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

Micro-Lending Through Lead Micro Finance Institutions

Program Title: Micro-Lending Through Lead Micro Finance Institutions (MICRO-LEAD)
Eligible Borrowers:

• Large Micro Finance-Oriented Institutions
  • Minimum track record in micro-finance: ten (10) years inclusive of prior organizational set-up
  • Minimum number of micro-finance clients: 20,000; if wholesaler, 20 conduits
  • Minimum manpower in micro-finance operations: 100; if wholesaler, 20
  • Minimum asset size of P100.0 Million
  • Minimum current ratio of 1:2
  • Maximum debt-equity ratio of 70:30 after loan
• Medium Micro Finance-Oriented Institutions
  • Minimum track record in micro-finance: 3 years
  • Minimum number of micro-finance clients: 3,000; if wholesaler, 10 conduits
  • Minimum manpower in micro-finance operations: 20; if wholesaler, 10
  • Minimum asset size of P15.0 Million o Minimum current ratio of 1:2
  • Maximum debt-equity ratio of 70:30 after loan

Loan Purpose: For re-lending to micro-entrepreneurs. Terms/Requirements:

Amounts:

• Large Micro Finance-Oriented Institutions - Minimum of P15.0 Million;Maximum of P100.0 Million for the 1st year with SB Corporation; double of first year for succeeding years with SB Corp.
• Medium Micro Finance-Oriented Institutions - Minimum of P3.0 Million;Maximum of P50.0 Million for the 1st year with SB Corporation; double of first year for succeeding years with SB Corp.

Loan Availment per Drawdown:

• Large Micro Finance-Oriented Institutions - Minimum of 5% of credit line; Maximum of 20% of credit line
• Medium Micro Finance-Oriented Institutions - Minimum of 5% of credit line; Maximum of 20% of credit line

Interest Rate:

• Large Micro Finance-Oriented Institutions - 2.5% points less than retail lending rate
• Medium Micro Finance-Oriented Institutions - 2.0% points less than retail lending rate

Service Fees:

• Large Micro Finance-Oriented Institutions:
  • Evaluation Fee (once a year) - 0.05% of loan amount
  • Availment Processing Fee - 0.1% of availment
  • Out-of-town Processing Fee - same as retail lending
• Medium Micro Finance-Oriented Institutions:
  • Evaluation Fee (once a year) - 0.05% of loan amount
  • Availment Processing Fee - 0.1% of availment
  • Out-of-town Processing Fee - same as retail lending

Total Effective Rate (excluding out-of-town processing fee):

• Large Micro Finance-Oriented Institutions - 9.15% per annum
• Medium Micro Finance-Oriented Institutions - 9.65% per annum

Contact Details

Ms. Luna C. David, OIC - Finance and Guarantee Sector
Small Business Corporation (Small Business Guarantee and Finance Corporation)
17 & 18 Firs, Antel Corporate Centre,
139 Valero Street Salcedo Village, Makati City
Phone: (02) 751-1888
Fax: (02) 813-5726, 894-1677
Email: ldavid@sbgfc.org.ph
Web: www.sbgfc.org.ph