socialized and Low Cost Housing Projects,
Commercial Building for lease with a gross/total floor area of
not more than 15,000 sqm., including parking and other
areas.

Note: Projects for funding under the CLF Programs must comply with all
the laws and regulations of the Philippines related to
environmental protection.

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Eligible Sub-Project Location:
CLF I & II Nationwide; sub-projects located in NCR should be
engaged in agriculture and agri-related activities.
CLF III Nationwide; sub-projects located in Cebu City and
NCR should be engaged in agriculture and agri-related
activities.

Loan Purposes:
Working Capital initial or incremental;
Fixed Asset Investment construction, expansion, or
rehabilitation of productive facilities excluding land purchase;
and,
Special Financing Package (for CLF III only) any or
o Extension of maturity or grace period of existing loan
o Conversion of existing dollar loan to peso loan
o Cost overruns due to price escalation/peso depreciation

Terms/Requirements:
Loan Amount:

Minimum Maximum
CLF I P100,000.00 P300,000,000.00
CLF II 100,000.00 300,000,000.00
CLF III 25,000.00 300,000,000.00

Interest Rates:
LANDBANK to PFIs
o Variable Rate Based on Weighted Average Interest Rate
of 91-day Treasury Bills or floor price, whichever is higher.
o Fixed Rate prevailing variable rate plus a premium based
on the remaining term of loan (over 1 year to 5 years 1%;
over 5 years 2%)

PFI to Sub-borrower As negotiated between PFI and the sub-
borrower


CLF I CLF II CLF III
Short Term Up to one year Not available Up to one year.
Medium Term Up to five years. Up to five years. Up to five years.
Long Term Up to year 2011 Up to year 2015 Up to year 2018

Monthly or Quarterly payments.

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Security: Loans shall generally be secured by tangible collaterals (i.e.,
Real Estate/Chattel Mortgage, Mortgage Trust Indenture, Hold-out on
deposits, etc.) or acceptable guarantees consistent with current banking
practices, pertinent laws and BSP regulations.

Contact Details:

Wholesale Lending Department
Phone: (632) 450.7001 551.2200 522.0000
Locals 2707; 2797; 7239; 2468; 2364;
2365
Fax: (632) 528.8503
e-mail: plg@mail.landbank.com

Program Title: COUNTRYSIDE LOAN FUND Credit Support for
the Environment, Agri-Business, and Small &
Medium Enterprises (CLF-CREAM)

Program Objectives: CLF-CREAM aims to support LANDBANKs
priority sectors thru the provision of medium to long-term credit
assistance to the environment-related projects, agri-busines and small
and medium enterprises.

Eligible PFIs:
Commercial Banks/Unibanks
Rural Banks
Thrift Banks
Non-bank Financial Institutions

Sole Proprietorships
Partnerships
Corporations (which are at least 60% Filipino-owned)
Cooperatives or Associations

Eligible Projects/Target Sectors:
Environmental protection projects such as renewable energy
projects;
Agriculture and agri-related productive activities;
Food and agro-processing ventures;
Manufacturing activities;
Product distributions;
Service-oriented endeavors which support economic activity in
the countryside (e.g. transportation, warehousing, post-harvest
facilities, schools, hospitals, communications, and utilities, etc.);

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Tourism-related projects (e.g. hotels, inns, resorts, pension
houses, etc.);
Property Development (e.g. mass housing projects, dormitories,
and commercial buildings for lease); and,
Other projects of SME sector.

Loan Purposes:
Working Capital initial, existing and incremental;
Fixed Assets Investment construction or acquisition of
new/existing productive facilities; expansion and
rehabilitation/improvement of existing facilities (excluding land
acquisition); and,
Lease financing

Terms/Requirements:

Loan Amount:
Minimum P100 Thousand
Maximum P300 Million

Interest Rates:

LBP pass-on to PFIs:
Variable rate:
o Market-oriented based on the average 3-month PDST-F
benchmark rates +spread
Fixed rate:
o Market-oriented based on the average PDST-F
benchmark rates corresponding to the remaining loan term
+spread

PFI to Sub-borrower:
Negotiated freely between PFI and sub-borrower
No cap on PFIs spread

Financing Mix (Based on Total Project Cost):
LBP - 80%
PFI/Sub-borrower - 20%
Total 100%

Repayment Terms:
Based on the project cash flow:
Fixed assets (excluding land acquisition) maximum of 10
years
Working capital maximum of 5 years

Sub-borrowers Asset Size: No cap (except for SME)

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Eligibility Period of Expenditures:
Not more than 180 days from date of initial project expenditures
by the sub-borrower or the PFIs initial financing, whichever
comes later, up to the date of receipt of loan application by
WLD.

Collateral:
Loans must be secured by tangible collaterals or acceptable
guarantees consistent with current banking practice and BSP
regulations.

Environmental Protection:
Sub-projects should comply with applicable Philippine laws and
regulations governing environmental protection.

Contact Details:

Wholesale Lending Department
Phone: (632) 450.7001 551.2200 522.0000
Locals 2707; 2797; 7239; 2468; 2364;
2365
Fax: (632) 528.8503
e-mail: plg@mail.landbank.com

Program Title: DEVELOPMENT ADVOCACY (DevAd) PROGRAM

Program Objectives: DevAd Program is an innovative lending
program for enterprises with viable and sustainable projects, but lacking
in collateral or do not have a track record.

Eligibility Criteria:
Accounts that could not comply with LBPs lending criteria but
with viable projects
Make use of credit enhancement instruments such as market
contracts, post-dated checks and guarantee
Make use of purchase orders or receivables financing

Eligible Borrowers:
Cooperatives
Federations
Associations
Non-Government Organizations (NGOs)
Small and Medium Enterprises
Agri-based entities

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Loan Purpose:
Production Loan
Working Capital
Fixed Assets Loan

Terms/Requirements:

Loan Amount:
Depends on the requirement of the project, maximum of 80% of
the total project cost
Loans against receivables and POs shall not exceed 70% of
their outstanding values

Loan Securities:
Assignment of receivables
Assignment of proceeds of market contract
Guarantee cover
Post-dated checks

Contact Details:

Program Management Department I (PMD I)
Phone: (632) 522.0000 (632) 551.2200 locals 2384
Fax: (632) 528.8542
e-mail: LBP-PMD2@mail.landbank.com

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OPPORTUNITY MICROFINANCE BANK
OMB Building, Robinsons Homes East, Commercial Arcade-1
Robinsons Homes East, Circumferential Road, Barangay San J ose
Antipolo City

Program Title: SME LENDING PROGRAM

Program Objective: To provide financing to small and medium
enterprises for the maintenance and expansion of their business.

Eligible Borrowers:
Sole proprietorships, partnerships, and corporations engaged in
manufacturing, agribusiness, processing and services including
trading and merchandising;
Track record showing profitability for at least 3 yrs;
Engaged in business for the last 3 yrs; and,
Individual borrower must be 21-64 years old at the time of
application.

Loan Purpose:
Working capital for stock of raw materials, supplies & other
requirements needed
Acquisition of productive assets
Construction, expansion, renovation & modernization of new
and existing facilities

Terms/Requirements:

Loan Amount: P151,000.00 to P5.0 Million

Interest Rate: Market rate (diminishing balance)

Maturity/Repayment: 6 months 60 months

Security:
Real Estate Mortgage
Assignment of peso deposits

Mode of Payment: Semi-monthly, monthly, quarterly through post-
dated checks

Contact Details:

Trunkline No.: 630.0141
Berret H. Cabarloc local 229
Carol N. Conde / Fe Q. Nasol local 222

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PHILIPPINE BUSINESS FOR SOCIAL PROGRESS (PBSP)
Philippine Social Development Center
Magallanes corner Real Streets, Intramuros, Manila

Program Title: SMALL AND MEDIUM ENTERPRISE CREDIT
PROGRAM (SMEC)

Program Objectives:
To provide loans to SMEs through its accredited Intermediary
Financial Institutions (IFIs) such as Thrift Banks, Rural Banks,
Microfinance Institutions and Cooperatives as conduit for
lending; and,
To provide business support to IFIs and enhance their lending
capabilities to improve SMEs productivity and competitiveness.

Eligible Borrowers: Micro, small and medium enterprises who meet the
following qualifications:
For sole proprietorship - the owner must be a citizen or
permanent legal resident of the Philippines;
For corporation, partnership or business organization -
Philippine nationals must own more than 50% of the enterprise;
Have principal place of business in the Philippines;
Have a 100% privately-owned business with total assets of
between P150 Thousand to not more than P100 Million
excluding land value.

Loan Purposes: To finance investments of new and expansion of
existing businesses for:
acquisition of fixed assets such as land, building, machinery and
equipment;
payment for related services such as equipment installation,
testing and start-up; and,
working capital.

Loan Amount, Interest, Repayment Terms and Security:
Subject to discussion/negotiation by the Borrower with the IFI.

Contact Details:

Unit Head
Phone: (632) 527.7741 to 48
Telefax: (632) 527.3751
e-mail: pbsp@pbsp.org.ph
URL: www.pbsp.org.ph

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PHILIPPINE EXPORT-IMPORT CREDIT AGENCY (PHILEXIM)
17th Floor, Citibank Tower, Citibank Plaza, Valero Street, Makati City

DIRECT LENDING PROGRAMS (DLP)

Program Title: SHORT TERM DIRECT LENDING PROGRAM
(ST-DLP)

Program Objective: To extend short-term loans to small and medium-
sized exporters to fund their preshipment and postshipment export
financing requirements.

Eligible Borrowers:

Experience Requirements
Direct Exporter
o Successful export performance in the immediately
preceding year in a particular product area to be financed
with a minimum export volume of US$50,000.00 within said
period; and,
o At least 51% of revenues in the immediately preceding year
are derived from export sales of its products or services.
Indirect Exporter
o Indirectly exporting in the immediately preceding year in the
particular product area to be financed and,
o Profitable operations in the immediately preceding year.

Credit Record
No substantial derogatory record on firm, its principals and
officers;
Satisfactory credit performance;

Financial Standing
Minimum networth of P500,000.00; and
Maximum debt-equity ratio of 4:1 after financing.

Types of Credit Accommodation:
Transactional Loan case-to-case preshipment working capital
loans, availment of which shall be against export/domestic
L/C(s)/CPO(s)/CSC(s) or purchase of export/domestic bills or
postshipment loans.
Revolving Line one-year revolving credit line that may be
availed of as in transactional loan.

Terms/Requirements:
Loan Amount:
Preshipment Working Capital Loan Actual production needs
but not to exceed 80% of the value of the Letter of Credit (LC)/
Confirmed Sales Contract (CSC) or maximum of P20.0 Million,
whichever is lower.

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Postshipment Loan
o Maximum amount shall be the outstanding value of the
corresponding preshipment working capital loan.
o In cases where the export/domestic bill and/or receivable
have no corresponding preshipment loan, maximum
amount shall not exceed 80% of the value of the
export/domestic bill/receivable or P20.0 Million, whichever
is lower; and,
o Aggregate loan limit at any given time for both pre and
postshipment financing shall be P20.0 Million.

Interest Rate: PhilEXIM lending rate to be determined upon loan
availment.

Tenor of Credit Accommodation:
Preshipment Working Capital Loan Maximum tenor of 180
days, the Promissory Note maturity shall be co-terminus with
the expiry date of the relative export/domestic LC(s) or the
delivery date of the CPO(s)/CSC(s). A 15-day allowance may
be granted to cover transit time for receipt of proceeds.
Postshipment Loan Maximum tenor of 40 days from purchase
of export bill or expiry of issuance period or maturity date of
underlying export receivable.

Minimum Collaterals Required:
Real Estate and/or Chattel Mortgages;
Suretyship Agreement of principals or major stockholders of the
corporation;
Deed of Assignment on the following when applicable:
o inventory of raw materials, goods in process and finished
goods financed by the loan as well as inventory not
previously assigned to a third party
o proceeds of domestic/export L/C, CPO, CSC, export bill,
and/or domestic/export receivables from a creditworthy
buyer
Endorsement in favor of PHILEXIM;
o All Risk marine insurance coverage (for postshipment
loans)
o All Risk non-life insurance coverage
Postdated Checks; and other collaterals.

Processing Fee: One-half ( ) of 1 percent of approved loan/line or
P5,000.00 whichever is higher, payable as follows:
Non-refundable 20% upon loan application and computed
based on the loan amount applied for; and,
80% to be deducted from the proceeds of the initial loan
availment.

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Taxes: Applicable taxes on availments, renewals, extensions, etc.,
and on all fees shall be borne by the borrower.

