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Advisory 2
Briefer on Government Loan Assistance and Financing Options for
Microfinance Institutions (MFIs)
27 April 2020
Table of Contents
Introduction 3
Rehabilitation Support to Cushion Unfavorably Affected Enterprises by COVID-19 (I-Rescue) Lending
Program of the Land Bank of the Philippines 4
Rehabilitation Credit Programs for Cooperatives and Microfinance Institutions 4
Rehabilitation through Loan Restructuring 7
Rehabilitation Support Program on Severe Events (RESPONSE) of the Development Bank of the
Philippines 8
The Expanded Survival and Recovery Assistance (SURE Aid) Program of the Agricultural Credit
Policy Council (ACPC) 12
Production Loan Easy Access (PLEA) Program of the Agricultural Credit Policy Council 14
Agrarian Production Credit Program (ACPC) of the Agricultural Credit Policy Council 16
Pondo sa Pagbabago at Pag-asenso (P3) of Small Business Corporation 18
2
Introduction
Restart Micro Enterprises (RestartME) compiled a list of government loan assistance and financing
options for microfinance institutions (MFIs). This is different from the first advisory which focused on
individual assistance.
This advisory briefer discusses 7 of these programs and outlines the following requirements for each:
1. Eligible projects and borrowers (which projects and borrowers does the fund support)
2. Pre-qualification criteria (what are the pre-conditions for eligible individuals and groups)
3. Credit facility (what type of loan does this program provide)
4. Loanable amount and tenor (how much can institutions borrow and until when can it be paid)
5. Interest rates and pass on rates (how much of the loan outstanding should be added to the
total amount to be paid, how much is passed through to investors after management fees and
guarantee fees have been paid to securitize an institution)
6. Mode of payment (which of the existing payment methods is preferred by the program)
7. Penalty (how much will the implementer charge in case the borrower fails to meet deadlines)
8. Collaterals (what property or condition will be used in exchange of higher loan limit and lower
interest rates, what will banks and government agencies use to minimize risk on their part)
9. Documentary requirements (what documents need to be submitted or processed before and
after the loan is released and disbursed)
10. Contact details (who can the institution reach out to for more information on the program)’
It is important to note that most loan products, especially bank loans, can be renegotiated. RestartME
recommends that microfinance institutions discuss arrangements with the different program
implementers to create or customize a product that best caters to their purposes.
RestartME further recommends that this briefer be used by MFIs as a working summary of how they
can engage government loan assistance in financing and refinancing their organizations.
Thank you.
Hya Bendaña, Ken Abante, Aika Robredo, Rapa Lopa
3
Rehabilitation Support to Cushion Unfavorably Affected Enterprises by COVID-19
(I-Rescue) Lending Program of the Land Bank of the Philippines
1
A. Rehabilitation Credit Programs for Cooperatives and Microfinance Institutions
Eligible Project
or Loan
Purpose
Wholesale Lending Livelihood Financing – to augment credit fund for
on-lending to Small Farmer and Fishers (SFFs) or Micro, Small, and
Medium Enterprises
Credit Facility
Term Loan
Loanable
Amount
Wholesale Lending Livelihood Financing
●Working Capital – based on the borrower’s funding requirements
on its on-lending to its sub-borrowers’ working capital
requirements
The cooperative or MFI shall submit a masterlist of its newly approved
sub-loans for its sub-borrowers affected by disaster which Landbank shall
fund as working capital of the cooperative or MFI.
The maximum amount of loan shall be up to 85% of the cooperative or
MFI’s newly approved sub-loans to disaster-affected sub-borrowers.
Loan Tenor
Up to a maximum of 5 years
Interest Rate
5% per annum (p.a.) fixed for 3 years and subject to annual repricing
thereafter based on 1-year BVAL reference rate plus a spread based on
credit rating. However, the interest rate shall not be lower than 5% p.a.
Pass-on Rate
●For SFFs – maximum of 12% p.a. inclusive of other charges
●For non-SFFs but for agricultural purposes – maximum of 12% p.a.
