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

SME-FIT (Financing for Information Technology Build-Up)

Program Title: SME-FIT (Financing for Information Technology Build-Up)

Program Objective: A direct lending facility of Small Business Corporation intended to help SMEs develop some degree of IT capability in terms of simple hardware facilities, software solutions, website development, other development services, and training and tutorial packages.

Eligible Borrowers:

• The IT provider must be a local SME corporation; IT provider refers to distributors of ready-made packages and services i.e. hardware, software, website development, and other development services
• With at least two (2) years profitable track record in the industry, with BIR-filed net income of not less than P10,000 for the past immediate year
• Asset size not less than P500.000 and not more than P100.0 Million (excluding the value of land)
• Latest financial ratios (based on in-house financials)
  • At least 1.2 current ratio
  • At most 70:30 debt-equity ratio

Terms/Requirements:

Loan Scheme: Loan shall be through a rediscounting scheme using IT providers as the conduit and primary borrower.

Amount:

• Shall be in a form of a Credit Line
• Up to P10.0 Million for medium-sized IT providers (with asset size of at least P15.0 Million based on ITR financials)
• Up to P5.0 Million for small IT providers

Availment:

• The IT provider shall avail of drawdowns on the credit line which shall be payable quarterly for not more than 18 months, inclusive of three months grace period on principal.
• Drawdowns shall have a sub-limit of P500,000 which should be liquidated prior to the next availment.
• The IT provider shall offer package offerings with not more than five (5) options, as supported by postdated checks (PDCs) of the SME buyer.
• The SME buyer should be required to make a deposit of at least 20% on the cost of the IT package; financing not to exceed P200.000 per SME buyer

Interest Rate (starting 1st Quarter 2006):

• Fully Secured Loans - 9.7% per annum
• Partially/At least 50% Secured Loans - Plus 1.0 % point
• Partially/Less than 50% Secured Loans - Plus 2.0 % points

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

• Evaluation Fee - 1/2 of 1% of approved loan but not less than P3,000
• Processing Fee - % 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

Security:

• Joint and Several Signatures (JSS) of the owners
• May be on a clean basis up to P1.0 Million, beyond which the loan should be at least 50% secured by hard collateral.

Documentary Requirements Upon Loan Application:

• Accomplished business loan application form (with picture)
• Notarized Client Information Sheet
• Latest in-house and BIR-filed financial statements
• Business registration papers Location map of the project

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