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

SME-FAST (Funding Access for Short Term Loans)

Program Title: SME-FAST (Funding Access for Short Term Loans)

Program Objectives: A wholesale short-term funding conduited through banking institutions with recourse to the bank. Its objectives are:

• To provide SMEs wider access to short-term credit by improving the over-all liquidity of the financial system; and
• To provide incentive to competitive SMEs by way of access to short-term loans with lower interest rates.

Eligible Borrowers:

• Enterprises with asset size of not less than P500.000 and not more than P100.0 million, excluding the value of land. Relatedly, the enterprise should not be a subsidiary or division of a large enterprise;
• The enterprise is at least 60% Filipino-owned; and
• All enterprises except those engaged in farm-level agriculture/ aquaculture production, in purely retail trading, in extractive industries, in vice generating activities and in housing.

Terms/Requirements:

Amount: Loan should be within P100 Thousand to P20.0 Million per individual borrower, provided that the amount to be rediscounted shall be up to 90% of the outstanding balance of the loan or up to P15 Million, whichever is lower.

Interest Rate: Shall be set monthly by SB Corporation. The date of availment shall determine the applicable interest rate.

Maturity/Repayment: Maximum of 360 days (short term). Repayment of both principal and interest, unless otherwise stated in the PN, shall be upon its maturity.

Security

• Real Estate Mortgage (REM) cover with loan value equivalent to at least fifty percent (50%) of the loan amount;
• Unencumbered time/hold-out deposits of at least equal to the loan amount;
• For accredited leasing companies, chattel mortgage (CHM) cover with loan value equivalent to at least 70% of the loan amount;
• From the Bank, there should be a Deed of Assignment with Recourse on all rights, interests and/or titles covering the rediscounted PN; and,
• Deed of Undertaking with Custodianship, if applicable.

Contact Details:

Mr. Hector M. Olmedillo
Vice President - Institutional Market Finance Group
Phone: (632) 751.1888
Fax: (632) 813.5726
e-mail:  holmedillo@sbgfc.org.ph