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

SSS Financing Program for Educational Institutions

Program Title: SSS Financing Program for Educational Institutions

Program Objectives:

• To improve access to better educational facilities by providing long-term financial assistance to private educational institutions through the SSS accredited conduit banks / participating financial institutions (PFIs);
• To enhance the country's economic productivity thru the development of a larger pool of professionals and skilled workers to support the country's industrial and agricultural expansion; and
• To complement the government's aim to achieve a better distribution of educational institutions nationwide.

Eligible Borrowers: New or existing private educational institutions in the elementary, secondary, or collegiate/university level which are duly licensed by the Department of Education (DepEd) or the Commission on Higher Education (CHED), may borrow under the program and the borrowing institution must:

• Be at least 60% Filipino-owned;
• Have a proven track record of profitability;
• Maintain a debt-to-equity ratio of 75:25 after financing;
• Be an SSS member-employer of good standing; and,
• Not have defaulted in the payment of any loan obligations or securities.

Loan Purposes:

• Construction of new school buildings including gymnasium, library and other facilities related to school's operations (sports complex, multi-purpose hall, covered court, track and field, etc.);
• Completion or improvement of existing school buildings; Acquisition or repair/upgrading of school equipment and machinery;
• Repair and reconstruction of school buildings damaged by recent calamities; and
• Acquisition of land.

Terms/Requirements:

Amount: The maximum loanable amount shall be 75% of the total project cost but not to exceed P150.0 Million for primary and secondary schools, P250.0 Million for colleges, and P350.0 Million for universities.

For land acquisition, the loanable amount is up to 40% of its cost but not to exceed 40% of SSS loan.

Interest Rates : Subject to review every five years

Maturity / Repayment: The loan is payable within ten (10) years including a grace period of three (3) years on the principal. The principal balance will be amortized monthly, quarterly or semi-annually together with the interest based on the cash flow projections.

Security: Preferably by a Real Estate Mortgage on the borrower's property or any collateral acceptable to the PFIs.

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