Professional Documents
Culture Documents
Social Enterprise
Investment Fund
The Foundation for a Sustainable
Society (FSSI) is committed to provide
social investments as a contribution
to sustaining local economies and
eco-systems. We aim to facilitate social
investments that lead to triple bottom lines in
terms of economic viability, ecological soundness
and social equity. We nurture partnerships that help empower
the poor to become productive members of society and as
stewards of our natural resources.
We support social enterprises that undertake development,
production, processing and marketing of commodities by
the marginalized social sectors. We believe that growing
social enterprises requires the support of both state and
non-state stakeholders. It also entails capacity building
through awareness building and education. And so we support
alliances among social enterprises and civil society, as well
as with national and local government agencies, and the rest
of the business sector that are inclined to working with social
enterprises.
The Social Enterprise Investment Fund (SEIF) is aimed at
primary cooperatives, cooperative federations, communitybased organizations, alliances/network of civil society
organizations, private enterprises, and community financial
institutions.
We also support initiatives that are part of local convergences
on the following:
Local Economy Development (LED) partnership;
Cluster of municipalities sharing an ecosystem;
Integrated Area Development (IAD) cluster;
Sector- or industry-based formations;
Marginalized community, such as a community of
Indigenous people or upland dwellers.
Our Social Enterprise Investment Fund consists of project
loans, asset management products, equity contribution and
grants.
Project Criteria
Eligibilities
Application
Appraisal
Approval
Loans
FSSI believes in providing opportunities to communities to
improve peoples means of living in a sustainable manner by
scaling-up social enterprises.
FSSI extends project loans to enhance capacity of social
enterprises to meet their increasing demand for financial
investment that is necessary to help ensure growth and
sustainability.
Our Social Enterprise Investment Fund provides Loans to the
following organizations:
a. Cooperatives;
b. Cooperative federations;
c. Small and Medium enterprises (SMEs) registered either
as stock corporation, partnership or single proprietorship;
d. Community Financial Institutions that include cooperatives, cooperative federations, cooperative banks, nongovernment organizations (NGOs), and rural banks that are
providing financial services in marginalized communities;
e. Non-government Organizations(NGOs); and,
f. Peoples Organizations.
Project loans are provided for a specific business proposal or
business activity. The general terms are classified as either
term loan or credit line.
Term loan a type of loan released in lump sum or in
tranches and payable in fixed number of equal instalments
on principal plus interest.
Credit line a type of loan wherein a
borrower can draw from a maximum amount
of credit at any time during the validity period. The amount of credit drawn is payable
in fixed number of instalment(s).
Loan interest rate varies based on type of loan
and is generally set lower than most commercial
rates.
Loan Packages
Enterprise Loan - is for the acquisition of additional
capital assets and for increasing working capital of an
enterprise engaged in commodity production, processing
and marketing. Loan amount is up to Php 20M. Maturity
is one year to five years.
Start-up Enterprise Loan is intended to support upscaling of a newly established enterprise that promises
to contribute to improving participation of a target social
sector in a local value chain. Loan amount is from
Php 500,000.00 to Php3M. Loan maturity is
up to five years.
Bridge Financing - is a shortterm loan for emergency financing
requirement of micro and small
enterprises. Loan amount is up to
Php 500,000.00 and maturity per
drawdown is up to one year.
Business Development
Services (BDS) Loan
is a soft loan that is extended to help
finance other enterprise investments
such as research and development,
patenting, market development, organizational
development, skills and competency enhancement.
Community Financial Institutions (CFI) Commodity
Production Loan is a loan extended to CFIs for the
purpose of extending loans to individual borrowers
engaged in production, processing and trading of
agricultural and fishery products. Maximum loan amount
is Php 30M. Maturity is one to three years.
Community Financial Institution (CFI)
Microfinance Loan is a loan extended to a CFI
to help expand outreach of its microfinance service
especially to the marginalized sector that have less
access to financial services. Maximum loan amount is
Php 30M. Maturity is from one year to three years.
Equity
FSSI may contribute equity in an enterprise representing
common or preferred shares. Equity investment may be
considered a form of leverage intervention to support a
particular project that may have a strategic role and contribution in promoting social enterprises in a given sector
or geographical area.
Fund Syndication
Fund syndication is a pooling of funds by a group of
donors or investors who work together to help fund a
project or a business venture. FSSI participation in fund
syndication may be in the form of grant, equity, guarantee
or loan, or a combination of these financing services.
Grants
Grant assistance is provided to
Civil Society Organizations (CSOs)
and CSO-based social enterprises
that are involved in initiatives towards poverty reduction,
promotion of social justice and improvement in economic
welfare of the poor and marginalized sectors.
The facility has three windows, namely, start-up enterprise
grant, capacity building, and advocacy grant.
Advocacy Grant
Advocacy Grant is intended to support advocacy projects
working on the following themes:
- Social entrepreneurship
- Climate change adaptation and mitigation
- Sustainable production
- Alternative/renewable energy
- Value chain development in specific
industry or sector
- Gender mainstreaming in enterprise and
value chain
- Patronage of products and services of
social enterprises