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

Industry Loan Program

Program Title: Industry Loan Program (Under the PFIs Omnibus Credit Line)

Program Objectives:

• To contribute to the national recovery effort by providing financial assistance to selected companies through the SSS accredited conduit banks / participating financial institutions (PFIs);
• To create employment opportunities by increasing the capacity utilization or modernization of plant and equipment of selected companies; and
• To further diversify SSS investments and to efficiently use its resources consistent with its earnings, liquidity and risk targets.

Eligible Borrowers: Existing and Start-up enterprises with the following qualifications:

• Engaged in Agribusiness (contract growing, aquaculture), Food Processing (rice, oil, feedmill, meat processing), Manufacturing (garments, ceramics, textile, furniture, construction materials, etc.), Service Oriented Enterprises (transportation, warehousing, utilities, etc.), Tourism Related Projects (hotels, resorts, theme parks, etc.), and Real Estate Development Projects (industrial estate development, commercial);
• Have an asset size of at least P60.0 million;
• Have a debt-equity ratio not exceeding 75/25 after financing;
• Have proven track record of profitability;
• Be at least 70% Filipino-owned, for corporation;
• Not have defaulted in the payment of interest on any of its debts, securities or loans; and
• SSS member-employer of good standing

Loan Purposes:

• Modernization of plant and equipment resulting to an increase in production capacity;
• Civil works and construction of building.
• Increasing capacity utilization of existing firms;
• Additional / new capacity; and
• Acquisition of land.

Terms/Requirements:

Amount: Minimum of P51.0 Million; Maximum of P500.0 Million (75% of the requirement of the project but not to exceed P500.0 Million or loan value of collateral whichever is lower). For land acquisition, the loanable amount is up to 40% of its cost but
not to exceed 40% of SSS loan.

Interest Rate: subject to review every five (5) years

• To PFI:
  • over 1-3 years - 9%
  • over 3-5 years - 11%
  • over 5 years      -    12%
• To End-user: PFI's option.

Maturity / Repayment: Maximum often (10) years, in equal monthly, quarterly or semi-annual payments depending on the cash flow requirements of the project. Grace period for amortization of the principal may be given on a case-to-case basis, but not to exceed three (3) years.

Security: Real Estate/Chattel Mortgage and other collaterals 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.ph