●For non-agricultural purposes – 15% p.a.
Penalty
●For cooperatives – 3% p.a. with 180 calendar days grace period
●For MFIs – 24% p.a. with 60 calendar days grace period
1 "i-rescue lending program - Land Bank of the Philippines." www.landbank.com/i-rescue-lending-program. Accessed 26 Apr. 2020.
4
Mode of
Payment
●Principal – payable upon maturity of Promissory Notes (PNs) per
batch
●Interest – payable monthly, quarterly, semi-annually in arrears or
lump sum upon maturity of the PNs
In the case of varied maturities of sub-PNs
●The due the borrower’s PN shall be the earliest due date of the
sub-PNs per batch regardless of the project type; or
●Upon maturity of the borrower’s PN, payable monthly, quarterly,
semi-annually or lump sum depending on cash flow
Payment shall be made through debit from existing deposit account with
Landbank, over-the-counter, issuance of PDCs and / or other e-Banking
Channels
Other fees
and charges
●Standard fees and charges shall apply
●Application, CI/BI, commitment and pre-termination fees shall be
waived
Collateral
Any or combination of the following:
If sub-PNs are already available at the time of loan release
●Assignment of Notes Receivables / Sub-borrower’s PNs with at
least 100% cover, plus underlying collateral, if any
●Assignment of Proceeds of guarantee claims from the Philippine
Guarantee Corporation, Credit Surety Fund and insurance claims,
from the Philippine Crop Insurance Corporation (PCIP), if any
If sub-PNs are not yet available at the time of loan release:
●Post-Dated Checks (PDCs) to cover principal and interest
amortizations for each PN
Other Terms
Standard Risk Asset Acceptance Criteria shall apply except for Debt to
Equity Ratio which shall be at 90:10 and that computation of net Past Due
Rate shall be based on financial statements (F/S) before occurrence of
calamity
5
Documentary
Requirements
A. Pre-loan Release Requirements
1. Letter-request to avail from the Term Loan from co-ops or MFIs
signed by authorized signatories, indicating among others the
following:
●Amount of loan to be availed
●Number of prospective sub-borrowers
●Name of commodity / projects to be financed (Note: This is
for the purpose of determining more or less the term of loan to
be given to co-ops or MFIs)
2. Masterlist of the sub-borrowers or sub-PNs to be assigned, if
available
3. PDCs, if the Masterlist of Sub-Borrowers is not yet available
4. The co-op or MFI shall maintain custody of all sub-borrower’s PN
including underlying collateral. The co-op / MFI shall submit a
notarized undertaking to keep custody of the sub-borrower’s PN
and its underlying collaterals provided in favor of Landbank and
that the same are open for inspection and audit of Landbank
representative, anytime at the Bank’s discretion
B. Post-loan Release Requirements
1. The co-op or MFI shall submit a Schedule of Loans Disbursed
under the I-RESCUE Lending Program not later than 60 calendar
days after the loan has been released
2. The co-op or MFI shall return to Landbank the amount
undisbursed including the interest incurred computed up to the
date of return or payment not later than 91st calendar day from
date of loan release, if any
3. No subsequent releases shall be made until the co-op or the MFI
has submitted the complete schedule of loan receivables and has
returned to Landbank the undisbursed amount including the
interest incurred
4. Validation of sub-PNs shall be covered by the provisions of the CPI
2016-007 (Revised Guidelines on Post Validation, Verification and
Applicable Sanctions Relative to Credit Facilities secured by Deed
of Assignment of PNs), as may be amended.
Contact Details
For additional information, go to the nearest Landbank Branch or contact
the Programs Management Department of their main office at (+632)
8405-7198.
