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

SME-FEASIBLE (Financing for Enterprising and Able Start-Ups With Innovative Business)

Program Title: SME-FEASIBLE (Financing for Enterprising and Able Start-Ups With Innovative Business)

Program Objective: A direct lending facility for start-up domestic entrepreneurs.

Eligible Borrowers:

• Filipino-owned enterprise, in the case of corporation must be at least 60% Filipino-owned;
• Project to be financed not into farm-level agri-aqua production, extractive activities or vice-generating operations;
• Must be willing and able to finance at least 50% of the cost of the start-up project; and,
• Should have a business plan, which the borrower should be able to expound on and to defend.

Priority Projects:

• The product or service prototype has already been produced and market-tested by the borrower.
• The technology set-up of the project is endorsed by the Department of Science and Technology (DOST).

Loan Purpose:

• Fixed Asset Acquisition
  • Building construction/improvement
  • Equipment/vehicle acquisition
  • Lot acquisition (limited to 25% of total loan)
• Working Capital (either amortized or credit line)

Terms/Requirements:

Amount:

• Minimum of P200,000.00
• Up to 50% of total project cost; the other 50% should be financed by equity
• Not more than P1.5 Million

Interest Rate:

• Up to 1 year - 9.5% per annum
• Up to 3 years - 13.8% per annum
• Up to 5 years - 14.5% per annum

Service Fees (to be deducted from loan proceeds; no front-end fees):

• Evaluation Fee - Y2 of 1% of approved loan but not less than P3,000
• Processing Fee - V2 of 1% of loan release
• Out-of-town processing fees
  • None for Metro Manila, Cebu and Davao
  • P2,000 for the CALABAR and Region 3 provinces
  • P4,000 or actual air fare for the rest of the country

Commitment Fee:   Dated check amounting to P4,000

Maturity / Repayment:     Term loan; maximum of 5 years, with up to one year grace period on principal;  monthly or quarterly amortization

Security: Real estate, Motor vehicle or fixed assets to be financed by the loan

Documentary Requirements Upon Loan Application:

• Accomplished business loan application form (with picture)
• Notarized client information sheet
• Business registration papers Business Plan
• Applicable endorsement
• Location map of the project

Endorsement Requirement (any of the following):

• Department of Science and Technology (DOST) - for Filipino investors
• Philippine International Trading Corporation - for drugstores accredited under the Botika ng Bayan Program
• DTI-Provincial Office
• No need for endorsement for enterprises based in NCR, CALABAR provinces, Bulacan, Davao and Cebu

Contact Details:

Small Business Corporation (Small Business Guarantee and Finance Corporation)
17th & 18th Firs, Antel Corporate Centre
139 Valero Street, Salcedo Village, Makati City

Direct Lending Program
Ma. Luna C. David
QIC - Finance and Guarantee Sector
Phone: (02) 751-1888
Fax: (02) 813-5726, 894.1677
Email:   ldavid@sbgfc.org.ph