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

SME Unified Lending Opportunities for National Growth (SULONG)

Program Title: SME Unified Lending Opportunities for National Growth (SULONG)
Program Objective: The program is a financing strategy collaborated by PhilEXIM and other government financial institutions (GFIs) to provide SMEs access to financing under a uniform lending structure.

Eligible Borrowers:

• Small and medium exporters in all industries except trading of imported goods, liquor, cigarettes, and extractive industries;
• At least 60% Filipino-owned, whose assets are at least P500,000 but not more than P100.0 Million, excluding the value of the land or subject to ownership rules as defined under existing Philippine laws for specific industries;
• Positive income for the preceding year (if previous year's income is negative, the average income of past two or three years should be positive).
• No substantial derogatory record on the firm, its principals and officers; and
• Maximum debt-equity ratio of 80:20 after financing. For franchisees, the required ratio is 70:30.

Loan Purposes:

• Short-Term Loan - for export financing (export packing credit) or a credit line for temporary working capital; preferably transactional
• Long-Term Loan - Purchase of Equipment, Construction of a building/warehouse, Purchase of Lot, Permanent Working Capital

Terms/Requirements:

Loan Limits:

• Short-Term Loan - up to 70% of the value of the LC/PO (export packing), or 70% of working capital requirement (temporary working capital); maximum of P5.0 Million.   Subject to minimum loan requirement, which shall in no case exceed P1.0 Million.
• Long-Term Loan - 80% of the incremental project cost; maximum of P5.0 Million.

Interest Rates:     SULONG lending rate at the time of availment

Maturity / Repayment:

• Short-Term Loan - Maximum of one (1) year
• Long-Term Loan - Maximum of five (5) years, inclusive of a maximum  one year grace  period  on  principal  monthly amortization.

Security:

• Postdated Checks.
• Registered/unregistered Real Estate Mortgage/Chattel Mortgage.
• Assignment of LC or PO (if applicable).
• Guarantee cover
• Corporate Guarantee (if franchisee) Assignment of lease rights (if franchisee) Assignment of Life Insurance proceeds Other acceptable collaterals

Contact Details:

Philippine Export-Import Agency   (PHILEXIM)
17th Floor, Citibank Tower, Valero Street, Makati City
Contact Details: Account Management
Direct Lending Program (DLP)

SME-(NCR) :  Ms. Evelyn   M. Gatchalian, 893-0300
SME - (REGIONAL) : Mr. Alex Arabis,  893-4974 (Direct Line)
Fax Numbers: 893-4474/4480