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

The SSS Special Financing Program

Program Title:   The SSS Special Financing Program

Program Objectives:

• To address the unavailability of credit facility to the business sector by making funds available through the SSS accredited conduit banks / participating financial institutions (PFIs) which will on-lend the fund to eligible borrowers;
• To encourage the formation and growth of barangay micro business enterprises; and
• To generate employment.

Eligible Borrowers:

• New or existing micro, cottage, small and medium enterprises including registered Barangay Micro Business Enterprises (BMBEs) as well as entities with asset size of not more than P200.0 Million;
• Enterprises engaged in agribusiness, manufacturing, utilities, transportation and communications, commercial production, particularly of food and basic consumer items, and products for export, trading, and service-oriented enterprises; and
• SSS member-employer of good standing.

Loan Purposes:

• Construction or renovation or expansion of building;
• Acquisition or upgrading of machinery and equipment;
• Acquisition of land; and
• Working Capital.

Terms/Requirements:

Amount:   Maximum loan of P50.0 Million. For land acquisition, the loanable amount is up to 40% of its cost but not to exceed 40% of SSS loan.

Interest Rate (subject to review every five years):

• To PFI:
  • 1 year - 7%
  • over 1-3 years -  9%
  • over 3-5 years - 10%
  • over 5 years   - 11%
• To End-user/ Borrower: PFI's option.

Maturity / Repayment: Maximum often (10) years, in equal monthly, quarterly or semi-annual payments, which may include a two (2) year grace period on principal payment, if warranted. Loan to BMBEs may be amortized monthly or quarterly depending on the cash flow projections of the borrower.

Security: Any collateral acceptable to the PFIs. However, loan to BMBEs, if not secured by hard collateral, may also be secured by the Small Business Corporation (SB Corporation) Guaranty.

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