6
B. Rehabilitation through Loan Restructuring
2
Loan Purpose
Restructuring of existing loan account via additional loan, extended
repayment period, or other means (or combination of means) to enable
existing borrowers to rehabilitate or restore operational cash flow
Loan Tenor
Up to a maximum of 10 years with up to 3 years grace period on principal
and 1-year grace period on interest depending on cash flow
Note: The deferred interest shall be non-interest bearing and shall be amortized
equally either monthly or quarterly within 3 years inclusive of 1-year grace period
Interest Rate
5% p.a. fixed for 3 years and subject to annual repricing thereafter based on
1 year BVAL reference rate plus a spread based on credit rating, however, the
interest rate shall not be lower than 5% p.a.
Mode of
Payment
Monthly, quarterly, semi-annually depending on cash flow
Penalty
Waived
Contact
Details
For additional information, go to the nearest Landbank Branch or contact
the Programs Management Department of their main office at (+632)
8405-7198.
2"i-rescue lending program - Land Bank of the Philippines." https://www.landbank.com/i-rescue-lending-program. Accessed 28 Apr.
2020.
7
Rehabilitation Support Program on Severe Events (RESPONSE) of the Development
Bank of the Philippines
3
Eligible
Borrowers
Public and / or private institutions located or operating in areas declared in
a state of calamity by competent authority
Eligible
Projects
Projects located in areas affected by calamities and / or force majeure
events as determined by the appropriate authorities, such as the President
of the Philippines, NDRRMC, or concerned LGUs
Qualification
Criteria
1. Declaration of state of calamity or existence of a calamity of an area
2. Lending Center or Department Head certification that the project was
adversely affected by calamity or event arising from the occurrence of such
calamity
For new borrowers, additional requirements include:
●At least 1 year in operation prior to the calamity
●No adverse findings from banks and major suppliers
Loan Amount
Based on project requirement and is subject to validation
Equity
Requirement
For Bank Fund – minimum of 5%. May be dispensed depending on the case
For ODA Funds – shall follow the equity requirement of the funder
Interest rate
For Bank Funds
●For non-LGUs – prevailing market rate plus a spread of 1% fixed for
5 years
●For LGUs – cost of fund applicable spread based on the LGU income
classification
For ODA Fund
●For Non-LGUs – cost of fund plus 1% spread
●For LGUs – cost of fund plus applicable spread based on the LGU
income classification
3"DBP Rehabilitation Support Program on Severe Events ...." https://www.dbp.ph/developmental-banking/social-services-
community-development/dbp-rehabilitation-support-program-on-severe-events/. Accessed 26 Apr. 2020.
8
Loan Term
●For LGUs, water districts, public institutions, and electric
cooperatives – up to 15 years inclusive of 3 years grace period
●For Private Institutions – up to 10 yrs inclusive of 3 yrs grace period
●For permanent working capital – up to 5 yrs with 1 year grace period
Fees and Other
Charges
Front-end fee, commitment fee, and prepayment fee will all be waived. This
condition is not applicable for loan take-out purposes.
Opening of
Bank Account
Opening of a bank account with DBP where loan proceeds shall be credited
and for other loan related transactions.
Mode of
Payment
Term loans shall be payable on monthly or quarterly basis depending on
the project cash flows
Documentary
Requirements
4
A. Preliminary documents or information
1. Application letter or letter of intent to apply for a loan
2. Financial statements (F/S) for the last 4 years including notes and
supporting schedules, duly audited for the Banko Sentral ng
Pilipinas (BSP) or SEC-accredited external auditor and its related
companies (subsidiaries and affiliates), solo and consolidated, if
applicable. The financials should be duly acknowledged and
received by the Bureau of Internal Revenue (BIR)
3. Latest General Information Sheet (GIS)
4. Copy of Latest Annual Report, if any
5. Latest in-house or interim financial statements of the financial
institution and its related companies (subsidiaries and affiliates),
solo and consolidated, if applicable, duly acknowledged and
received by the BIR labeled as Annex A.1
B. Additional documents and information
1. Brief write-up on company history and background
2. BSP submitted resume of the Board of Directors or key officers
(include name of spouse, middle name and birth date of both
officer and spouse) with photos and short background
3. Organizational structure and manpower complement or number of
branches and location
4. Products or services offered
5. Copy of the latest Income Tax Return (ITR) of the microfinance
institution duly stamped and received by the BIR
6. Borrower / mortgagor / third party mortgagor / surety / guarantor
to present valid ID for photocopying of the DBP Account Officer,
Photocopy of the valid IDs shall be stamped “original ID presented”
by the DBP Account Officer
7. List of referred creditors (Banks/financing companies or private
parties); State name/institution, amount, date approved,
maturity/expiry date, collateral, interest rate and outstanding
principal balance
4 "Financial Institutions - DBP." https://www.dbp.ph/wp-content/uploads/2018/07/Financial-Institutions.pdf. Accessed 28 Apr. 2020.