Documents Required:
Duly accomplished/notarized Application of Credit
Accommodation Form and Client Information Sheet;
Brief history/background of the company;
Income Tax Returns (ITRs) and audited financial statements
(F/S) for the last two (2) years, if applicable, and interim F/S if
the latest audited statement is more than six (6) months old;
ITRs and statements of assets and liabilities of sureties for the
last two (2) years, if applicable;
Cash flow projection after financing;
Bank statement(s)/passbook(s) to support cash balance of the
latest available F/S;
Bank certification of the export negotiations for the preceding 12
or 24 months;
List of fixed assets and aging of accounts receivables and
payables as of latest F/S;
o DTI Registration and Business Permit for the current year;
For Partnership/Corporation:
o Certified list of officers and specimen signatures
o SEC Registration, Articles of Incorporation/Partnership and
By-laws duly certified by the Corporate Secretary
o Duly notarized Board Resolution authorizing officers of the
company to sign, endorse and/or negotiate loan as well as
open a current or a savings account with the conduit bank
Copy of the title(s), tax declaration, tax receipt, location plan
and other documents covering real estate offered as collateral;
Copy of invoices and other documents covering chattels offered
as collateral; and
Other documents that may be required depending on evaluation
and for clarification purposes.

Conduit Banks

Conduit banks of PhilEXIM shall assist in the implementation of the
program by extending the following international trade services to
clients/accounts referred by PhilEXIM:
Opening of import letters of credit; and
Negotiation of export documents.

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Program Title: MEDIUM AND LONG TERM DIRECT LENDING
PROGRAM (MLT-DLP)

Program Objective: To grant medium and long term loans to exporters
to finance asset acquisition, expansion, modernization of production
techniques, improvement of production capacity and permanent working
capital.

Eligible Exporter-Borrowers:
Must be engaged in processing, production, manufacturing,
marketing or trading of products or rendering of services directly
or indirectly for export;
Directly or indirectly exporting the product which is the subject
of financing for at least two years;
Satisfactory credit performance based on bank checkings and
no substantial derogatory record;
Maximum debt-equity ratio of 3:1 after financing.
Minimum networth requirement of P500,000.00; and
Profitable operations in the immediately preceding two (2)
years.

Loan Purposes:
Purchase of machinery and equipment;
Acquisition or construction of plant and building;
Permanent working capital; and,
Acquisition of land to be used as project site.

Terms/Requirements:

Loan Amount: Actual needs but in no case more than P40.0 Million.
However, not more than 50% of the loan may be used in the
acquisition of land to be used as project site.

Interest Rate: PHILEXIM lending rate which may be fixed or on
floating rate basis to be determined upon loan availment.

Medium Term Loan More than one (1) year up to five (5)
years, depending on the purpose of the loan.
Long Term Loan More than five (5) years up to ten (10) years,
depending on the purpose of the loan.

Grace periods on the payment of principal may be allowed.

Security:
Lien on project assets to be acquired/financed;
Real Estate Mortgage and/or Chattel Mortgage;
Suretyship Agreement of principals or major stockholders of the
corporation;
Assignment of export proceeds;

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Endorsement in favor of PhilEXIM all applicable insurance
coverage on mortgaged assets; and
Other acceptable collaterals, such as but not limited to:
o Export Credit Insurance (ECI)
o Assignment of marketable securities or instruments

Processing Fee: A non-refundable processing fee of of 1% of the
amount applied for or P5,000 whichever is higher, payable upon filing
of application.

Documents Required:
Duly accomplished Application of Credit Accommodation Form
and Client Information Sheet;
Brief history/background write-up of the company;
Income Tax Returns (ITRs) and audited financial statements
(F/S) for the last (2) years, if applicable, and interim F/S, if the
latest audited statement is more than six (6) months old;
Bank statements/passbook(s) to support cash balance as of
latest F/S;
Schedule of fixed assets and aging of receivables and payables
as of latest F/S;
Bank Certification of export negotiations for the past year;
Feasibility Study or Business Plan with financial projections
corresponding to the proposed term of the loan (including cash
flow after financing)
o DTI Registration and Business Permit for the current year.
For Partnership/Corporation:
o Certified list of officers and specimen signatures;
o SEC Registration, Articles of Incorporation/partnership and
By-laws duly certified by the Corporate Secretary; and
o Duly notarized Board Resolution authorizing officers of the
company to sign, endorse and/or negotiate loan as well as
open a current or a savings account with the conduit bank.
Copy of title(s), tax declaration, tax receipt, location plan and
other documents covering collaterals offered; and,
Other documents that may be required depending on evaluation
and for clarification purposes.

Conduit Banks

Conduit banks of PhilEXIM shall assist in the implementation of the
program by extending the following international trade services to
clients/accounts referred by PhilEXIM:
Opening of import letters of credit; and
Negotiation of export documents.

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Program Objective: The program is a financing strategy collaborated
by PhilEXIM and other government financial institutions (GFIs) to
provide SMEs access to financing under a uniform lending structure.

Loan Purpose:
Short-term Loans
o Export Financing for export packing credit
o Revolving Credit Line for temporary working capital
Long-term Loans for purchase of equipment, building
construction, purchase of lot, purchase of inventories

Eligible Borrowers:
Small and medium exporters in all industries except trading of
imported goods, of liquor and cigarettes, and extractive
industries;
At least 60% Filipino-owned, whose assets are not more than
P100.0 Million, excluding the value of the land or subject to
ownership rules as defined under existing Philippine laws for
specific industries;
Debt-equity ratio of at most 80:20 after the loan and at most
70:30 if franchisee
Positive income for the last year (if past years income is
negative, the average income of past 2 or 3 years should be
positive).

Terms/Requirements:

Loan Limits:
Short-term Loans - up to 70% of the value of LC/PO (for export
financing) or working capital requirement (for revolving credit
line); maximum of P5.0 Million
Long-term Loans up to 80% of the incremental project cost;
maximum of P5.0 Million

Interest Rate: SULONG lending rate repriced every quarter by the
SULONG Finance Committee.

Maturity / Repayment: Maximum of 1 year for short-term loans;
Maximum of 5 years, inclusive of maximum 1 year grace period on
principal monthly amortization

Security/Collateral:
Postdated Checks.
Registered/unregistered Real Estate Mortgage/Chattel
Mortgage.
Assignment of LC or CPO

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Assignment of life insurance
Guarantee cover
Corporate Guarantee (if franchisee)
Assignment of lease rights (if franchisee)

The Program will not decline a loan only on the basis of inadequate
collateral. However, the borrower must be willing to mortgage any
available business and personal collateral, including assets to be
acquired from the loan to secure the borrowing.

Evaluation and Service Fees:
Short-term Loans - P2,000 for every P1.0 Million plus front-end
fee of of 1% of approved loan
Long-term Loans - P2,000 for every P1.0 Million plus front-end
fee of of 1% of approved loan and commitment fee of 0.125%
of unavailed balance.

Program Title: WHOLESALE LENDING PROGRAM

Program Objectives:
To provide credit and capability building assistance to the SME
export sector;
To showcase that SMEs can be bankable given the provision of
an enabling environment and relevant financial and
development support services;
To upgrade the capabilities and empower the exporters and
their organizations in their field of governance, leadership and
support services to the members; and,
To greatly reduce exporters dependence on informal creditors
that charge prohibitive rates.

Mode of Credit Delivery: PhilEXIM shall provide wholesale funds to
partner conduits which, in turn, retail lend the same to its member
exporters/clients.

Eligible Borrowers/Conduits:

Financial Institutions rural banks, coop rural banks, thrift
banks, development financing companies:
o Must be SEC-registered, and has been operating for the
past seven (7) years, 3 years of which is profitable
o With vision, mission and goals that are supported by an
appropriate organizational structure and strong
leadership
o With complete and up to date financial records,
accounting system and built-in internal control

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o Latest CAMELS Rating by the Bangko Sentral ng
Pilipinas of at least 3 or if lower, the major exceptions
have been addressed
o Accredited by other financial institutions as conduit of
their wholesale funds with their accounts rated as up to
date or update with current in status
o With successful credit programs exhibiting its ability to
properly implement programs and manage loan portfolio
with maximum past due rate of 20%
o Total asset of at least P50 Million
o Has a debt-equity ratio of 85:15
o Capital to Risk Asset Ratio of at least 10%
o No derogatory findings on key officers and members of
the Board
Exporters Association primary associations, federation,
chambers, chapters or cooperatives:
o Duly registered with SEC/CDA for at least (five) 5 years,
3 years of which have been active in various projects that
build up membership and organizational strength with
permanent office and operation facilities for activities and
meetings
o Has standing committees with clearly defined functions
and respective goals
o Has vision, mission and corporate objectives, well
understood and supported by its members and officers
o Has complete and well managed records, accounting and
internal control system; plus membership directory,
written policies, board resolutions and minutes of
committee meetings
o With good leadership that practices the fundamentals of
good governance
o With committed and active membership that are direct
exporters, import-substitute producers or their
subcontractors
o Has acceptable membership fee structure with at least
85% collection rate as permanent source of funds for the
organizations operation activities and projects
o Has total asset of at least P500 Thousand and available
working capital for operations of P200 Thousand
o Has debt-equity ratio of not more than 60:40 at the time
of accreditation/application
o Board members and key officers have very satisfactory
credit record.

Eligible End-Borrowers:
Direct Exporters producers, consolidators and traders
Indirect Exporters producers of import substitutes, suppliers of
packaging materials and other inputs
Sub-contractors

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Types of Credit Facility and Purposes:
For Financial Institutions Group
o One year revolving credit line for short-term working
capital requirements
o Two to three years medium term loan for permanent
working capital and equipment acquisition
o Five-year long term loan for fixed asset acquisition and
improvement
For Exporters Organizations Group
o One year revolving credit line for the following purposes:
- check rediscounting to finance POs and LCs of
end-borrower/member
- acquisition of small equipment and tools needed in
operations
- acquisition of common service facility (machinery
or equipment) to be leased out to subcontractors
on per job order basis to ensure standard quality
outputs, maximize productivity and lower
production cost
- improvement of workplace, storage or warehouse
facility
- advertisement and promotion design, packaging
and other quality maintenance and upgrading costs
- participation of member exporters in local and
international trade shows
o Subject to 2 years very satisfactory performance of check
rediscounting facility and established policies and systems
in place, the medium and long term loans may also be
granted.

Terms/Requirements:

Credit Limit:
Financial Institutions minimum of P2.0 Million and maximum
of P40.0 Million
Exporters Organizations minimum of P1.0 Million and
maximum of P25.0 Million
Single borrowers limit (SBL) for end borrower is P500
Thousand

Financial Charges:
For Exporters Organizations One Year Revolving Line
o Interest Rate 1% per month
o Application Fee P3,000 or of 1% of applied amount
whichever is higher
o Processing Fee P5,000 or of 1% of approved line
whichever is higher (One time charging per credit line
approved)

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For Financial Institutions One Year Revolving Credit Line
o Interest Rate 10% per annum
o Service Fee 1% payable upfront
whichever is higher
approved)
For Financial Institutions 2-5 Years permanent working
capital/equipment loan
o Interest Rate 12% per annum
o Service Fee 1% payable upfront and every start of year
based on outstanding balance
whichever is higher
approved)

For Exporters Organizations One Year Revolving Credit Line
one time payment based on maximum 1 year Promissory Note
for the principal and quarterly payment for interest
For Financial Institutions One Year Revolving Credit Line one
time payment based on maximum 1 year Promissory Note for
the principal and quarterly payment for interest
For Financial Institutions 2-5 Years permanent working
capital/equipment loan principal and interest payable in equal
installments every 6 months

Security/Collateral:
Continuing Assignment of receivables, checks being
rediscounted, POs, LCs
Post dated checks of conduits to be issued for every availment
Other acceptable collaterals like Real Estate Mortgage, Chattel
Mortgage, insurance policies of end borrowers required by
conduits, if any
Suretyship Agreement of majority of Board Members and
Treasurer of Exporter Organizations
Suretyship Agreement of at least two (2) key officers of
Financial Institution
Hard collaterals are not required.
The conduit is given the prerogative to have its own collateral
requirement.

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Soft Loan Facility For Capacity Building

Loan Purpose:
Building up of data bank and members profile
Common service/business support facility improvements
Marketing and networking
Upgrading of MIS, accounting and internal control systems

Loan Amount: Maximum of 10% of the approved revolving credit line
of conduit subject to 80:20 sharing of cost.

Financial Charges:
Interest Rate 5% per annum
Service Fee 1% per annum deductible upon loan release and
every year thereafter based on outstanding balance

Repayment Term:
Three (3) years payable in ten (10) quarterly amortizations
inclusive of six (6) months grace period for asset
acquisition/improvements
One (1) year, in four (4) quarterly amortizations for training
seminar costs, marketing and networking, IT
installation/improvement

Certified true copy of the Certificate of Registration (COR) from
BSP and Securities of Exchange Commission (SEC) in case of
Financial Institutions, COR from the Cooperative Development
Authority (CDA) in case of cooperatives, COR from SEC in case
of Exporter Organizations
Certified true copy of Articles of Cooperation for Cooperatives,
and Articles of Incorporation and By-Laws for Financial
Institutions and Exporter Organizations
Company Business Information Sheet with attached
Organization Chart
List of Principal Stockholders and their stockholdings, if
applicable
Notarized Personal Information Sheet of the Board of Directors
and Officers with photos
Audited FS for the last three (3) years plus latest interim FS at
the time of application
Corporate Vision, Mission and Goals
Board Resolution certified under oath by its Corporate/Board
Secretary approving the application for accreditation and
availment of line, execution of all loan agreements, and
designating the authorized representative/s to sign all loan
documents.

