Financing Programs Loans and Financing Programs for Micro, Small and Medium Enterprises

Agro-Industry Modernization & Credit Financing Program

Created in 1997 by virtue of Republic Act 8435 or the Agriculture and Fisheries Modernization Act, the AMCFP is the government’s umbrella financial system for agriculture and fisheries. It caters to small farmers, fisherfolk, those engaged in food and non-food production, processing and trading, cooperatives, farmers’ and fisherfolk’s organizations and small and medium enterprises or SMEs engaged in agriculture and fisheries.

How The Program Works

Implementation of the AMCFP is overseen by the ACPC. Under its framework, government financial institutions, provide wholesale loans for agriculture and fisheries projects to private rural financial institutions, which, in turn lend directly to individual farmers and fisherfolk.

Objective

To provide financing assistance to individual farmers, fisherfolk, urban and rural poor who have projects in palay, corn, soybeans, high-value crops, poulty, livestock, or fisheries.

Eligible Borrowers (Minimum Requirements)

• Must be 18 to 65 years old;
• Residing in the community for at least one (1) year;
• Must have sufficient knowledge or experience in the project.

Eligible Projects

1. Agriculture and fisheries production including processing of fisheries and agri-based products and farm inputs;
2. Acquisition of work animals, farm and fishery equipment and machinery;
3. Acquisition of seeds, fertilizers, poultry, livestock, feeds and other similar items;
4. Procurement of agriculture and fisheries products for storage, trading, processing and distribution;
5. Acquisition of water pumps and installation of tube wells for irrigation;
6. Construction, acquisition and repair of facilities for production, processing, storage, transportation, communication, marketing and such other facilities;
7. Working capital for agriculture and fisheries graduates to enable them to engage in agriculture and fisheries-related economic activities;
8. Agribusiness activities which support soil and water conservation and ecology-enhancing activities;
9. Privately-funded and LGU-funded irrigation systems that are designed to protect the watershed.
10. Working capital for long-gestating projects; and
11. Credit guarantees on uncollateralized loans to farmers and fisherfolk.

Loanable Amount

• For production loans, loan amount shall not exceed P50,000.00 per beneficiary;
• For marketing, processing or acquisition of facilities, loan amount shall depend on the project cost or cash flow of the project.

Interest rate: Maximum of five percent (5%) per annum
Service fee: Maximum of sixteen percent (16%) per annum

Terns and documentary requirements: varies depending on each lending conduit

List of Lending Conduits

For more information, contact:

Agricultural Credit Policy Council
28th Floor, One San Miguel Ave. Bldg.,
San Miguel Ave., Ortigas Center, Pasig City
Tel. No. (02) 634-3391/93; 634-3320 to 21
Email: acpcinfo@yahoo.com
Web: www.acpc.gov.ph