9
8. Sample promissory note of the borrower/ PFI presenting the
assignability clause or any document to this effect
9. Latest report submitted to BSP on DOSRI past due loans (with
attached report on DOSRI profile)
10. Latest computation of risk-based capital adequacy ratio covering
credit risk (BSP Cir No. 280)
11. Latest status report on past due loans or NPls, loan loss
provision/valuation reserve or Bank's Certification on its
compliance to BSP's loan loss provision/ valuation reserves
12. Latest weekly report of required and available reserves against
deposit liabilities or Certification that the Bank is not deficient in
bank reserves for the last six (6) months preceding the filing of
application
13. Top 10 borrowers, their names, and amount borrowed
14. Latest information on bank's Business Continuity Plan and Policies
on risk management (if not disclosed in the annual report)
15. List of projects in the pipeline
16. Details of the Top 10 past accounts/non-performing loans as
follows: Name of borrowers, amount of outstanding loan, industry
sector/ classification, collateral, and plan of action
17. Latest Business Permit
18. List of affiliates/subsidiaries/related companies & percentage of
ownership labeled as Annex A.2
19. Waiver of confidentiality of client information and/or an authority
of the Bank to conduct random verification with the BIR in order to
establish authenticity of the ITR and accompanying financial
statements submitted by the client and authority to provide and
obtain credit information to/from credit bureaus and other
banks/creditors, labeled as Annex A.3
20. Accomplished Wolfsberg AMLA Questionnaire labeled as Annex A.4
21. Latest SEC submitted Corporate Governance labeled as Annex A.5
C. Additional Documents or Legal Documentation
1. Duly notarized Board resolution or Secretary' s Certificate attesting
to the passage of Board resolution authorizing the borrowing of a
certain amount of money and designating its signing officer, with
their specimen signature, with full authority to negotiate and agree
to all terms and conditions of the loan agreement and other related
documents. Certified true copies of Articles of Incorporation, SEC
Registration and By-Laws with amendments, if applicable
2. Articles of Cooperation, By Laws and CDA Registration, if applicable
3. Certified true copy of Banking License or Certificate of Authority
from BSP to engage in financial intermediation
4. TIN of Corporation
5. Opinion of Legal Counsel
10
Contact
Details
For more information, you may contact the following:
Paul D. Lazaro
Head, Lending Program Management Group
Tel. Nos.: (02) 8893-3545 (dl), (02) 8818-9511 local 3310/3311
E-mail: pdlazaro@dbp.ph
Rustico Noli D. Cruz
Head, Program Development and Management I Department
Tel. Nos.: (02) 8893-9745, (02) 8818-9511 local 3328
E-mail: rndcruz@dbp.ph
Carla Gianca C. Gonzales
Program Officer, Program Development and Management I Department
Tel. Nos.: (02) 8818-9511 local 2379
E-mail: cgcgonzales@dbp.ph
11
The Expanded Survival and Recovery Assistance (SURE Aid) Program of the
5
Agricultural Credit Policy Council (ACPC)
Eligible
Borrowers
Small farmers and fisherfolk and their cooperatives or organizations whose
