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

The implementation of micro financing and SME lending programs by various institutions is generally recognized as an essential tool in stimulating entrepreneurial activities. Through this compendium, the Bureau of Small and Medium Enterprise Development (BSMED) aims to increase the Filipino entrepreneur's awareness on sources of funding available from government and private sector institutions for his business, and encourage him to access these facilities based on the capabilities of his enterprise. This menu of financial services will hopefully develop and strengthen the ability of MSMEs to better manage their operational activities and possibly embolden them to cater to areas beyond their traditional markets.

This compilation is an initiative of BSMED under the Department of Trade and Industry (DTI).

View the latest listing here