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: To provide SSS members, belonging to the small and medium enterprises (SMEs) category, greater access to short and long-term funds through SSS accredited conduit banks/ participating financial institutions (PFIs) which will re-lend the fund to qualified SSS member-borrowers.

Loan Purposes:

• Short-Term Loan - export packing credit, and temporary working capital;
• Long-Term Loan - purchase of equipment, building or warehouse construction, purchase of lot, purchase of inventories or as permanent working capital

Eligible Borrowers:

• Existing private enterprises in all industries except trading of imported goods, liquor, cigarettes, and extractive industries like mining or quarrying;
• At least 60% Filipino owned;
• Asset size of not more than P100.0 million excluding land;
• Have positive income for the previous year (if previous year's income is negative, the average income of the past two or three years should be positive);
• Have debt-to-equity ratio of not more than 80:20 after financing, or 70:30 if borrower is a franchisee; and
• SSS member-employers of good standing.

Terms/Requirements:

Amount:

• Short-Term Loans - Up to 70% of the value of the Letter of Credit or Purchase Order for export packing, or 70% of the working capital requirement, or maximum of P5.0 Million.
• Long-Term Loans - Up to 80% of the incremental project cost, or maximum of P5.0 Million.

Interest Rates:

• Short-Term Loans
  • To PFI - Fixed rate based on prevailing 364-day T-bill Rate,
  • To End-user/ Borrower - PFI's option
• Long-Term Loans
  • To PFI - Over 1-5 yr. term loan based on the prevailing T-Bond rate but not to exceed 10% p.a.
  • To End-user/ Borrower - PFI's option

Maturity / Repayment:

• Short-Term Loans - Maximum of one (1) year.
• Long-Term Loans - Maximum of five (5) years with one (1) year grace period on principal payment.

Security:

a. Short-Term Loans

• Postdated Check
• Registered/Unregistered Real Estate Mortgage (REM) or Chattel Mortgage (CM)
• Assignment of Letter of Credit (LC) or Purchase Order (PO) (for export packing credit only)
• Assignment of Life Insurance
• Guarantee Cover
• Corporate Guarantee (if franchisee; for credit line-temporary working capital only)
• Assignment of Lease Rights (if franchisee; for credit line-temporary working capital only)

b. Long-Term Loans

• Postdated check
• Registered/Unregistered REM/CM
• Assignment of Life Insurance
• Corporate Guarantee (if franchisee)
• Assignment of Lease Rights (if franchisee)

Contact Details:

Social Security System (SSS)
Institutional Loans Department (ILD)
SSS Building, East Avenue, Diliman, Quezon City
Phone: (02) 927.8249, 920-6401 locals 5115 or 5118
Email: marquezls@sss.gov.ph