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

Micro-Lending Through Rural Banks

Program Title: Micro-Lending Through Rural Banks:  (MICRO-LOCAL)
Eligible Borrowers: Micro, Small and Medium Enterprise (MSME)-Oriented Rural Banks

• May be a start-up in micro-finance, but minimum of three (3) years as a bank
• Minimum number of micro-finance clients: If a start-up, should plan for at least fifty (50) clients
• Minimum manpower in micro-finance operations: If a startup, should plan for at least three (3)
• Minimum asset size: Per BSP guidelines
• Minimum current ratio of 1:2
• Maximum debt-equity ratio after loan:   Per BSP guidelines

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

• Amounts: Minimum of P200.000.00;   Maximum of P50.0 Million for the 1st year with SB Corp; double of first year for succeeding years with SB Corp
• Loan Availment per Drawdown:  Minimum of P100.000.00;   Maximum of P2.0 Million or 20%, whichever is higher
• Interest Rate: Retail lending rate less 0.5% if start-up in micro-finance;   up to 2.5% points less

Service Fees:

• Evaluation Fee (once a year) - 0.1% of loan amount but not less than P3.000.00
• Availment Processing Fee - 0.25% of availment but not less than P1.000.00
• Out-of-town Processing Fee - same as retail lending

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

• Large Micro Finance-Oriented Institutions - 9.35% per annum minimum; 11.35% p.a. maximum

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