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GUARANTEE PROGRAMS

Program Title: PRESHIPMENT EXPORT FINANCE GUARANTEE
(PEFG) and POSTSHIPMENT EXPORT RISK
GUARANTEE (PERG) PROGRAMS

Program Objectives:

PEFG - To assist small and medium-sized export enterprises,
particularly those who are collateral short, in obtaining or expanding their
preshipment export working capital financing through a guarantee cover.

PERG - To provide small and medium-sized direct exporters with a
complementary postshipment finance facility that will encourage PFIs to
purchase export bills, pay off outstanding preshipment export loans as
well as extend any form of receivable financing to such exporters
pending actual remittance of payment by overseas buyers. The PERG
Program completes the package of export credit guarantee facilities from
the production stage to shipment and until actual collection.

Facilities: Both PEFG and PERG have two (2) separate facilities
namely, the:
Export Trade Finance Guarantee (ETFG) - for the new and
beginning exporters
Revolving Export Loan Guarantee (RELG) for the more
experienced exporters

Loan Purpose:
PEFG for purchase of raw materials and/or to cover
production costs for a specified export product. It can be
described as one or a combination of Foreign Input Loan (FIL),
Domestic Input Loan (DIL) and Value Added Loan (VAL).
PERG purchase of export bills; settlement of outstanding
availments against a preshipment export credit facility while
awaiting proceeds of export receivable; or postshipment financing
to cover the usance period or credit extended to the buyer.

Guarantee Coverage: Ninety percent (90%) maximum

Eligible Borrowers:
Direct or Indirect Exporters;
Majority-owned Filipino enterprise;
Export goods and services;
Must not have any derogatory record;
Experience:
o ETFG
New-to-Export Firm:
- Annual domestic sales of 5x the value of the export L/C
to be financed
- Profitable operation
- Principal/Key officers successfully completed 2 L/C
transactions

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Beginning Exporter Firm:
- CEO/Principal: 2 years exporting experience in the
same product area and successfully completed 2 L/C
transactions totaling 150% of the export loan
- Firm: Operating for at least 6 months
Indirect Exporter:
- Profitable operations in the immediately preceding 24
months
o RELG
- 2 years exporting experience with export sales of at
least US$50,000.00
- Profitable operations for the immediately preceding 2
years and at least 51% of revenues is derived from
exports
- Profitable operations in the immediately preceding 24
months for indirect exporters
Maximum debt to equity ratio of not more than 5:1 after
financing for both ETFG and RELG;
Minimum networth of P250,000.00 for ETFG; and
Minimum networth of P500,000.00 for RELG.

Terms / Requirements:

Loan Amount:
Export Trade Finance Guarantee (ETFG)-Transactional Loan
o Minimum of P150,000.00 or its equivalent in US dollars and
a Maximum of P9.0 Million or its equivalent in US dollars
Revolving Export Loan Guarantee (RELG)
o Minimum of P150,000.00 or its equivalent in US dollars and
a Maximum of P20.0 million or its equivalent in US dollars

Interest Rate: Determined by the bank, usually at market rate.

Maturity / Repayment: Maximum 180 days for ETFG; Revolving
for 1 year for RELG

Security (Minimum):
ETFG
o Assignment of inventories/Proceeds of Export/Domestic L/C;
o Insurance coverage on goods purchased;
o Trust receipt, if applicable
o Personal guarantee(s) of principal(s) with conforme of
spouse, if legally married.
RELG
o Assignment of Proceeds of Export/Domestic L/C, Confirmed
Purchase Order (CPO) or Confirmed Sales Contract (CSC)
or Export Bill;
o Personal guarantee(s) of principal(s) with conforme of
spouse, if legally married;

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o Assignment of All Risk marine insurance coverage (for
PERG);
o Letter of guarantee/agreement/undertaking by the borrower
to repay the Export Bill/Loan in the event that no collection is
received from the foreign buyer (for PERG).

Guarantee Procedures:
Loan Value - Maximum of 100% of export/domestic L/C, CPO or
CSC value for both ETFG and RELG.
Types of Disbursement (for ETFG and RELG)
o Import L/C / TR Facility for Foreign Input Loan (FIL)
o Domestic L/C / TR Facility or disbursements for local raw
material purchases
o Value Added Loan (VAL) to finance overhead expenses

Guarantee Fees:
Processing Fee of 1% of guaranteed portion for ETFG; 1%
of guaranteed portion for RELG
Utilization Fee Minimum of P500.00 or 2% per annum of
guaranteed portion, whichever is higher for ETFG; minimum of
P500.00 or 1% per annum of guaranteed portion, whichever is
higher for RELG

Program Partners: Allied Banking Corporation, Asia Trust Development
Bank, Banco De Oro - EPCI, Bank of the Philippine Islands, Bank of
Commerce, China Banking Corporation, Chinatrust Commercial Bank
Corporation, Development Bank of the Philippines, Export and Industry
Bank, Land Bank of the Philippines, Maybank Philippines, Inc.,
Philippine Bank of Communications, Philippine Veterans Bank, Planters
Development Bank, Rizal Commercial Banking Corporation, Security
Bank Corporation, The Manila Banking Corporation, Union Bank of the
Philippines.

Program Title: TERM LOAN GUARANTEE PROGRAM

Program Objectives:
To assist exporters to increase their productive capacity and
gain a stronger foothold in the international market through
access to term financing for the purpose of upgrading their plant
facilities.

Loans Eligible for Guarantee Coverage:
Loans for the purchase of machineries and equipment;
Plant/building acquisition, construction, improvement/expansion;
Acquisition of land to be used as project site (but not to exceed
50% of the loan); and,
Permanent working capital loan.

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Eligible Borrowers:
Any exporter, whether a single proprietorship, partnership or
corporation with at least 51% of subscribed capital owned by
Filipinos;
Engaged in processing, production, manufacturing and
marketing or trading of products or rendering services, directly
or indirectly for export;
Has been exporting for at least one (1) year in the particular
product area
Must have no derogatory credit record, unsatisfactory credit
dealings, record of loan misuse or default based on bank
checkings on the exporter or its principals and officers;
Must have a minimum networth of P250 Thousand;
Must have a debt to equity ratio of not more than 3:1 after
financing;
Financial statements must show profitable operations in the
immediately preceding year.

Guarantee Coverage: Eighty five percent (85%) of principal plus
interest

Terms/Requirements:

Loan Size Limit: TLGP will cover loans up to P50 Million

Maturity:
For loans to finance the purchase of fixed assets/capital
equipment:
o P1.0 Million or less more than1 year up to 3 years
maximum, inclusive of 3 to 6 months grace period on
principal; and
o Over P1.0 Million more than 1 year up to 5 years
maximum, inclusive of 3 months to 1 year grace period on
principal
For loans to finance permanent working capital more than 1
year up to 5 years maximum, inclusive of 3 months to 1 year
grace period on principal
For loans to finance plant/building acquisition, construction,
improvement or expansion more than 1 year up to 10 years
maximum, inclusive of 3 months to 2 years grace period on
principal

Collateral:
Personal guarantee of the borrower or company principals
Lien on project assets to be financed
Insurance coverage duly endorsed to the bank on all insurable
assets to be mortgaged
Other acceptable collaterals based on evaluation such as but
not limited to real estate, chattel and acceptable marketable
instruments.

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Fees and Other Charges:
Guarantee fee of 2% per annum on the guaranteed portion of
the outstanding loan
Processing fee of % of the guaranteed amount or P5,000
whichever is higher; non-refundable.

Procedure for Guarantee Application:
The exporter applies for a term loan with a PFI.
The PFI evaluates the exporters eligibility for a term loan.
Upon approval of the term loan, the PFI applies with PhilEXIM
for guarantee coverage of the loan by submitting a Loan
Guarantee Request (LGR).

Documentary Requirements for Guarantee Application:
Duly accomplished Loan Guarantee Request (Form 1)
Banks evaluation, credit analysis and approval memoranda
Copy of credit investigation on the borrower and principal
owners/officers
Duly notarized Client Information Sheet and Borrowers
Information Sheet
Borrowers authorization for credit investigation
DTI Registration / SEC Registration / Articles of Incorporation
and By-Laws
List of present stockholders with their corresponding capital
subscription and amount paid-in duly certified by the Corporate
Secretary
Copies of previous years audited Financial Statements and ITR
Interim Financial Statement if latest audited FS is more than 6
months old
Projected Financial Statement (including cash flow) on annual
basis of the project over the period of the guarantee, complete
with supporting schedules.

Program Title: GENERAL FACILITY PROGRAM

Program Objectives:
To provide guarantees on loans to medium and large exporters
and other domestic enterprises to finance export, manufacture,
rendering of services and/or any other activity which promotes
the export and import substitution industries.
To provide guarantees on foreign loans to finance
developmental projects, specially export-oriented industries,
BOI-registered firms, public utilities and other industries
encouraged by government policy.

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Loan Purpose:
Working capital
Acquisition, construction and improvements of fixed assets for
expansion
Project financing

Eligible Borrowers:
Existing entities and/or start-up projects for development
purposes having special regard to the needs of export-oriented
industries, industries registered with the BOI, public utilities, and
other industries the promotion of which is encouraged by
government policy (i.e. infrastructure, information and
communication technology, tourism, agri-modernization;
Filipino contractors with approved service contracts abroad;
No derogatory record;
Must have a debt-equity ratio of 3:1 maximum after financing.

Types of Loans Covered: Pre-shipment loans, omnibus facilities or
term loans. The loans must enhance asset value in the firm (e.g.
additional operating capital or fixed assets). Refinancing or restructuring
of existing debts is not allowed.

Terms/Requirements:

Guarantee Coverage:
90% of the approved loan in case of working capital loans
100% of the approved loan in case of term loans

Maturity: Based on project requirement and as approved by the
lender.

Collateral: Based on project requirement and as approved by the
lender.
Lien on assets being financed
Continuing surety of company principals
Other collateral depending on overall risk assessment by
PhilEXIM

Procedure for Guarantee Application:
The prospective borrower may either apply for a credit facility
(working capital or term loan) with a bank, or may go directly to
PhilEXIM.
In case the borrower approaches a bank:
o The bank evaluates the application, undertakes credit
investigation and analysis, and if the results are favorable,
endorses the account to PhilEXIM for guarantee coverage.
o PhilEXIM undertakes its own evaluation and presents the
account for approval of its Credit Committee or its Board of
Directors. Upon approval, PhilEXIM issues a Letter of
Guarantee.

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In case the borrower goes to PhilEXIM directly, the Corporation
evaluates the application and if results are favorable, presents
the account for approval of the Credit Committee or Board of
Directors. If approved, PhilEXIM sends a notice of approval to
the borrower.

Processing of the application takes from one to two months,
provided all the documentary requirements are complied with.

Documentary Requirements for Guarantee Application:

The following documents should be submitted to PhilEXIM and to
the bank:

For working capital loans:
o Registration papers (SEC, BOI or BSP)
o Latest audited financial statements, if available
o Interim financial statements, if available
o Track record of exports
o Projected exports
o Other documents that may be required.

For term loans (to finance fixed assets):
o Registration papers (SEC, BOI or BSP)
o Latest audited financial statements, if available
o Interim financial statements, if available
o Project Plans
o Pro-forma invoice/bill of materials and specifications
o Copies of titles, tax declarations, location plan and tax
receipts covering collaterals offered
o Other documents that may be required

Program Title: OMNIBUS LINE UNDER THE GENERAL FACILITY
PROGRAM

Program Objectives:
To provide guarantees on short-term trade-related loans, such
as Export Packing Credit Line (EPCL), Import LC/TR line and
Export Bills Purchase Line (EBPL), Import LC/TR Line with
disbursements against Export Letters of Credit (ELCs),
Confirmed Purchase Orders (CPOs), or Confirmed Sales
Contracts (CSCs).

Line/Loan Purpose: Preshipment and postshipment working capital
loan proceeds can be used to purchase imported or domestic inputs in
the manufacture of an export product, and to other related
manufacturing expenses including direct labor cost.

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Eligible Users:
Large exporters and prime accounts with Investment Priority
Plan (IPP) content;
No derogatory record;
Must have a debt-equity ratio of 3:1 maximum after financing.
Two years profitable financial history

Terms/Requirements:

Guarantee Coverage:
Maximum of 90% of principal plus interest for Prime
Maximum of 70% of principal plus interest for below Prime

Loan Amount: At least P50.0 Million, but not more than the Single
Borrowers Limit of the Bank for Prime Accounts; up to P300.0 Million
for below Prime Accounts or Single Borrowers Limit whichever is
lower.

