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

Micro-Lending Through Small Micro Finance Institutions and Community Cooperatives

Program Title: Micro-Lending Through Small Micro Finance Institutions and Community Cooperatives (MICRO-LEAP)
Eligible Borrowers: NGOs/People's Organizations/Community Cooperatives

• Community Cooperatives
  • Minimum track record in micro-finance: one (1) year lending to members
  • Minimum number of micro-finance clients: 20 members lent to
  • Minimum manpower in micro-finance operations: two (2), one of whom may be part-time
  • Minimum asset size of P500.000.00; with net worth of at least P300.000.00
  • Minimum current ratio of 1:2 o Maximum debt-equity ratio of 70:30 after loan
• Lower Qualification Conduits
  • Minimum track record in micro-finance: one (1) year
  • Minimum number of micro-finance clients: twenty (20)
  • Minimum manpower in micro-finance operations: two (2), one of whom may be part-time
  • Minimum asset size of P300.000.00 (applicable to 20 priority provinces)
  • Minimum current ratio of 1:2 o Maximum debt-equity ratio of 70:30 after loan

Loan Purpose: For re-lending to micro-entrepreneurs.

Terms/Requirements:

Amounts:

• Community Cooperatives - Minimum of P200.000.00; Maximum of P10.0 Million for the 1st year with SB Corp; Double of first year for succeeding years with SB Corp
• Lower Qualification Conduits - Minimum of P200.000.00; Maximum of P5.0 Million for the 1st year with SB Corporation; Double of first year for succeeding years with SB Corp.

Loan Availment per Drawdown:

• Community Cooperatives - Minimum of P100,000.00; Maximum of P2.0 or 20%, whichever is higher
• Lower Qualification Conduits - Minimum of P100.000.00; Maximum of P1.0 or 20%, whichever is higher

Interest Rate:

• Community Cooperatives - 1.5% points less than retail lending rate
• Lower Qualification Conduits - 0.5% point less than retail lending rate

Service Fees:

• Community Cooperatives:
  • Evaluation Fee (once a year) - 0.2% of loan amount but not less than P3.000.00
  • Availment Processing Fee - 0.5% of availment but not less than P1,000.00
  • Out-of-town Processing Fee - same as retail lending
• Lower Qualification Conduits:
  • Evaluation Fee (once a year) - 0.5% of loan amount but not less than P3,000.00
  • Availment Processing Fee - 0.5% 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):

• Community Cooperatives - 10.7% p.a.
• Lower Qualification Conduits - 12.0% p.a.

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