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

Retail Countryside Fund (RCF I and II) Programs

Program Title: Retail Countryside Fund (RCF I and II) Programs
Program Objective: A credit facility from World Bank made available in pesos or US Dollars to private investment enterprises whose viable operations benefit the countryside. Proceeds of the loan fund will be directly relent to qualified sub-borrowers of LANDBANK through its commercial banking lending units (LUs).

Eligible Sub-Borrowers:

• Sole Proprietorship
• Partnership
• Corporation (at least 70% Filipino-owned)
• Cooperative/Association

Eligible Projects:

a. RCF I - Medium and long term needs of new or expansion subprojects located outside the National Capital Region (NCR) and Cebu City.

• Agriculture and Agri-related activities;
• Food or agro-processing ventures;
• Manufacturing activity;
• Service-oriented projects that support economic activity;
• Environmental protection-related projects;
• Tourism-related projects;
• Production distribution (trading); and,
• Property development project (socialized & low cost housing projects; commercial building for lease - not more than 3-storey high and lot area of not more than 1,000 sq. m.)

b. RCF II - Short, medium, and long term needs of new or expansion sub-projects and existing sub-projects located outside the NCR and Cebu City:

• Agriculture and Agri-related activities;
• Food or agro-processing ventures;
• Manufacturing activity;
• Service-oriented projects that support economic activity;
• Environmental protection-related projects;
• Tourism-related projects;
• Product distribution (trading); and
• Property development project (socialized & low cost housing projects; commercial building for lease - not more than 3-storey high and lot area of not more than 1,000sq. m.)

c. Projects located in NCR and Cebu City are eligible provided these are engaged in agriculture and agri-related activities.

Loan Purposes:

a.      RCF I

• Working capital (initial and/or incremental); o    Fixed asset investment (excluding acquisition of land); and, o    The fund may reimburse expenditures made within 90 days prior to date of receipt of loan application.

b.     RCF II

• Working capital (initial and/or incremental);
• Fixed asset investment (excluding acquisition of land);
• Special Financing Package which covers any or a combination of the following:
  • Extension of maturity period of existing loan;
  • Extension of grace period of existing loan; and/or,
  • Conversion of existing Dollar loan to Peso loan.
  • The fund may reimburse expenditures made within 120 days prior to date of receipt of loan application.

Terms/Requirements:

Amounts:

a.      RCF I

• Sub-loan size for Peso Loan - Minimum of P100,000.00; Maximum of P10.0 Million

b.     RCF II

• Sub-loan size for Peso Loan
• Minimum of P25.000.00
• Maximum of P100.0 Million (for priority projects)
• Maximum of P50.0 Million (for other sectors)
• Sub-loan size for Dollar Loan
• Minimum of US$25,000.00
• Maximum of P50.0 Million or US$ equivalent

Interest Rates:

• Floating/Variable rate
• Fixed rate (prevailing variable rate plus a premium based on the term of the loan)

Maturity / Repayment:

a      RCF I

• Medium Term (over one year) - Maximum of five years
• Long Term (over five years) - Maximum of 15 years (but not beyond September 15, 2015).

b.     RCF II

• Short Term - Maximum of one year o    Medium Term (over one year) - Maximum of five years
• Long Term (over five years) - Maximum of 15 years (but not beyond December 15, 2018)

Security: Tangible collaterals or acceptable guarantees consistent with current banking practices, pertinent laws and BSP regulations. All collaterals shall be insured against loss and destruction caused by fire or other calamities during the term of the loan with the LANDBANK as the beneficiary.

Fees and Charges:

• Commitment Fee: % of 1% p.a. of the unavailed loan balance for loans of P5.0 Million and above
• Prepayment Fee:  3% of the amount prepaid

Environmental Requirements: Project to be funded by RCF shall comply with all laws and regulations of the Philippines. The Environmental Unit shall review the environmental documents to determine if the project is environmentally acceptable.

Contact Details:

Special Programs Management Department (SPMD)
Phone:  (02) 405-7339, (02) 551-2200 locals 2448, 7640, or 7339
Fax:       (02) 528-8484
e-mail:    vcalderon@mail.landbank.com