Interest Rate: This is charged by the Lender.

Fees:
Application Fee P100 Thousand payable up-front; non-
refundable
Processing Fee 1/8 of the guaranteed amount, payable prior
to issuance of the guarantee (i.e. after approval but before
execution of agreements)
Out-of-pocket Expenses for the account of the applicant,
payable up-front (i.e. before approval of the guarantee)
Guarantee Fee maximum 2.5% per annum of guaranteed
amount
Amendment Fee P100 Thousand per amendment

Maturity: Revolving for 1 year.

Collateral:
Assignment of proceeds of export L/C, CPO or CSC
Real Estate Mortgage and/or Chattel Mortgage
Personal guarantee(s) of principal(s)

Application Procedure:
The exporter-borrower applies for a credit line with a bank.
The bank evaluates the exporters eligibility for a credit line
facility.
Upon approval, the bank endorses the account to PhilEXIM for
guarantee cover by submitting a Loan Guarantee Request
(LGR) together with documents.
PhilEXIM conducts due diligence and if the account passes the
eligibility criteria, recommends it for approval.

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TRADE CREDIT INSURANCE PROGRAM

Program Title: EXPORT CREDIT INSURANCE PROGRAM

Program Objectives:
Export Credit Insurance is a unique export developmental tool,
which enables exporters to manage the risks of non-payment of
export shipments on credit and protect them against the
unexpected.

Export Risks Shared by PhilEXIM:
Buyer insolvency or bankruptcy
Protracted delay in payment
Non-conversion of currency or inability to transfer funds
Cancellation of import licenses and permits
Occurrence of war, rebellion, revolution and/or other similar
disturbance in the buyers country

Commercial Risk Only Policy is also available to cover potential losses
resulting from buyer insolvency or bankruptcy, and protracted delay in
payment.

Eligible Policyholder: PhilEXIM cover is available to entities domiciled
and registered in the Philippines.

Eligible Exports:
Export goods must be produced in the Philippines and contain
at least 20% local content based on FOB value.
Provision of services such as software development, installation
and other engineering works/services abroad.

Eligible Currency: Shipments to be covered must be payable in any of
the currencies declared eligible for international reserves by the Bangko
Sentral ng Pilipinas (BSP).

Coverage and Validity:

Insurance Cover: 85% of the value of unpaid export receivable

Credit Terms: Up to 180 days.

Validity: The policy is valid for 1 year from the date of issue.

Cost of Insurance:

Processing Fee: P2,000 (none for renewals)

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Buyers Credit Limit Application Fee: EUR 72 per buyer to be
enrolled

Premium rate is based on: type of policy selected, estimated amount
of exports to be insured, payment terms, type of goods being
exported, countries involved, approved credit limits, buyer credit
risks.

Other Key Benefits:
Increase sales by making it easier for them to enter into new
markets, expand existing ones and accept larger orders.
Enhance their competitiveness by enabling them to offer
more flexible payment terms to its foreign buyer.
Secure working capital as proceeds of the policy can be
assigned to their bank as collateral.
Protect cash flow and corporate viability by providing a
credit control and risk management system and timely
assessment and payment of eligible claims for losses.

Contact Details:

Business Development Group (BDG)
Trunk Line: (632) 848.1900

Direct Lines:
BDG 1 - 893.4741 893.4510 848.1925
BDG 2 - 893.4758 893.7292 848.7269

Fax:
BDG 1 - 893.4510 848.1925
BDG 2 - 893.4758 893.4474 848.7309

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PHILIPPINE NATIONAL BANK (PNB)
PNB Financial Center, Roxas Boulevard, Pasay City

Program Title: SMALL BUSINESS LOAN (SBL)

Program Objective: To increase its support to local entrepreneurs in
Metro Manila and key provincial centers all over the country.

Eligible Borrowers: Companies profitably engaged in the business to
be financed for at least three (3) years.

Priority Sectors :
Food-related businesses Includes processed/packed meat
products, food distribution, biscuits and snack foods,
restaurants, retail food stores, and local food franchises.
Transport and storage cold storage, warehousing, distribution
and transport of consumer goods, and public transport.
Services and Trading gas station and automobile service
operations, security and manpower, photo developing, food-
related, hardware supplies, botica and pharmaceuticals, retail
sale of consumer goods, and wholesale distribution.
Light manufacturing/processing activities.

Loan Purposes:
Working Capital to finance receivables and inventory build-up,
and day-to-day business expenditures;
Upgrading or acquisition of machinery and equipment; and
Construction/expansion or modernization of plant facilities.

Terms/Requirements:
Loan Amount: P1.0 Million - P 10.0 Million subject to the lowest of
the following:
Loan value 60% of appraised value of the collateral
Computed amortization as against net income
Will also depend on actual requirement of the business
Interest Rate: May be fixed for one year ; no hidden charges

Maturity / Repayment: One to five years with equal monthly
payments covering interest plus principal using post dated checks or
auto-debit arrangement

Security: Real Estate with classification as residential, commercial,
and industrial property.

Contact Details:
Mr. Caesar M. Leopando or Ms. Tina V. Osias
Small Loans Division
Phone: (632) 526.3323 (632) 891.6040 local 2274, 2269, or 2063
or the local branches of the Philippine National Bank.

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PLANTERS DEVELOPMENT BANK (PDB)
314 Sen. Gil J . Puyat Avenue, Makati City
Phone: (632) 884.7600 or 884.7800

Program Title: REVOLVING CREDIT LINE

Program Objective: To provide short-term loans to SMEs to finance
their working capital requirements.

Eligible Borrowers:
Individuals, Partnerships and Corporations with asset size of not
less than P1.5 Million.
Companies engaged in the business for at least three (3) years.
Companies operating profitably for the last three years.

Loan Purpose: For Working Capital requirements such as receivable
financing, purchase of additional inventory, etc.
Terms/Requirements:
Loan Amount : Minimum of P5.0 Million; Maximum of P50.0
Million.

Interest Rate : Prevailing bank lending rate, reviewed
monthly.

Maturity : One year line subject to renewal.

Mode of Payment : Interest payable monthly; principal at maturity.

Security : Real Estate Mortgage (REM) or a combination
of REM/ Chattel Mortgage.

Program Title: TERM LOAN

Program Objective: To provide loans for fixed asset acquisition and
permanent working capital requirements.

Eligible Borrowers:
Individuals, Partnerships and Corporations having an asset size
of not less than P1.5 Million;
Companies engaged in the business for at least three (3) years;
Companies operating profitably for the last three (3) years.

Loan Purposes:
For Permanent Working Capital.
Fixed Asset Acquisition (purchase of machines, construction/
renovation of building/plant facilities)

Terms/Requirements:
Loan Amount : Minimum of P5.0 Million; Maximum of
P50.0 Million.

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Interest Rate : Prevailing bank lending rate available at
variable or fixed rate options.

Maturity / Repayment : Maximum of seven (7) years, payable
monthly or quarterly.

Security : Real Estate Mortgage (REM) or a
combination of REM/ Chattel Mortgage.

Program Title: SMALL BIZ LOAN

Program Objective: To provide multi-purpose credit facility for
immediate funding requirements of various business opportunities and
personal needs. Loan package may either be on a Revolving Credit
Line (RCL) or Term Loan (TL) facility.

Eligible Borrowers:
Individuals, Partnerships and Corporations;
Companies engaged in the business for at least three (3) years;
Companies operating profitably for the last three years;
Companies with gross monthly sales of at least P100,000.00
Self-employed individuals, entrepreneurs/businessmen and
professionals with minimum P100,000.00 monthly revenue.

Loan Purposes:
Working Capital/ Fixed Assets for Business.
House Renovation.
Personal Consumption.
Emergencies.

Terms/Requirements:
Loan Amount: Minimum of P500,000.00; Maximum of P5.0 Million.

Interest Rate:
Revolving Credit Line (RCL) prevailing bank lending rate,
reviewable monthly.
Term Loan (TL) fixed rate for the entire term of the loan.

RCL maximum of one year, subject to renewal.
TL maximum of five (5) years.

Mode of Payment:
RCL Interest payable monthly/quarterly, principal at maturity.
TL equal monthly amortization.

Security: Real Estate Mortgage on residential and commercial
properties with good marketability.

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Program Title: CONTRACT TO SELL (CTS) PURCHASE FACILITY

Program Objective: To enable the property developers of subdivision
or condominium projects to liquidate their installment receivables.

Eligible Borrowers:
Developers with proven track record and good reputation in the
real estate industry;
Land development must be 100% completed; and
Must have existing list of buyer receivables.

Loan Purposes:
For Working Capital.
For continuous development of housing projects.

Terms/Requirements:

Loan Amount : Minimum drawdown of P1.0 Million.

Interest Rate : Prevailing bank lending rate.

Maturity / Repayment : Maximum CTS term of 15 years with
monthly amortization.

Security : Assignment of CTS papers.

Planters Development Bank is an accredited participating financing
institution (PFI) of the following program agencies:

BANGKO SENTRAL NG PILIPINAS
BSP Electronic Rediscounting
(Production, Commercial, Developer)

LAND BANK OF THE PHILIPPINES Program Facilities:
Countryside Loan Fund (CLF) I
CLF II
CLF III
CLF-CREAM

SB CORPORATION Program Facilities:
Funding Access for Short Term Loans (FAST)
Financing Investment for Regional Market (FIRM)

SOCIAL SECURITY SYSTEM Program Facilities:
SSS Special Financing Program
SSS Financing Program for Educational Institutions
SSS Hospital Financing Program
SSS Industry Loan Program
SSS Tourism Program
SSS Sulong

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PNOC ENERGY DEVELOPMENT CORPORATION (PNOC-EDC)
Energy Research and Development Center, Commonwealth Avenue Diliman, Quezon City

Program Title: DECENTRALIZED ENERGY SYSTEMS (DES)
PROJECT END-USERS FINANCING PROGRAM

Program Objectives: To provide financial assistance to projects or
entities, which aims to use and/or utilize any decentralized energy
systems (DES) technology and system.

DES-supported technologies include the following:
Photovoltaics
Biogas Systems
Briquetted Solid Fuel
Biomass-Fired Dryers/Ovens
Wind Energy Conversion Systems
Solar Water Heaters
Micro/Mini Hydro, and
Energy Conservation Technologies.

Eligible Borrowers: A single proprietorship owned by a Filipino and
duly registered with the Department of Trade and Industry or a
partnership/corporation with major Filipino shareholdings and duly
registered with the Securities and Exchange Commission (SEC).

Loan Purpose:

Purchase of DES-supported technologies and systems

Terms/ Requirements:

Loan Amount: Minimum amount of P250,000 and shall not exceed
P5 million

Interest Rate: 6% per annum, fixed for the duration of the loan

Maturity / Repayment: Maximum of five years with an option to
avail of one year grace period on principal repayments. Repayments
are done on a quarterly basis over the loan period.

Security: Acceptable collaterals shall be limited to real estates
valued at 100% of their prevailing market price.

Contact Details:

The Department Manager
PNOC-EDC-ERDC, Commonwealth Avenue
Diliman, Quezon City
Phone: (632) 929.7611 to 19
Fax: (632) 920.6086
e-mail: dimaliwat.cs@energy.com.ph

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SMALL BUSINESS CORPORATION
(Small Business Guarantee and Finance Corporation)
17th & 18th Flrs, Antel Corporate Centre, 139 Valero Street
Salcedo Village, Makati City

DIRECT LENDING PROGRAMS

Program Title: PERMANENT WORKING CAPITAL LOANS
(Credit Line for Financing of Receivables and Inventory)

Program Objectives: A direct lending facility which aims to further
address the working capital needs of small and medium enterprises
(SMEs). This facility supports the enterprises gapping of receivables
and build-up of inventory.

Types of Facilities:
Demand Loan a credit line facility intended to better address
the working capital needs of SMEs that are pre-bankable in
terms of collateral and of credit track record with the banks, but
are mature in terms of a well-established accounting system and
have the capability to submit regular financial reports.
Transition Credit Line a variant of the Demand Loan Facility
intended for accounts receivables and/or inventory financing but
this time for SMEs who are not yet eligible under the Demand
Loan facility since they do not have a working accounting
system. This is a transition facility to develop borrowers to
eventually qualify under the Demand Loan Facility.

