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

Medium and Long Term – Direct Lending Program (MLP-DLP)

Program Title: Medium and Long Term - Direct Lending Program (MLP-DLP)
Program Objective: To grant medium and long term loans to exporters to finance asset acquisition, expansion, modernization of production techniques and improvement of production capacity.

Eligible Borrowers:

• SME engaged in processing, production, manufacturing, marketing or trading of products or rendering services directly or indirectly for export;
• Directly or indirectly exporting the product which is the subject of financing for at least two years;
• Satisfactory credit performance based on bank checkings and no substantial derogatory record;
• Maximum debt-equity ratio of 3:1 after financing. Minimum networth of P500.000.00; and
• Profitable operations in the immediately preceding two (2) years.

Loan Purposes:

• Purchase of machinery and equipment; Acquisition or construction of plant and building;
• Permanent working capital; and, Acquisition of land to be used as project site.

Terms/Requirements:

Amount: Actual needs but in no case more than P40.0 Million. However, not more than 50% of the loan maybe used in the acquisition of land to be used as project site.

Interest Rate:   PHILEXIM lending rate which may be fixed or on floating rate basis.

Maturity / Repayment:

• Medium Term Loan - More than one (1) year up to five (5) years depending on the purpose of the loan.
• Long Term Loan - More than five (5) years up to ten (10) years depending on the purpose of the loan. Grace periods on the payment of principal may be allowed.

Security:

• Lien on project assets to be acquired;
• Real Estate and/or Chattel Mortgages;
• Assignment of marketable securities or instruments acceptable to PhilEXIM;
• Suretyship Agreement of principals or major stockholders of the corporation;
• Assignment of export proceeds;
• Export Credit Insurance (ECI); and, Other acceptable collaterals.

Processing Fee: A non-refundable processing fee of V£% of the amount applied for or P5.000 whichever is higher, payable upon filing of application.

Documents Required:

• Duly accomplished Loan Application Form and Client Information Sheet;
• Brief history/background write-up of the company;
• Income tax returns and audited financial statements for the last (2) years, if applicable, and interim financial statement, if the latest audited statement is more than six (6) months old;
• Cash flow projection after financing;
• Bank statements for the last twelve (12) months, if available; For Single Proprietorship:
  • DTI Registration and Business Permit for the current year.
• For partnership/Corporation:
  • Certified list of officers and specimen signatures;
  • SEC Registration, Articles of Incorporation/partnership and By-laws duly certified by the Corporate Secretary; and
  • Duly notarized Board Resolution authorizing officers of the company to sign, endorse and/or negotiate loan as well as open a current or a savings account with the conduit bank.
• Bank Certification of export negotiations for the past year;
• Feasibility Study or Business Plan with financial projections;
• Copy of title(s), tax declaration, tax receipt, location plan and other documents covering collaterals offered; and,
• Other documents that may be required.

Contact Details:

Philippine Export-Import Agency   (PHILEXIM)
17th Floor, Citibank Tower, Valero Street, Makati City
Contact Details: Account Management
Direct Lending Program (DLP)

SME-(NCR) :  Ms. Evelyn   M. Gatchalian, 893-0300
SME - (REGIONAL) : Mr. Alex Arabis,  893-4974 (Direct Line)
Fax Numbers: 893-4474/4480