livelihood was affected by the calamity
Loan Amount
Up to P25,000 per borrower
Interest Rate
0% interest rate
Loan Term
Not to exceed 3 years;
Term to be determined by the lending conduit depending on the gestation
of the project financed and capacity of the borrower to repay the loan
Documentary
Requirements
6
Preliminary Requirements
1. Letter of Application with notarized Board Resolution authorizing
the cooperative/ association/ NGO to apply as Lending Conduit and
designating its authorized signatories to enter into an agreement
with ACPC and Organizational Profile
2. Endorsement from the DA Regional Field Office
3. Certificate of Registration from Securities and Exchange
Commission, Cooperative Development Authority with Certificate
of Compliance or Department of Labor and Employment
4. Authenticated Copy/Certified True Copy of the latest Articles of
Incorporation or Articles of Cooperation as the case may be,
showing the original incorporators/organizers
5. Secretary’s Certificate for Incumbent Officers together with the
Certificate of Filing with the SEC/Certificate of Approval by CDA
6. Audited financial reports for the past 3 years preceding the date of
project implementation. For NGO/PO which has been in operation
for less than 3 years, financial reports for the years in operation
and proof of previous implementation of similar projects.
7. Disclosure of other related business, if any
8. Sworn Affidavit of the Secretary of the NGO that none of its
incorporators or officers is an agent or related by consanguinity or
affinity up to the 4th civil degree to the official of the agency
authorized to process or approve proposed MOA, and release funds
9. Certificate of Good Credit Standing from LBP/DBP/SBGFC including
amount of line and status, if any
10. Certification as to bank’s latest CAMELS and Management Rating
with consent from the bank for ACPC to validate such rating with
the Banko Sentral ng Pilipinas
5 "SURE | Agricultural Credit Policy Council." 11 Apr. 2020, http://acpc.gov.ph/sure/. Accessed 27 Apr. 2020.
6"Service Charter - Agricultural Credit Policy Council." http://www.acpc.gov.ph/wp-content/uploads/2018/11/ACPC-SERVICE-
CHARTER.pdf. Accessed 28 Apr. 2020.
12
Fund Approval and Release
1. Notice of Fund Approval
2. Letter request of Lending Conduit for Fund Release with List of
Small Farmers and Fisherfolks (SFF) affected by the calamity as
endorsed by DA-RFO
3. Proof of deposit account opening with attached (1) Board
Resolution for the opening of the separate bank account SURE
4. Executed and notarized Memorandum of Agreement
Fund Withdrawal and Disbursement of Loans
1. Letter request for fund withdrawal with verified list of borrowers
with approved loans
2. Enrollment Forms and Promissory Notes (PNs)
3. Loan Disbursement Report
4. Loan Collection Report
Contact
Details
7
For more information, you may contact:
Ramon C. Yedra Deputy
Executive Director IV, Office of the Executive Director
rcyedra@acpc.gov.ph
Tel. No. local 107, 636-3392
7"Service Charter - Agricultural Credit Policy Council." http://www.acpc.gov.ph/wp-content/uploads/2018/11/ACPC-SERVICE-
CHARTER.pdf. Accessed 28 Apr. 2020.
