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

Franchise Funding for SMEs

The Phillipine government has launched 'SME Financing for Organizationally Competent and Excellent Franchise Businesses (Force)', a lending program which will assist entrepreneurs wishing to invest in franchises which are members of the Philippine Franchise Association. The program is supported by Small Business Corp, which will provide credit access to franchisees that are not eligible to secure new or additional financing from banking institutions due to insufficient collateral or other considerations.

“The programme is designed for franchisees of franchise firms that are members of industry associations like the Philippine Franchise Association,” says Department of Trade and Industry Undersecretary for SME (small and medium enterprises) Development Zorayda Amelia Alonzo, who is also Chairperson of Small Business Corp. “Along with other components of the SME agenda, this is our way of encouraging more aspiring entrepreneurs to go into franchising.”

Program Description

A direct lending facility of Small Business Corporation which aims to support various players in the franchising industry, including franchisors, franchisees and suppliers of franchisor-firms. The franchise concept may either be homegrown or international and must be a member of an SBGFC partner industry association.

Type of Facility

• Term Loan
• Transactional or One-year Credit Line

Eligible Borrowers

• Start up or expanding franchisee
• Start up franchisor
• Expanding franchisor
• Supplier of franchisor-firm

Loan Amount

• Minimum of P200,000
• Maximum of P10 Million
• Must not exceed 70% of the project cost

Purpose of Loan

• Fixed Asset Acquisition
• Building construction/improvement
• Equipment/vehicle acquisition
• Lot acquisition (limited to 25% of total loan)

Working Capital

Repayment Term

• Term Loan is maximum of 5 years, with up to one year grace period
• Transactional or One-year Credit Line up to 180 days term per drawdown
• To be amortized monthly or quarterly

Contact Details

Head Area Office

SB Corporation
17th & 18th Floors, 139 Corporate Center
139 Valero Street, Salcedo Village, Makati City, 1227 Philippines
Tel. Nos. (632) 751-1888 Fax No. (632) 813-5726

Visayas Head Office

Contact Person: Mr. Cesar Antoni
Unit 802-B Keppel Center, Cebu Business Park
Cebu City, Philippines
Tel. Nos. (032) 232-1200 Fax No. (032) 234-4500
Email: cantoni@sbgfc.org.ph

Mindanao Head Office

Contact Person: Mr. Alexander Bataller
2nd floor, Mintrade Building, Sales corner
Monteverde Streets, Davao City, Philippines
Tel. Nos. (082) 221-1488 Fax No. (082) 221-0858
Email: abataller@sbgfc.org.ph

Cagayan De Oro Desk Office
Contact Person: Mr. Marlon Tapongot
c/o DTI Region 10 Office
Corrales cor. Luna Sts., Cagayan de Oro City, Philippines
Tel. Nos. (088) 231-5703 Fax No. (088) 231-5703
Email: mtapongot@sbgfc.org.ph

Luzon Head Office

SB Corporation
(Bicol Desk Office)
Contact Person: Ma. Edena Diez
FEDMACSI Building
Panganiban Drive, Naga City, Philippines
TeleFax No. (054) 4739975
Email: mdiez@sbgfc.org.ph

For more info, visit sbgfc.org.ph