Minimum Borrower Qualifications:
Must be a Filipino-owned enterprise; in the case of corporation,
must be at least 60% Filipino-owned;
Must have an asset size of not less than P3 Million and not more
than P100 Million, excluding the value of land.
Business Track Record
Demand Loan must have at least three years positive business
track record.
Transition Credit Line must have at least two years positive
business track record.
The MSME industry involved should not be among the following
exclusionary list of SBGFC:
o Farm-level crop or livestock production (post-harvest
operations are qualified)
o Real estate development (SME contractors are qualified)
o Pure traders of imported goods
o Engaged in vice-generating operations

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Borrower Risk Rating (BRR)
Demand Loan BRR score of 4 or better per SBGFC
evaluation
Transaction Credit Line BRR score of 5 or better per SBGFC
evaluation
Accounting System
Demand Loan the borrower must have a working accounting
system acceptable to SBGFC.
Transaction Credit Line the borrower must be willing to set up a
working accounting system within the term of the credit line.

Loan Purpose:
Demand Loan receivables and/or inventory
Transition Credit Line receivables and/or inventory

Terms/Requirements:
Loan Amount:
Up to 70% of Computed Working Capital Requirement as
assessed by SBGFC
Up to P10 Million for enterprises with asset size of at least P15
Million per BIR-filed FS
Up to P5 Million for small enterprises
Up to P2 Million for new borrowers (may be higher in
meritorious cases)

Interest Rates:

Borrower Risk
Rating (BRR)
Fully
Secured
Partially
Secured
Clean
Loans
1 8.6% 8.7% 9.2%
2 8.7% 8.9% 9.7%
3 8.8% 9.1% 10.1%
4 8.9% 9.3% 10.6%
5 9.0% 9.5% 11.0%

For Credit Lines, a 1% Management Fee shall be added to the
interest rates.
Under the Demand Loan facility, a 1 percentage premium shall
be added to the applicable interest rate.

Interest Rate setting is based on 1) Borrower Risk Rating; 2)
collateral cover; and, 3) term of the loan.

Service Fees (to be deducted from proceeds of the loan; no front-
end fees):
Evaluation Fee of 1% of approved loan but not less than
P3,000

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Processing Fee of 1% of loan release
Out-of-town processing fee
o None for Metro Manila, Cebu and Davao
o P2,000 for the CALABAR and Region 3 provinces
o P4,000 or actual air fare for the rest of the country

Commitment Fee: Dated check amounting to P4,000

Repayment:
Demand Loan:
o One-Year Credit Line
o Up to 360 days per drawdown, but not to exceed the expiry
date of the credit line
o Payable upon demand by SBGFC
o Interest payable monthly or quarterly
Transition Credit Line:
o Six-month Temporary Credit Line
o Up to 180 days per drawdown, but not to exceed the 6-
month expiry date of the credit line.
o Interest payable monthly or quarterly

Security:
Demand Loan Assignment of receivables and/or inventory
Transition Credit Line must be at least 80% secured by Real
Estate Mortgage (REM) and/or Chattel Mortgage (CHM) on
motor vehicles or heavy-duty equipment.

Other Loan Terms:

Demand Loan:
As part of loan monitoring covenants, borrowers must submit its
latest quarter financial statements within one month after end of
each quarter for the duration of the credit line. Financial
statements must be supported by documents and/or schedules
of receivables and/or inventory for verification purposes.
Since financing is based on the levels of AR and of inventory,
SBGFC shall demand payment should there be a substantial
decrease in the borrowers working capital level.

Transition Credit Line:
Within the 6-month period after the granting of the loan, the
borrower must start setting up its accounting system
requirement. In case of non-compliance, an extension via
renewal of line for a maximum period of six months shall be
allowed in meritorious cases. For borrowers who already have
complied with the accounting system, they shall be reviewed for
the granting of a one-year credit line under the Demand Loan
facility.
Loan availments will be made against submission of POs,
receivables and/or inventory.

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Upon Loan Application:
Accomplished Business Loan Application Form with recent ID
picture
Notarized Client Information Sheet with fully accomplished
Statement of Assets and Liabilities (for each of the major
owners/officers)
Latest in-house financial statements (not more than one year old)
Latest ITR and BIR-filed financial statements
Business registration papers and business permit
Photocopy of sales documents to be financed
Location map of the project/business site
Proof of billing at residential and/or business address
List of suppliers, buyers and creditors with contact numbers

Before Project Visit:
For corporations, Board Resolution to borrow and on signatories
(and on mortgage, if applicable)
Certification on bank loans
Proof of ownership registration of the collateral properties
offered to secure the loan
Location map of real estate collateral properties.

During Project Visit:
Accomplished SBGFC signature card, as facilitated by its
Account Officer
Dated check of P4,000 to serve as commitment fee
Prior years in-house financial statements, if business is more
than one year old (prior two years FS for long existing
companies)
Breakdown of accounts receivables with aging schedule
Proof of historical sales transactions to serve as support to
sales validation
Business contracts, if any

Program Title: TRANSACTIONAL WORKING CAPITAL LOANS
(Financing of Receivables and Purchase Orders)

Program Objectives: A direct lending facility which aims to help bridge
the financing gap faced by micro, small and medium enterprises
(MSME) suppliers resulting from the receivables turn-around time.

Transactional Loan a credit line facility for MSME suppliers
where the subject of financing is the purchase order (POs)
and/or the receivable. Qualified buyers of the MSME supplier
include the following:

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o Foreign buyers
o Top 2000 domestic anchor firms
o Industry anchor firms
o Franchisor firms
o Government corporations/line agencies
Check Rediscounting Loan a variant of the Transactional Loan
Facility intended to assist MSME suppliers of domestic firms
which need not be among the top 2000, but who have issued
post-dated checks (PDCs) to cover the transaction.

Asset size
Transactional Loan must have an asset size of not less than
P500 Thousand and not more than P100 Million, excluding the
value of land.
Check Rediscounting Loan must have an asset size of not less
than P1 Million and not more than P100 Million, excluding the
value of land.
Business Track Record
Transactional Loan must have at least one year positive
business track record; may be less than one year if financing of
receivables; and at least two years if financing of purchase order
(PO).
Check Rediscounting Loan must have at least two years
positive business track record.
Must have a BRR score of 5 or better per SBGFC evaluation
Other criteria under Check Rediscounting Loan:
o The buyer/issuer of check must be a business entity without
negative track record; and,
o The borrower must have been a supplier of the issuer of
check for at least one year.

Loan Purpose/Subject of Financing:
Transactional Loan domestic and export receivables and/or
POs. SBGFC may finance a borrowers Purchase Order if:

Domestic PO:
o The borrower must have been a supplier of a Top 200
anchor firm for at least two years; or
o The borrower must have paid at least five transactions
under the receivables Financing facility of SBGFC.

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Export PO:
o The foreign buyer has a local buying agent/office; or
o The foreign buyer has a satisfactory payment track record
with existing SBGFC borrowers or those who had been
recently funded by SBGFC; or
o The borrower has at least one paid export transaction with
the foreign buyer; or
o If any one of the first three criteria is not met, SBGFC shall
finance LC-based export transactions only; a mere export
PO shall not qualify.

Check Rediscounting Loan domestic receivables and/or POs
(must be supported by a purchase order and/or sales invoice or
delivery receipt)

Terms/Requirements:
Loan Amount:
Transactional Loan:
o Minimum of P200 Thousand
o Up to 80% of receivables
o Up to 60% of POs, including export LCs
o Up to P8 Million for borrowers with SBGFC track record
o Up to P2 Million if new borrower (may be higher in
meritorious cases)
o Up to P1 Million if stand-by export credit line
Check Rediscounting Loan
o Up to 90% of face value of PDC, as long as interest due
can still be covered
o Up to P1 Million

Interest Rates:

Borrower Risk
Rating (BRR)
Fully
Secured
Partially
Secured
Clean
Loans
1 8.6% 8.7% 9.2%
2 8.7% 8.9% 9.7%
3 8.8% 9.1% 10.1%
4 8.9% 9.3% 10.6%
5 9.0% 9.5% 11.0%

interest rates.

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end fees):

P3,000


Repayment:
Transactional Loan:
o One-Year Credit Line or Case-to-Case
o Up to 180 days per drawdown in case of PO, but not to
exceed the actual payment date of buyer
o Up to 120 days per drawdown in case of receivables, but
not to exceed the actual payment date of buyer
Check Rediscounting Loan:
o One-Year Credit Line or Case-to-Case
o Up to the date of the assigned PDC which should not be
more than 120 days from date of financing by SBGFC; no
extension shall be allowed.

Security:
Transactional Loan - Assignment of receivables and/or PO
Check Rediscounting Loan - Assignment of PDCs (the
custodianship and depositing of the PDCs shall be under the
supervision of SBGFC)

Documentary Requirements

picture
owners/officers)
Latest in-house financial statements (not more than one year
old)
Photocopy of sales documents to be financed

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Account Officer
companies)
sales validation

Program Title: SMALL WORKING CAPITAL LOANS
(Amortized Term Loan for Various Working Capital
Requirements)

Program Objectives: A direct lending facility for micro, small and
medium enterprises who needed financing flexibility for their working
capital and soft or intangible investment requirements.

Micro Working Capital Loan a facility intended for accounts
and/or inventory financing for micro and small enterprises who
are not yet ready for a credit line transaction, who prefer to
amortize its working capital loan and most probably, do not have
a working accounting system.
Soft Investment Loan a facility intended to finance the soft or
intangible investment requirements of the enterprise such as
Research and Development (R & D), marketing including trade
fair participation, pre-operating expenses for an expansion
project, training, rental deposit, IT software packages, and
franchise development packages among others.

Should have an asset size of not less than P500 Thousand and
not more than P100 Million, excluding the value of land.

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Must have at least one year positive business track record

Loan Purpose:
Micro Working Capital Loan permanent working capital to
finance the receivables and/or inventory
Soft Investment Loan soft or intangible investments (i.e. R & D,
trade fair participation, pre-operating expenses for an expansion
project, training, rental deposit, IT software packages, and
franchise development packages among others). Under this
facility, the borrower shall be required to liquidate the loan
including the submission of proof of disbursement such as official
receipts, invoices and certifications among others.

Terms/Requirements:
Loan Amount:
Micro Working Capital Loan:
o Up to 70% of Computed Working Capital as assessed by
SBGFC
o Up to P500 Thousand for first time SBGFC borrowers
o Up to P1 Million for existing or old SBGFC borrowers

Soft Investment Loan
o Up to 90% of the total project cost
o Up to P500 Thousand

Interest Rates:

Borrower Risk
Rating (BRR)
Fully
Secured
Partially
Secured
1 9.8% 10.0%
2 10.1% 10.5%
3 10.4% 11.0%
4 10.7% 11.5%
5 11.0% 12.0%


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end fees):
P3,000


Repayment:
For Micro Working Capital and Soft Investment Loans:
o Up to 3 years amortized term loan
o Amortization is monthly or quarterly
o Grace period on principal may be given only if the
expansion project involves new product/service lines and/or
new markets.

Security: Must be at least 80% secured by Real Estate Mortgage
(REM) and/or Chattel Mortgage (CHM) on motor vehicles or heavy-
duty equipment.


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owners/officers)
old)

Proof of costing of assets subject of financing, if applicable

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Account Officer
companies)
sales validation

Program Title: FIXED ASSET FINANCING
(Amortized Term Loan for Asset Acquisition)

Program Objectives: A direct lending facility for domestic enterprises
to sustain, expand or improve their business operations. Expansion
projects may include fixed assets acquisition and construction or
renovation of the project site facility.

Must have at least one year positive business track record

Loan Purpose:
Fixed asset acquisition equipment or motor vehicle acquisition;
lot acquisition (limited to 25% of total loan)
Building construction/improvement
Refinancing of loans used for fixed asset acquisition (except for
loans from other government financial institutions)

Terms/Requirements:
Loan Amount:
Minimum loan amount of P200 Thousand

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Maximum Loan Amount
o Up to P10 Million for enterprises with asset size of at least
P15 Million per BIR-filed FS
o Up to P5 Million for small enterprises
o Up to P1.5 Million for micro enterprises
o Up to 90% of the total project cost

Interest Rates:

Amortized Loans up to 3 years

Borrower Risk
Rating (BRR)
Fully
Secured
Partially
Secured
1 9.8% 10.0%
2 10.1% 10.5%
3 10.4% 11.0%
4 10.7% 11.5%
5 11.0% 12.0%

Amortized Loans more than 3 years up to 5 years

Borrower Risk
Rating (BRR)
Fully
Secured
Partially
Secured
1 10.9% 11.6%
2 11.3% 12.2%
3 11.7% 12.8%
4 12.1% 13.4%
5 13.0% 14.0%

Fixed rate up to maturity of the loan
Interest rate for amortized term loans with repayment terms of
more than 5 years up to 7 years shall have a premium of 2
percentage points.

end fees):
P3,000


Repayment:
Up to 5 years may be up to 7 years for big projects (a proposed
project which is equal or higher than the borrowers asset is
considered as big)

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Repayment mode of monthly or quarterly
Grace period of up to 1 year on principal, but to be allowed only
if the expansion project involves new product/service lines
and/or new markets.