13
Production Loan Easy Access (PLEA) Program of the Agricultural Credit Policy Council
8
Eligible
Borrowers
Marginalized and small farmers, fisherfolk, and livestock raisers and their
cooperatives or organizations whose livelihood was affected by the calamity
Small Farmers - own, amortize not more than 3 hectares, tenants,
leaseholders, stewards, or engaged in backyard poultry and livestock
raising (Presidential AO 21-2011, IRR of RA 8425)
Farmworker - a person who renders service for value as employee or laborer
in an agriculture enterprise or farm regardless whether his compensation is
paid on a daily, weekly, monthly, or “pakyaw”basis and includes regular or
seasonal farm workers (Section 3, IRR of 6657, CARL 1998)
Fisherfolk - directly or indirectly engaged in fishing, taking, culturing or
processing fishery/aquatic resources (Presidential AO 21-2011, IRR of RA
8425)
Loan Amount
Maximum of P50,000 for short term crops or commodities
Maximum of P150,000 for high value crops and long gestating crops
Interest Rate
6% per annum; The interest is not deducted in advance from the loan
Loan Term
Loan maturity depends on the crop or commodity
Loan Payment
Loan repayment schedule is based on cash flow
Additional
Information
The loan is non-collateralized for all agri-fishery production. All insurable
agri-fishery crops or commodities is covered by free insurance from the
Philippine Crop Insurance Corporation (PCIC)
Documentary
Requirements
9
Preliminary Requirements
1. Letter of Application with notarized Board Resolution authorizing
the cooperative/ association/ NGO to apply as Lending Conduit and
designating its authorized signatories to enter into an agreement
with ACPC and Organizational Profile
2. Endorsement from Department of Agriculture Regional Field Office
3. Certificate of Registration from Securities and Exchange
Commission (SEC), Cooperative Development Authority (CDA) with
Certificate of Compliance, or Department of Labor and Employment
(DOLE), as the case may be,
8"PRODUCTION LOAN EASY ACCESS (PLEA) | Agricultural ...." 8 Apr. 2020, http://acpc.gov.ph/faq-production-loan-easy-access-plea/.
Accessed 27 Apr. 2020.
9"Service Charter - Agricultural Credit Policy Council." http://www.acpc.gov.ph/wp-content/uploads/2018/11/ACPC-SERVICE-
CHARTER.pdf. Accessed 28 Apr. 2020.
14
4. Authenticated Copy/Certified True Copy of the latest Articles of
Incorporation or Articles of Cooperation as the case may be,
showing the original incorporators/organizers
5. Secretary’s Certificate for Incumbent Officers together with the
Certificate of Filing with the SEC/Certificate of Approval by CDA
6. Audited financial reports for the past three years preceding the
date of project implementation. For NGO/PO which has been in
operation for less than three years, financial reports for the years in
operation and proof of previous implementation of similar projects
7. Disclosure of other related business, if any
8. Sworn Affidavit of the Secretary of the NGO that none of its
incorporators or officers is an agent or related by consanguinity or
affinity up to the 4th civil degree to the official of the agency
authorized to process or approve proposed MOA, and release funds
9. Certificate of Good Credit Standing from LBP/DBP/SBGFC including
amount of line and status, if any
10. Certification as to bank’s latest CAMELS and Management Rating
with consent from the bank for ACPC to validate such rating with
the Banko Sentral ng Pilipinas
11. Board - Approved Lending Policy and Procedure
Fund Approval and Release
1. Notice of Fund Approval
2. Letter request of Lending Conduit for Fund Release with List of
Borrowers with approved loans for Type 2 Lending Conduits or Loan
Targets for Type 1 lending conduits
3. Proof of deposit account opening with attached (1) Board
Resolution for the opening of the separate bank account exclusively
for PLEA; (2) Deed of Assignment of the deposit account to the ACPC
4. Executed and notarized Memorandum of Agreement (MOA) and
Board Resolution approving the PLEA Policies/Guidelines
Fund Withdrawal and Disbursement
1. Letter request for fund withdrawal with verified list of borrowers
with approved loans
2. Enrollment Forms and Promissory Notes (PNs)
3. Loan Disbursement Report
4. Loan Collection Report
Contact Details
For more information, you may contact:
Ramon C. Yedra Deputy
