SME-FLEXIBLE (Financing for Variable Business Expansions)
Program Title: SME-FLEXIBLE (Financing for Variable Business Expansions)
Program Objective: A direct lending facility for domestic enterprises to sustain, expand or improve their business operations.
Eligible Borrowers:
- Filipino-owned enterprise, in the case of corporation must be at least 60% Filipino-owned
- Asset size not less than P500,000 and not more than P100.0 Million (excluding the value of land)
- At least one year in operation
- Positive income for the past immediate year with BIR-filed net income of not less than P10,000
- Project to be financed not into farm-level agri-aqua production, extractive activities or vice-generating operations
- Latest financial ratios (based on in-house financials)
- At least 1:2 current ratio
- At most 70:30 debt-equity ratio
Loan Purposes:
- Fixed Asset Acquisition
- Building construction/improvement
- Equipment/vehicle acquisition
- Lot acquisition (limited to 25% of total loan)
- Working Capital
- Loan refinancing (except for loans from other government financial institutions)
Terms/Requirements:
Amount:
- Micro-enterprise – minimum of P200,000; Maximum of P1.5 Million
- Small Enterprise – up to P5.0 Million
- Medium – up to P10.0 Million
- Loan amount must not exceed:
- 70% of the project cost (30% must be in equity of the borrower
- 2X of networth of the borrower (based on latest in-house financial statement)
- 5X of net income of the borrower (based on latest in-house financial statement)
Interest Rate:
- Fully Secured Loans (p.a.)
- Up to 1 year – 9.5% per annum
- U to 3 years – 13.8% per annum
- Up to 5 years – 14.5% per annum
- Partially/At least 50% Secured Loans – Plus 1.0 % point
- Partially/Less than 50% Secured Loans – Plus 2.0 % points
- Additional premium on loan amounts exceeding 10x of BIR-filed net income
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 – 1/2 of 1% of loan release
- Out-of-town processing fee
- 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
Maturity / Repayment:
- Term Loan – maximum of 5 years, with up to one year grace period on principal; amortization is monthly or quarterly
- Transactional or One-Year Credit Line – up to 180 days term per drawdown
Security:
- Fixed assets to be financed by the loan must form part of the collateral. In case assets to be financed cannot be collateralized as in the case of leasehold improvements, there should be a substitute collateral.
- • In case of working capital loans, must be at least 80% secured by hard collateral (real estate which may be commercial, residential or agricultural, and to motor vehicles).
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 Applicable endorsement
- Location map of the project
Endorsement Requirement:
- DTI-Provincial Office
- SBC-accredited industry association
- 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
Mar 3rd, 2009 at 3:23 pm
Paano po maka pag avail nito kasi small tindahan lang po kami?
Apr 7th, 2009 at 11:32 am
It is my pleasure to introduce to you my bank, the Bank of Florida, Inc., A Rural Bank. Our bank ranks: No. 2 in Pampanga, No. 3 in Central Luzon and one of the TOP 10 rural banks in the country in terms of asset, resources and stability. Our bank’s mandate is to assist small and medium enterprises/business in thier financial needs. Our bank has packaged different loans facility to suit every SME’s needs. We offer loans with low and dminishing interest. Sample computation for you:
*sample computation of 1M Loan if paid in twelve (12) months:
Loan amount = 1M @ 13% assuming payment every 30 days
Payment of Principal + Interest * every 30 days for 12 months.
No. of
Outstanding
Monthly Principal
Monthly Interest
Total Monthly
Months
Balance
Amortization
Amortization
Amortization
1
1,000,000
83,333.33
10,833.33
94,166.66
2
916,666.67
83,333.33
9,930.56
93,263.89
3
833,333.34
83,333.33
9,027.78
92,361.11
4
750,000.01
83,333.33
8,125.00
91,458.33
5
666,666.68
83,333.33
7,222.22
90,555.55
6
583,333.35
83,333.33
6,319.44
89,652.77
7
500,000.02
83,333.33
5,416.67
88,750.00
8
416,666.69
83,333.33
4,513.89
87,847.22
9
333,333.36
83,333.33
3,611.11
86,944.44
10
250,000.03
83,333.33
2,708.33
86,041.66
11
166,666.70
83,333.33
1,805.56
85,138.89
12
83,333.37
83,333.37
902.78
84,236.15
T O T A L
1,000,000.00
70,416.67
1,070,416.67
*In this example, Loan amount is 1M with 13% interest, but since we offer Diminishing Interest. After one year of payment if calculated, total interest is 70,416.61 or ONLY 7.04% Total Interest. Indeed very favorable to YOU.
Should you be interested, it would be my pleasure to discuss with you (personally) further our products and services. Please feel free to call me 845-0832/845-0834. Erwin E. OlazoGlobal City BranchBank Of FloridaUnit 6, 3rd Flr. The Fort Strip Building26th Street Bonifacio Global CityTaguig
May 24th, 2009 at 1:47 pm
good day, i have my computer at copy center for almost 9 years and i want to expand to nearby town. now i need initial capital of 100,000.00 is it possible for me to have a loan? my location is in Pangasinan.
can you give me a call if you have a nearest branch here to inquire about this matter,.
thanks
Aug 26th, 2009 at 2:44 pm
hi, i am currently operation a school canteen in one of the universities here in Lucena City,Quezon. I’d like to seek financial assistance from you organization. May i know where I can call or visit? Thanks
Aug 26th, 2009 at 2:45 pm
hi, i am currently operating a school canteen in one of the universities here in Lucena City,Quezon. I’d like to seek financial assistance from your organization. May i know where I can call or visit? Thanks
Sep 6th, 2009 at 4:06 pm
any gov. agency can help us or give us an idea to finance our project in housing … one of my relative own a 2500 sqm. lot and its vacant as of this time now we are planing to buy this property to sub divide it and build our own house in this area … we are compose of 20 pilipino who are planing to buy and have this property and we are willing to settle the terms of payment in 2 to 5 years to some gov. agency who finance our project.. small comunity housing …. hope any one here can give us an idea how we canget the suficient fund to build this small comunity dream possible. this project is costing around 2 million pesos only to buy the property and sub divide it and documentation needed. your not just helping us but it also helping pilipinos home less to have their own property. more power to all goverment agency in the philippines…
CONTACT INFO: 09187981011 OR email@ buz_man_6900@yahoo.com
Nov 1st, 2009 at 6:49 pm
If you want to start a business or having an existing business and you want to avail a loan. The following documents must be prepared:
* Project Feasibility Study of the proposed business or exisitng business
* Business Name, Business Permits (Mayor, Brgy, BIR, etc)
* Collateral(Real Estate)
– Title
– Tax Declaration
– Tax Reciepts
– Tax Clearance
– Location Map, Boundary Survey
* Market Contract
* Letter of Intent
I am engaged in consultancy services and I can assist you in facilitating the requirements of your loan
You can contact me at 09085946641/09277922945 Dario Quitan