Security:
Fixed assets to be financed by the loan must form part of the
collateral.
In case assets to be financed cannot be collateralized as in the
case of leasehold improvements, there should be a substitute
collateral property, of which market value must cover at least
100% of the subject loan component.


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owners/officers)
old)

Proof of costing of assets subject of financing

Account Officer
companies)
sales validation

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Program Title: FINANCING FOR START-UP ENTERPRISES

Program Objective: A direct lending facility for start-up domestic
entrepreneurs whose product or service prototype has already been
produced and market-tested. This facility also caters to start-up
franchisees.

Eligible Borrowers:
Must be willing and able to finance at least 50% of the cost of the
start-up project;
o Engaged in vice-generating operations.
For non-franchisee,
o the product or service prototype must have been produced
and market-tested; and,
o must have a business plan, which the borrower should be
able to expound on and to defend.
For franchisee,
o the franchise concept may either be homegrown or
international; and,
o the franchisor firm must be a member in good standing of
either the Association of Filipino Franchisors, Inc. (AFFI) or
the Philippine Franchise Association (PFA).

Loan Purpose:
Fixed Asset Acquisition
o Equipment or motor vehicle acquisition
o Lot acquisition (limited to 25% of total loan)
Building construction/improvement
Working capital for initial inventory and/or other pre-operating
costs

Type of Loan: Amortized Term Loan

Terms/Requirements:

Loan Amount:
Maximum Loan Amount
o Up to 50% of total project cost
o Up to P3.0 Million for franchisees
o Up to P1.5 Million for non-franchisees

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Interest Rates:
Amortized loans up to 3 years
o Fully secured 13.0%
o Partially secured 15.0%
Amortized loans more than 3 years up to 5 years
o Fully secured 15.0%
o Partially secured 16.0%

Service Fees (to be deducted from loan proceeds; no front-end
fees):
P3,000
Out-of-town processing fees


Repayment: Maximum of 5 years, with up to six months grace
period on principal; monthly or quarterly amortization

Security:
For non-franchisees, must be fully secured by Real Estate
Mortgage and/or Chattel Mortgage on motor vehicle
Fixed assets to be financed by the loan shall form part of
collateral
In case of start-up franchisees, corporate guarantee of
franchisor may form part of collateral up to 50%.


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owners/officers)
Business Plan
In case of franchisee,
o Franchise Agreement or Certification of authority to
franchise
o Letter of Endorsement from franchisor
o Franchisors Certificate of Good Standing, as issued by
AFFI or PFA

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Proof of costing of assets subject of financing
Certification on bank loans, if applicable
Location map of real estate collateral properties

Account Officer
Business contracts, if applicable

Program Title: FINANCING FOR INFORMATION TECHNOLOGY
BUILD-UP (Credit Line for MSME IT-Capability)

Program Objective: A direct lending facility of Small Business
Corporation intended to help micro, small and medium enterprises
develop some degree of IT capability in terms of simple hardware
facilities, software solutions, website development, and training and
tutorial packages.

Loan Scheme: The loan shall be through a rediscounting scheme using
IT providers as the conduit and primary borrower. IT provider refers to
distributors of ready-made IT packages such as hardware and software.


IT Provider
Must be a local SME corporation
Must have an asset size not less than P500 Thousand and not
more than P100 Million (excluding the value of land)
Must have at least 2 years profitable track record in the industry

MSME Borrower
Must be a Filipino-owned enterprise
Must have an asset size of at least P200 Thousand
Must have a positive net income for the past immediate year

Type of Loan: One-Year Credit Line payable quarterly for not more
than 18 months, inclusive of 3 months grace period on principal

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Terms/Requirements:

Loan Amount:
Up to P10 Million for medium-sized IT providers (with asset size
of at least P15 Million based on ITR financials)
Up to P5.0 Million for small IT providers

Loan Availment:
The IT provider shall avail of drawdowns on the credit line.
Drawdowns shall have a sub-limit of P500 Thousand which
should be liquidated prior to the next availment.
The IT provider shall offer package offerings with not more than
5 options, as supported by postdated checks (PDCs) of the SME
buyer.
The SME buyer should be required to make a deposit of at least
20% on the cost of the IT package; financing not to exceed P200
Thousand per SME buyer.

Documentary Requirements for Liquidation:
Notarized promissory note and amortization schedule between
the IT provider and the SME buyer, and with assignment thereof
in favor of SB Corporation
Notarized deed of undertaking by the MSE buyer allowing the IT
provider to pull out IT package in case of default on payment
Photocopy of the SME buyers post-dated-checks (PDCs)
SME buyers information sheet/CI as gathered by the IT provider

Interest Rate:

Borrower Risk
Rating (BRR)
Fully
Secured
Partially
Secured
Clean
Loans
1 8.6% 8.7% 9.2%
2 8.7% 8.9% 9.7%
3 8.8% 9.1% 10.1%
4 8.9% 9.3% 10.6%
5 9.0% 9.5% 11.0%

interest rate. Interest Rate setting is based on 1) Borrower Risk
Rating; 2) collateral cover; and, 3) term of the loan.

Service Fees (to be deducted from loan proceeds; no front-end
fees):
P3,000
Out-of-town processing fees

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Commitment Fee: Dated check amounting P4,000.00

Security:
J oint and Several Signatures (J SS) of the owners
May be on a clean basis up to P1.0 Million, beyond which the
loan should be at least 50% secured by hard collateral.


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owners/officers)
old)

Board Resolution to borrow and on signatories (and on
mortgage, if applicable)

Account Officer
companies)
sales validation

Contact Details:

Ma. Luna C. David
Senior Vice President
Financing Delivery Sector
Phone: (632) 751.1888
Fax: (632) 813.5726 894.1677
e-mail: ldavid@sbgfc.org.ph

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CREDIT GUARANTEE PROGRAM

Program Objective: The SB Corporation offers a Credit Guarantee
Program which aims to help financial institutions consider the granting of
loans to micro, small and medium enterprises (MSMEs) thru credit
sharing, with SBC taking on the bigger bulk of the risk for a fee.

Facilities:

SME-GEAR or Guarantee for MSMEs without collateral a
guarantee facility for completely unsecured or clean loans.

SME-GROW or Guarantee for MSMEs with partial collateral a
guarantee facility for loans with insufficient collateral, where the
guarantee cover is limited to the unsecured portion only. SBC
shall not share on future collateral recoveries.

SME-GAIN or Guarantee for MSMEs with available collateral but
are faced with some credit risk concerns a guarantee facility
where the guarantee cover is on the entire loan inclusive of the
secured portion. SBC shall share on future collateral recoveries
on pari-passu basis.

Minimum Qualifications of the PFI:
Should be a financial institution which may include banks and
financing/leasing companies;
Latest CAMELS rating of at least 3, if applicable;
Positive net income for the past two yeas;
Past due rate of not more than 20%;
Capital adequacy ratio of at least 10%;
Operational MSME lending unit; and,
No negative credit record.

Minimum Qualifications of the MSME Borrower:
Borrower Risk Rating (BRR) score of 5 or better as scored by SBC;
At least 60% Filipino-owned enterprise duly registered with the
SEC and/or the DTI;
Asset size of not less than P500 Thousand and not more than
P100 Million exclusive of the value of the land where the project
is located;
Sound business track record of at least 3 years%;
At least one year business track record may be allowed provided
that the enterprise has a BRR of 4 or better;
Not belonging to the SBC exclusionary list of industries:
o Farm-level production involving agriculture, aquaculture,
and/or livestock (post-production activities are qualified);
o Real estate development (MSME contractors are qualified);
o Pure trading of imported commodities (unless value added
services are employed which impact positively on the
domestic market); and,
o Vice-generating activities.

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Positive net income for the immediate past year based on the
BIR-filed financial statements.

Types of Loan Eligible for Guarantee Cover:

Loan Package Period of Guarantee Cover

Fixed asset acquisition
(amortized term loan):
o Land purchase (only up to
25% of the loan), and/or
plant
construction/improvement
o Equipment
- brand new units

- second-
hand/reconditioned units

Up to seven years with up to
one year grace period on
principal

Up to five years with up to six
months grace period on
principal
Not more than 70% of the
remaining economic life or
three years whichever is
shorter with up to six months
grace period on principal
Working capital:
One Year Credit Line
o Transactional (up to 80%
of Purchase
Order/Accounts
Receivable/Inventory)
o Non-transactional (up to
80% of accounts
receivable and inventory
less accounts payable and
all existing working capital
loans)

Amortized Term Loan
o At least 3-year term
o Supported by cash flow
assessment

Up to one year upon approval
of the guarantee cover

Up to five years with up to six
months grace period on
principal

Loan refinancing/take-out (must
be in current status and not
restructured)

Depending on the loan
purpose

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Maximum Guarantee Cover:

SME-GEAR or Clean Loan Facility

Nature of PFI Credit Evaluation

Maximum Guarantee

With BRR System

70% of the entire loan but not to
exceed P6.0 Million

Without BRR System

70% of the entire loan but not to
exceed P2.0 Million

SME-GROW or Collateral-Short Facility

Nature of PFI Credit Evaluation

Maximum Guarantee

With BRR System

70% of the unsecured portion of the
loan but not to exceed P6.0 Million

Without BRR System

70% of the unsecured portion of the
loan but not to exceed P2.0 Million

SME-GAIN or Collateral-Sharing Facility

Nature of PFI Credit
Evaluation
Collateral
Cover
Maximum Guarantee

With BRR System

At least 25%

Less than 25%

80% of the entire loan, but
not to exceed P10.0 Million

70% of the entire loan, but
not to exceed P6.0 Million

Without BRR System
70% to 80% of the entire
loan, but not to exceed P3.0
Million

Guarantee Fee:

Borrowers Risk Rate
Fee per Annum
(up to the guaranteed portion only)
1 1.00%
2 1.25%
3 1.50%
4 2.00%
5 3.00%
In case of BRR deterioration after
guarantee approval (BRR 6 and up)
3.00%

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Manner of Application:
Credit Lines to be charged based on the full credit line amount
and on a full one-year term basis
Amortized Term Loans to be charged based on the outstanding
balance of the loan at the beginning of each amortization year.
The rate may be changed annually based on the accounts latest
BRR score.
Payment Option:
Credit Line
o Lump sum upon first drawdown; or
o Amortized with 25% payable on or before the first
drawdown; full amount not later than the end of the third
quarter of the life of the credit line
o In case of call, the guarantee fee balance for the year
should first be updated
Amortized Term Loan
o Lump sum at the beginning of each amortization year; or,
o Amortized quarterly in advance
o In case of call, the guarantee fee due for the year should
first be updated
General Procedures for Participation:
1. The financial institution (FI) applies for accreditation under the
credit guarantee program of SBC with its nearest office
together with the documentary basis for the FIs qualification
under the SBC program.
2. SBC assesses the accreditation application of the FI by
conducting standard checking.
3. Once approved for accreditation, a Master Guarantee
Agreement between SBC and the FI shall be executed, and the
latter shall be included in the list of SBCs Participating Financial
Institutions (PFI).
4. Upon acceptance by the PFI of an MSME loan application, it
shall determine whether an SBC guarantee cover is required.
5. The PFI shall inform SBC of its intent to apply for a guarantee
cover on the MSME loan, and may conduct a joint project
inspection and borrower interview with SBC to expedite the
guarantee approval.
6. The PFI approves the MSME borrowers loan application and
submits to SBC the documentary requirements.
7. SBC validates the minimum qualifications on the MSME
borrower, particularly the BRR score to determine the guarantee
approval, the monitoring covenants that the PFI should observe
and the applicable guarantee fee.
8. SBC issues to the PFI the terms of the guarantee approval.
9. The PFI implements/releases the loan within 90 days from date
of guarantee approval.
10. The PFI supervises the loan, inclusive of collection of the
guarantee fee in favor of SBC.

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11. The PFI submits to SBC the General and Per Loan Release
documentary requirements of SBC after implementation of the
guaranteed loan.
12. SBC issues a Certificate of Completeness of Documents in
favor of the PFI on a per PN basis, which is a basic requirement
in case of call on guarantee.
13. SBC issues a Revocation of Guarantee Cover in case of non-
submission by the PFI of the necessary guarantee
implementation documents.
14. The PFI and SBC conduct project inspections in compliance
with the monitoring covenants stipulated in the guarantee
approval which may be on annual or semi-annual basis. CI
update may be done as often as semi-annually.
15. In case of default by the MSME borrower, the PFI may
restructure the loan subject to approval by SBC; or may call on
the guarantee to institute payment by SBC on the defaulted
amount in favor of the PFI.
16. SBC validates the PFIs compliance to the guarantee monitoring
covenants to determine the final level of guarantee cover at the
time of call on guarantee.
17. Upon payment by SBC of the valid call on guarantee, claim on
the borrowers loan obligation is transferred to SBC up to the
extent of the guarantee cover. SBC shall co-supervise the loan
together with the PFI until full collection, foreclosure and/or legal
resolution.
18. MSME borrowers with negative credit track record are entered
into the financing systems credit bureau.