Executive Director IV, Office of the Executive Director
rcyedra@acpc.gov.ph
Tel. No. local 107, 636-3392
15
Agrarian Production Credit Program (ACPC) of the Agricultural Credit Policy Council
10
Eligible
Borrowers
●Agrarian Reform Beneficiary Organizations (ARBOs)
●Farmer Organizations/People’s Organizations other than ARBOs with
ARB or ARB household members
●Other conduits such as cooperatives, NGOs, & rural banks only, with
ARB or ARB household members or APCP ineligible ARBOs as clients
Term of Loan
For agricultural and fisheries production
●Based on the cycle or cash flow of the project but not to exceed 7
years with grace period up to 3 years on the principal
●Semi-annual or annual crops - crops such as but not limited to rice
and corn with a production cycle not exceeding 1 year
●Plantation crops - crops such as but not limited to coffee, cacao,
and coconut which may have longer production cycle than 1 year
shall have a maximum term of 7 years
For working capital
●Based on operating cycle of the project depending on the cash flow
For Fixed Asset Acquisition
●Based on the project completion, cash flow, and remaining
economic useful life of the asset to be acquired, whichever is
applicable, but not to exceed 5 years
Eligible Projects
●Agriculture and fisheries production such as, but not limited to,
production of corn, sugarcane, coconut, cacao, coffee, livestock,
poultry and fishery projects
●Agri-enterprise and livelihood projects such as but not limited to,
trading and processing of agricultural crops and commodities
Max Number of
Projects
Maximum of 3 projects per borrower
Interest Rate
Short term loan: 8.5% per annum
Term loan: 9.5% per annum
Pass-on Rate to
End-Borrowers
Short term loan: 15% per annum
For term loan: 16% per annum
10 "Agrarian Production Credit Program (APCP) | Agricultural ...." 8 Apr. 2020, http://acpc.gov.ph/agrarian-production-credit
-program-apcp/. Accessed 27 Apr. 2020.
16
Penalty on Late
Payment
3% per annum
Incentive
Interest rebate of 2% per annum based on the principal amount paid
provided that the subject loan amortization is paid on time and that the
prescribed pass-on rate is adhered to.
Collaterals and
Securities
●Assignment of Promissory Notes plus underlying collaterals
●Assignment of insurance proceeds/guarantee claims/hold-out on
deposit
●Chattel mortgage as object of financing (if any)
Contact Details
ACPC Secretariat: (02) 636-3391
17
Pondo sa Pagbabago at Pag-asenso (P3) of Small Business Corporation
11
Eligible Borrowers
Corporations, cooperatives, or banks with license to engage in lending
Qualification
Criteria
1. May be regulated by the Securities and Exchange Commission
(SEC), Banko Sentral ng Pilipinas (BSP), or the Cooperative
Development Authority (CDA)
2. Must be at least one year as a microfinance institution
3. Must have a Board of Directors, management team, and with
retail lending unit in place
4. With positive net income for the last 12 months
5. Asset size of up to P5 billion
6. Past due rate should be 20% net of Provisioning
7. Maximum capitalization of at least P500,000
Credit Line Limit
Maximum P500 million
Credit Line Term
1 year subject to annual review
Interest Rate
2% per annum
Promissory
Note Term
Up to 24 months
Payment Term
Monthly or Quarterly
Mode of Payment
Post-dated Checks
Documentary
Requirements
1. Audited Financial Statements not more than 18 months old
2. Interim Financial Statements not more than 6 months
3. Valid business registration papers
4. Board Resolution with authorized signatories to borrow from
Small Business Corporation
5. Schedule of borrowings including details on terms of payment,
collateral cover, and credit
6. Duly accomplished loan application
7. Proof of organizational capability
Contact Details
12
Please refer to bit.ly/P3Directory for the complete directory of P3
provincial coordinators. The contact details are categorized into 5
sections corresponding to their locality of lending operations: South
Luzon, North Luzon, Central Luzon, Visayas, and Mindanao.
11 "pondo sa pagbabago at pag-asenso - Small Business ...." https://www.sbgfc.org.ph/sites/default/files/P3%20Official
%20Presentation.pdf. Accessed 27 Apr. 2020.
12 "P3 Provincial Coordinators - Small Business Corporation." https://www.sbgfc.org.ph/sites/default/files/P3%20Directory%
20page%202.pdf. Accessed 27 Apr. 2020.
18