Financing Programs

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 government’s 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;
• Have a proven track record of profitability;
• Maintain a debt-to-equity ratio of 75:25 after financing;
• Be 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 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
• Acquisition of land.

Terms/Requirements:

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.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 Rates : Subject to review every five years

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.

Security: Preferably by a Real Estate Mortgage on the borrower’s property or any collateral acceptable to the PFIs.

Contact Details:

Social Security System (SSS)
Institutional Loans Department (ILD)
SSS Building, East Avenue, Diliman, Quezon City
Phone: (02) 927.8249, 920-6401 locals 5115 or 5118
Email: marquezls@sss.gov.phph