Upon Application for Guarantee Cover
Letter of request by PFI for SBC guarantee cover
Credit approval of PFI including details on nature and extent of
requested guarantee cover
Credit analysis of PFI on the borrower with summary of historical
financials and the BRR score
Credit investigation report of PFI on the borrower to cover creditors,
buyers and suppliers (not more than six months old)
Collateral appraisal report, if applicable (not more than one year old)
Other standard documents submitted by the borrower to the PFI

Upon Implementation of the Guaranteed Loan

General Loan Documents
Line/loan agreement or its equivalent
Notarized statement of assets and liabilities of the borrower (not
more than one year old)
Applicable continuing surety agreements
Applicable collateral instruments and attachments
Applicable life and non-life insurance papers

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Per Loan Release Documents (Per PN basis)
Promissory Note
Disclosure Statement
Proof of loan release
Payment/amortization schedule
Postdated checks of the borrower
In case of transactional credit line, if applicable:
o Deed of assignment of proceeds of receivables
o Proof of at least three export transactions with foreign buyer in
case of non-LC transactions
o Proof of liquidation of prior PN in case of inventory financing

Call on Guarantee (per PN basis)
Letter of call on the SBC guarantee
Loan ledger
Latest full BRR-review (not more than six months old from date of
call on guarantee)
Property search on the principal borrower and/or J SS parties (not
more than six months old from date of call on guarantee)
Original copy of deed of assignment by the PFI in favor of SBC on
the PFIs right on the loan up to the extent of guaranteed portion
Original copy of checks issued by the borrower including the
bounced checks
Latest demand letter or notice of dishonor sent to the issuer of the
bounced checks of the borrower (sent not later than 60 days after
default)
Latest demand letter sent to the borrower together with latest
statement of account (sent not later than 60 days after default)

Other Requirements:
Life insurance on the principal SME borrower who is 60 years old
and without clear succession up to the unsecured portion of the
loan
Non-life insurance on a case-to-case basis on vital business assets
whose loss will totally bring down the MSMEs operations

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WHOLESALE LENDING PROGRAM

Program Title: SME WHOLESALE LENDING PROGRAM

Program Objectives: The program aims to improve the ability of
financial institutions to lend to micro, small and medium enterprises
(MSME) thru funding access at terms that are properly matched with the
requirements of the sector.

Minimum Qualifications of the PFI:
Should be a financial institution which may include banks and
financing/leasing companies;
Latest CAMELS rating of at least 3, if applicable;
Positive net income for the past three yeas;
Past due rate of not more than 20%; or not more than 15% if
under fast-track accreditation
Capital adequacy ratio of at least 10% for banks; of at least 20%
for non-banks
Operational MSME lending unit; and,
No negative credit record.

Minimum Qualifications of the Sub-Borrower MSME:
At least 60% Filipino-owned enterprise, as registered with DTI or
SEC;
Asset size of not more than P100 Million, exclusive of value of
land where the project is located;
Positive income for the past one year based on BIR-filed
financial statements;
Debt-equity ratio of not more than 80:20;
Not belonging to the SBCs exclusionary list of industries:
o Farm-level production involving agriculture, aquaculture,
and/or livestock (post-production activities are qualified);
o Real estate development (MSME contractors are qualified);
o Pure trading of imported commodities (unless value added
services are employed which impact positively on the
domestic market); and,
o Vice-generating activities.

Terms/Requirements:

Funding:
In the form of a one-year omnibus credit line (OCL) available for
the PFIs short-term and medium-term MSME portfolio. The
OCL amount is based on SBCs assessment of the PFIs
absorptive capacity and risk rate.

An increase in the OCL amount may be requested during the life
of the loan facility.

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Funding may be up to 90% of the outstanding loan balance of
the MSME sub-loan, but not to exceed as follows:

PFI Category
Ceiling of SBC Funding per
MSME Sub-Borrower
Commercial Banks - P25.0 Million
Thrift Banks - P20.0 Million
Rural Banks - P15.0 Million

The SBC funding may be up to a maximum of five years. (The
MSME sub-loan may exceed five years.)

SBC offers the following funding options:
o Short-term portfolio rediscounting, where a batch of sub-
loans is funded based on the earliest maturing PN
o Individual rediscounting where there is matching of terms
o Medium term on-lending (for liquidation in 7 days)
o Case-to-case advance drawdown (for liquidation in 30
days)

Loan Term of MSME Sub-Borrower:
The PFI is given a free hand on how to package the loan in favor
of the MSME sub-borrower, except for the following limitations:
o The loan shall not be lower than P100 Thousand.
o The grace period of term loans may not exceed six months
for permanent working capital loans and not more than one
year for fixed asset loans; and it must be limited to the
principal portion.
o Any portion used for land acquisition shall be limited to 25%
of the loan.
o In case of term loans exceeding 365 days, there should be
a regular amortization of the loan on either monthly,
quarterly or semi-annual basis.

Miscellaneous Guidelines:
The sub-loan should be current and has had no experience of
restructuring within the PFI.
Dosri sub-loans are not qualified.
Sub-loans refinanced from another financial institution are
qualified.
Funding for the same sub-borrower may transpire for any
number of times within the life of the OCL.
Co-funding by another wholesale source is not allowed.
The sub-loan should have a remaining term of at least 70 days.
SBC shall process in batches of no less than P500 Thousand
worth of sub-loans.

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Required Collateral Cover on the Sub-Loan:
At least 50% REM and/or hold-out on deposit; may be based on
the outstanding balance of the loan in the case of amortized term
loans
At least 100% CHM and/or REM combination, if 50% REM/hold-out
on deposit cover cannot be complied with; may be based on the
outstanding balance of the loan in the case of amortized term loans
Tax declarations may be accepted for REM at a maximum loan
value of P500 Thousand
May be on clean basis if covered by a Tripartite Agreement
among the PFI, the sub-borrower and its anchor firm-buyer,
providing for a sound collection capture mechanism in favor of
the PFI. In lieu of hard collateral, there shall be an assignment of
the receivables.

Pass-on Rate:
360 days and below 6.3% p.a. if fully secured
6.5% p.a. if not fully secured
More than 360 days 7.0% p.a. if fully secured
7.2% p.a. if not fully secured
No processing fee shall be charged regardless of the term of the
loan.

General Procedures for Participation:
1. The financial institution (FI) applies for regular accreditation
under the SME wholesale lending program of SBC at its nearest
office together with the documentary basis for the FIs
qualification under the SBC program.
2. SBC assesses the accreditation application of the FI by
conducting standard checking which includes an interview of the
FIs management team; and approves the appropriate credit line
amount.
3. An OCL Agreement between SBC and the FI is then executed,
after which the FI is made part of SBCs list of Participating
Financial Institutions (PFI).
4. At its end, SBC may offer an FI a token OCL amount under the
agencys fast track accreditation mode. The FI accepts by
signing the OCL Agreement.
5. The PFI may request for a briefing of its MSME lending unit on
how to draw on the OCL. SBC can conduct it at the PFI site.
6. The PFI may start to draw on the OCL by submitting its MSME
sub-loans either on rediscounting or on-lending basis, together
with the short-listed documentary requirements. (If SBC has a
partner depository FI in the area, the PFI may opt to have its
original collateral documents forwarded there instead.)
7. SBC processes the PFIs loan drawdown request and grants the
funding within the agreed schedule.

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8. As soon as the PFI is able to draw on 30% of the OCL amount,
SBC conducts an audit at the PFI site on the remaining
standard documentary requirements that are no longer for
submission to SBC.
9. The PFI services its loan with SBC until full payment, either thru
post-dated checks or inter-branch deposit.
10. SBC releases the applicable collateral documents of the fully-
paid MSME sub-loan

Documentary/Procedural Requirements:

Regular Accreditation and Credit Line Approval
Corporate papers, as follows:
o Board Resolution to borrow from SBC and on authorized
signatories
o Articles of Incorporation and By-Laws

o Ownership and management profile, and corresponding
personal information sheets (as submitted to BSP if
applicable)
o Profile of MSME lending unit
o Briefer and/or annual report
Applicable financial reports, as submitted to BSP in the case of
banks, as follows:
o Camels rating
o Latest interim financial statements (not more than 3 months
old)
o Past 3 years financial statements
o Latest risk-based capital adequacy ratio
o Year-end report on specific and general loan-loss
provisioning
o Latest status report on the Dosri loans
o Profile of accreditation with other lending programs
Interview, ocular inspection, credit investigation and risk rating
by SBC

Fast Track Accreditation
On a case-to-case basis, SBC may grant a token OCL amount
of not more than P5 Million to PFIs without them having to
submit the standard documents. This is for as long as the PFI
is proven to qualify under SBCs minimum criteria for
accreditation.
Any OCL increase shall go through the standard evaluation
requirements.

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Implementation of Approved Credit Line
Signed Omnibus Credit Line Agreement
Certificate of good standing from BSP or any proof that the PFI
is active under BSPs funding program
Briefing by SBC for the PFIs implementing unit, if requested by
PFI

Availment on the Approved Credit Line
For submission to SBC prior to loan release by SBC:
o Updated financial statements of PFI (not more than 3
months old)
o Information sheet and collateral profile of the MSME sub-
borrower (SBC Forms) as prepared by the PFI
o PFI loan approval in favor of sub-borrower
o Sub-borrowers PN with consent to assignment, disclosure
statement and amortization schedule
o Applicable collateral documents, as follows:
- Mortgage contract between PFI and sub-borrower
- Proof of sub-borrowers ownership of collateral assets,
as annotated in favor of the PFI; or Certificate of
Custodianship for qualified PFIs.

Should be available at the PFI office for SBC post-release audit:
o Loan agreement between PFI and sub-borrower, if
applicable
o PFIs loan ledger on sub-borrower
o Sub-borrowers BIR-filed financial statements (not more
than 1 year old)
o Sub-borrowers business registration
o Sub-borrowers certification of environmental compliance
(SBC Form), if applicable
o Collateral appraisal of PFI and support documents on sub-
borrowers tax and insurance payments, if applicable

Contact Details:

Mr. Hector M. Olmedillo
Vice President
Phone: (632) 751.1888
Fax: (632) 813.5726
e-mail: holmedillo@sbgfc.org.ph

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SOCIAL SECURITY SYSTEM (SSS)
SSS Building, East Avenue, Diliman, Quezon City
Phone: (632) 920.6401 local 5115 and 5118


Program Objective: To provide SSS members, belonging to the small
and medium enterprises (SMEs) category, greater access to short and
long-term funds through SSS accredited conduit banks/ participating
financial institutions (PFIs) which will re-lend the fund to qualified SSS
member-borrowers.

Loan Purposes:
Short-Term Loan export packing credit, and temporary working
capital;
Long-Term Loan purchase of equipment, building or warehouse
construction, purchase of lot, purchase of inventories or as
permanent working capital

Eligible Borrowers:
Existing private enterprises in all industries except trading of
imported goods, liquor, cigarettes, and extractive industries like
mining or quarrying;
At least 60% Filipino owned;
Asset size of not more than P100.0 million excluding land;
Have positive income for the previous year (if previous years
income is negative, the average income of the past two or three
years should be positive);
Have debt-to-equity ratio of not more than 80:20 after financing,
or 70:30 if borrower is a franchisee; and
SSS member-employers of good standing.

Terms/Requirements:
Loan Amount:
Short-Term Loans Up to 70% of the value of the Letter of
Credit (LC) or Purchase Order (PO) for export packing, or 70% of
the working capital requirement, or maximum of P5.0 Million.
Long-Term Loans Up to 80% of the incremental project cost, or
maximum of P5.0 Million.

Interest Rates:
Short-Term Loans
o To PFI Fixed rate based on prevailing 364-day T-bill Rate.
o To End-user/ Borrower PFIs option
Long-Term Loans
o To PFI Over 1-5 years term loan based on the prevailing
rate of similar tenor but not to exceed 10% p.a.
o To End-user/ Borrower PFIs option

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Short-Term Loans Maximum of one (1) year.
Long-Term Loans Maximum of five (5) years with one (1) year
grace period on principal payment.

Security:
Short-Term Loans
o Postdated Check
o Registered/Unregistered Real Estate Mortgage (REM) or
Chattel Mortgage (CM)
o Assignment of Letter of Credit (LC) or Purchase Order (PO)
(for export packing credit only)
o Assignment of Life Insurance
o Guarantee Cover
o Corporate Guarantee (if franchisee; for credit line-temporary
working capital only)
o Assignment of Lease Rights (if franchisee; for credit line-
temporary working capital only)
Long-Term Loans
o Postdated check
o Registered/Unregistered REM/CM
o Assignment of Life Insurance
o Corporate Guarantee (if franchisee)
o Assignment of Lease Rights (if franchisee)

Contact Details:

Institutional Loans Department (ILD)
Phone: (632) 927.8249
(632) 920.6401 locals 5115 or 5118
e-mail: marquezls@sss.gov.ph

Program Title: THE SSS SPECIAL FINANCING PROGRAM

Program Objectives:
To address the unavailability of credit facility to the business
sector by making funds available through the SSS accredited
conduit banks / participating financial institutions (PFIs) which will
on-lend the fund to eligible borrowers;
To encourage the formation and growth of barangay micro
business enterprises; and
To generate employment.

Eligible Borrowers:
New or existing micro, cottage, small and medium enterprises
including registered Barangay Micro Business Enterprises
(BMBEs) as well as entities with asset size of not more than
P200.0 Million;

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Enterprises engaged in agribusiness, manufacturing, utilities,
transportation and communications, commercial production,
particularly of food and basic consumer items, and products for
export, trading, and service-oriented enterprises; and
SSS member-employer of good standing.

Loan Purposes:
Construction or renovation or expansion of building;
Acquisition or upgrading of machinery and equipment;
Acquisition of land; and
Working Capital.

Terms/Requirements:

Loan Amount: Maximum loan of P50.0 Million.
For land acquisition, the loanable amount is up to 40% of its cost but
not to exceed 40% of SSS loan.

Interest Rate (subject to review every five years):
To PFI:
o 1 year - 7%
o over 1-3 years - 9%
o over 5 years - 11%

To End-user/ Borrower: PFIs option.

Maturity / Repayment: Maximum of ten (10) years, in equal
monthly, quarterly or semi-annual payments, which may include a
two (2) year grace period on principal payment, if warranted. Loan
to BMBEs may be amortized monthly or quarterly depending on the
cash flow projections of the borrower.

Security: Any collateral acceptable to the PFIs. However, loan to
BMBEs, if not secured by hard collateral, may also be secured by the
Small Business Corporation (SB Corporation) Guaranty.

Contact Details:

Phone: (632) 927.8249
(632) 920.6401 locals 5115 or 5118

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Program Title: INDUSTRY LOAN PROGRAM
(Under the PFIs Omnibus Credit Line)

Program Objectives:
To contribute to the national recovery effort by providing financial
assistance to selected companies through the SSS accredited
conduit banks / participating financial institutions (PFIs);
To create employment opportunities by increasing the capacity
utilization or modernization of plant and equipment of selected
companies; and
To further diversify SSS investments and to efficiently use its
resources consistent with its earnings, liquidity and risk targets.

Eligible Borrowers: Existing and Start-up enterprises with the following
qualifications:
Engaged in Agribusiness (contract growing, aquaculture), Food
Processing (rice, oil, feedmill, meat processing), Manufacturing
(garments, ceramics, textile, furniture, construction materials,
etc.), Service Oriented Enterprises (transportation, warehousing,
utilities, etc.), Tourism Related Projects (hotels, resorts, theme
parks, etc.), and Real Estate Development Projects (industrial
estate development, commercial);
Have an asset size of at least P60.0 million;
Have a debt-equity ratio not exceeding 75/25 after financing;
Have proven track record of profitability;
Be at least 70% Filipino-owned, for corporation;
Not have defaulted in the payment of interest on any of its debts,
securities or loans; and
SSS member-employer of good standing

Loan Purposes:
Modernization of plant and equipment resulting to an increase in
production capacity;
Civil works and construction of building.
Increasing capacity utilization of existing firms;
Additional / new capacity; and
Acquisition of land.

Terms/Requirements:

Loan Amount: Minimum of P51.0 Million; Maximum of P500.0
Million (75% of the requirement of the project but not to exceed
P500.0 Million or loan value of collateral whichever is lower).


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Interest Rate: subject to review every five (5) years
To PFI:
o over 5 years - 12%
To End-user: PFIs option.

Maturity / Repayment: Maximum of ten (10) years, in equal
monthly, quarterly or semi-annual payments depending on the cash
flow requirements of the project. Grace period for amortization of the
principal may be given on a case-to-case basis, but not to exceed
three (3) years.

Security: Real Estate/Chattel Mortgage and other collaterals
acceptable to the PFIs.

Contact Details:

Phone: (632) 927.8249
(632) 920.6401 locals 5115 or 5118

Program Title: FINANCING PROGRAM FOR TOURISM PROJECTS

Program Objectives:
To provide long-term financing to SSS members engaged in
tourism projects through the SSS accredited conduit banks /
participating financial institutions (PFIs) as a means of spurring
economic growth and regional development;
To contribute to the governments program of generating more
employment opportunities especially in the countryside; and
To contribute to the countrys foreign exchange earnings.

Eligible Borrowers:
New or Existing enterprises engaged in tourism business;
At least 60% Filipino-owned;
Must have a track record, experience and training on the project
being proposed;
Must have debt-to-equity ratio of not more than 75:25 before and
after financing; and
Must be an SSS member of good standing

Loan Purposes:
Site development;
Enhancement of existing facilities;
Construction of building e.g. resort cottages;

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Acquisition of machinery and equipment, furniture, furnishings
and fixtures; and

Terms/Requirements:

Loan Amount: Depends on the requirements of the project/business
but not to exceed P150.0 million.


Interest Rates : Subject to review every five years

To PFI To End-user/ Borrower
(Maximum of)
1-3 years - 9% 13%
over 3-5 years - 10% 14%
over 5-10 years - 11% 15%

Maturity / Repayment: Maximum of ten (10) years, in equal monthly,
quarterly or semi-annual payments, including a grace period on the
repayment of principal of not more than three (3) years.

Security: Real Estate/Chattel Mortgage and other collaterals
acceptable to the PFIs.

Contact Details:

Phone: (632) 927.8249
(632) 920.6401 locals 5115 or 5118

Program Title: SPECIAL FINANCING PROGRAM FOR
VOCATIONAL AND TECHNICAL SCHOOLS

Program Objectives:
To contribute to the development of vocational and technical
skills necessary to increase the overall productivity in the
economy, thus help in accelerating the economic and social
development of the country;
To improve access of the general population and in particular,
SSS members and their dependents, to better educational
facilities by providing long-term financial assistance to private
vocational and technical schools through the SSS accredited
conduit banks / participating financial institutions (PFIs); and
To create awareness and appreciation of the demand and
potential earning capabilities of vocational and technical skills.

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Eligible Borrowers:
New or existing private vocational and technical schools duly
licensed by an authorized agency such as the Department of
Education (DepEd), Technical Education and Skills Development
Authority (TESDA), and Commission on Higher Education (CHED);
At least 60% Filipino-owned;
Have a proven track record of profitability;
Have a debt-to-equity ratio of not more than 75:25 after
financing;
An SSS member-employer of good standing; and,
Not have defaulted in the payment of any loan obligations or
securities.

Loan Purposes:
Construction of new school buildings;
Completion or improvement of existing school buildings;
Acquisition or repair/upgrading of school equipment and facilities;
Repair and reconstruction of school buildings damaged by recent
calamities; and

Terms/Requirements:

Loan Amount:
Maximum of 80% of the total project cost, but not to exceed
P75.0 Million;
For repair and reconstruction projects in declared calamity areas,
100% of the project cost, but not to exceed P75.0 Million.
For land acquisition, the loanable amount is up to 40% of its cost
but not to exceed 40% of SSS loan.

Interest Rates: subject to review every five (5) years

To PFI To End-user/Borrower

1-3 years - 9% 13%
over 3-5 years - 10% 14%
over 5-10 years - 11% 15%

Maturity / Repayment: Ten (10) years, in equal monthly, quarterly or
semi-annual payments, including a grace period of three (3) years on
principal payment.

Security: Preferably by a Real Estate Mortgage on the borrowers
property or any collateral acceptable to the PFIs.

Contact Details:

Phone: (632) 927.8249
(632) 920.6401 locals 5115 or 5118

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Program Title: HOSPITAL FINANCING PROGRAM

Program Objectives:
To facilitate the establishment of and to help maintain hospitals
and related institutions for the sick, aged and infirm members
and their families by making funds available through the SSS
accredited conduit banks / participating financial institutions
(PFIs);
To improve hospital care delivery to the general population and
to SSS members and their dependents by making adequate
hospital care accessible and affordable to low-income
employees; and,
To support the national governments program of attaining a
much better distribution of hospital facilities throughout the
country that will be more responsive to the needs of particular
localities and their inhabitants.

Eligible Borrowers: All categories of hospitals licensed by the
Department of Health (DOH), either primary, secondary, or tertiary may
borrow under the loan program and must:

Be at least 60% Filipino-owned;
Maintain a debt-to-equity ratio of 75:25 after financing;
Be an SSS member-employer of good standing; and,
securities.

Loan Purposes:
Construction of new hospital buildings and institutions for the
sick, aged, and infirm individuals;
Completion or improvement of existing hospital buildings;
Acquisition or repair/upgrading of hospital equipment and
machinery;
Repair and reconstruction of hospital buildings damaged by
recent calamities;
Construction, expansion and improvement of doctors clinics as
part of the hospital building complex; and

Terms/Requirements:

Loan Amount:
Maximum amount shall be 75% of the project cost but not to
exceed P150.0 Million for primary and secondary hospitals and
P350.0 Million for tertiary hospitals.
For repair and construction projects in declared calamity areas,
the maximum amount shall be 100% of the project cost but not to
exceed P150.0 Million for primary and secondary hospitals and
P350.0 Million for tertiary hospitals.

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For doctors clinics, the loanable amount is equivalent to 50% of
the project cost, but not to exceed P150.0 Million.
For land acquisition, the loanable amount is up to 40% of its cost
but not to exceed 40% of SSS loan.

Interest Rate : subject to review every five (5) years

1-3 years - 9% 13%
over 3-5 years: - 10% 14%
over 5-10 years - 11% 15%

Maturity / Repayment: Payable within ten (10) years, including a
grace period of three (3) years on the principal. Principal balance will
be amortized monthly, quarterly, and semi-annually together with the
interest based on the cash flow projections.


Contact Details:

Phone: (632) 927.8249
(632) 920.6401 locals 5115 or 5118

Program Title: SSS FINANCING PROGRAM FOR EDUCATIONAL
INSTITUTIONS

Program Objectives:
To improve access to better educational facilities by providing
long-term financial assistance to private educational institutions
through the SSS accredited conduit banks / participating financial
institutions (PFIs);
To enhance the countrys economic productivity thru the
development of a larger pool of professionals and skilled workers
to support the countrys industrial and agricultural expansion; and
To complement the governments aim to achieve a better
distribution of educational institutions nationwide.

Eligible Borrowers: New or existing private educational institutions in
the elementary, secondary, or collegiate/university level which are duly
licensed by the Department of Education (DepEd) or the Commission on
Higher Education (CHED), may borrow under the program and the
borrowing institution must:
Be at least 60% Filipino-owned;

-179-
Maintain a debt-to-equity ratio of 75:25 after financing;
Be an SSS member-employer of good standing; and,
securities.

Loan Purposes:
Construction of new school buildings including gymnasium,
library and other facilities related to schools operations (sports
complex, multi-purpose hall, covered court, track and field, etc.);
Completion or improvement of existing school buildings;
Acquisition or repair/upgrading of school equipment and
machinery;
Repair and reconstruction of school buildings damaged by recent
calamities; and

Terms/Requirements:

Loan Amount: The maximum loanable amount shall be 75% of the
total project cost but not to exceed P150.0 Million for primary and
secondary schools, P250.0 Million for colleges, and P350.0 Million for
universities.


Interest Rates: subject to review every five (5) years

1-3 years - 9% 13%
over 3-5 years: - 10% 14%
over 5-10 years - 11% 15%

Maturity / Repayment: The loan is payable within ten (10) years
including a grace period of three (3) years on the principal. The
principal balance will be amortized monthly, quarterly or semi-
annually together with the interest based on the cash flow
projections.


Contact Details:

Phone: (632) 927.8249
(632) 920.6401 locals 5115 or 5118

-180-
INDEX

Microfinancing beneficiary / project focus
General 3-4, 11-15, 19-23, 28-30, 38-39, 42-48
Farmers/Fisherfolk 5-6, 24-25
Overseas workers 26-27
Below poverty threshold 7-10, 16-18, 24-25, 32-33
Women 16-18, 40-41
Health services/Housing/Energy 31, 34-37

SME Financing beneficiary / project focus
General 52-55, 58-65, 88-90, 93-99, 101-103, 107-138
141-156, 159-174
Technology improvement 56-57, 156-158
Trading/services 74-76, 101-103, 107-109, 171-174
Environment/Infrastructure/Maritime/Shipping/Energy 72-74,
76-87, 92, 101-112, 140
Education/Health/Real Estate/Tourism 101-103, 107-109, 139
174-179
Agri-fishery business 65-72, 91, 99-103, 107-112
OFWs 59-63

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Financing Programs

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FINANCING PROGRAMS

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