Small Business Guarantee and Finance Corporation (SBGFC)  

  • What is SME Unified Lending Opportunities for National Growth (SULONG) Programs?  
SULONG Program is the brand name for the financing initiatives under the Plan. Under SULONG, government financial institutions (GFIs) have allocated funds to be lent out to SMEs. This will be achieved through the following:

  • Standardized Unified Lending Program by GFIs for SMEs; and
  • Standardized Accreditation Program by GFIs for rural and thrift banks.
In addition, the 'One Town, One Product, One Million Pesos' Program of President Gloria Macapagal-Arroyo is also part of the Plan.

  • How can SMEs avail themselves of the funds being allocated by the government under SULONG?
SMEs can approach any of the following GFIs:

  1. Development Bank of the Philippines;
  2. Land Bank of the Philippines;
  3. National Livelihood Support Fund;
  4. Small Business Guarantee and Finance Corp.;
  5. Philippine Export-Import Credit Agency; and
  6. Quedan & Rural Credit Guarantee Corporation.
  • Will SULONG replace the other programs and products of the participating GFIs?
No, the loans under the SULONG program are IN ADDITION to the existing financial services of the participating GFIs.

  • Who qualifies to borrow under SULONG?
Enterprises in all industries except trading of imported goods, liquor, cigarettes and extractive industries. 

Enterprises that are at least 60% Filipino owned, whose assets are valued at not more than P100m, excluding the value of the land, or subject to ownership rules as defined under existing Philippine laws for specific industries.

  • What type of loans may be funded?
For short-term loans, the entrepreneur may tap the program either for export financing (export packing credit) or a credit line for temporary working capital. 

For long-term loans, SMEs may apply for loans for permanent working capital, or to purchase equipment, a lot, or to construct a building/warehouse.

  • What is the maximum financing?
For short-term loans, the program can fund up to 70% of the value of the letter of credit (LC)/Purchase Order (PO) (export packing), or 70% of working capital requirement (temporary working capital); maximum of P5.0m. 

For long-term loans, 80% of the incremental project cost, maximum of P5.0M.

  • What is the repayment term?
For short-term loans, a maximum of one year.

For long-term loan, a maximum of five years, inclusive of a maximum of one year grace period on principal monthly amortization.

  • Are collateral required? If so, what assets are acceptable?
The program will not decline a loan only on the basis of inadequate collateral. However, the borrower must be willing to mortgage any available business and personal collateral, including assets to be acquired from the loan, to secure the borrowing.

The following are acceptable collateral: postdated checks, registered/ unregistered real estate mortgage (REM) / chattel mortgage (CHM), or the assignment of life insurance. In addition, for franchisees, the following may be considered: corporate guarantee and assignment of lease rights.

If the loan purpose is for export packing credit, a borrower may assign his LC)/ PO or sales invoice.

  • What financial ratios/hurdles must a borrower meet?
The debt-equity ratio must at most be 80:20 after the loan. For franchisees, the required ratio is 70:30.  In addition, the borrower must show positive income for the preceding year. Should the SME borrower's financials show negative income in the past year, the GFI may consider their average income for the last two or three years.

  • What is the interest rate for loans under this program?
The participating GFIs will charge the same rate for the program based on a regular review. In its program launch, the interest rate for loan releases until June 30, 2003 shall be: 9% for short-term loans; 11.25% for medium-term loans of up to 3-years and 12.75% for loans over 3-years to five years.

  • Aside from the interest rate, what fees must be paid?
A one-time application and evaluation fee of P2,000 for every P1.0m, a front-end fee of 1% of approved loan, and a commitment fee of 0.125% of the unavailed balance for long term loans.

  • How long does it take to process the loan?
This will depend on the government financial institution (GFI). For example, SB Corp. can process the loan within two weeks after receipt of complete documentation.

  • What are the programs and services of the Small Business Corporation (SB Corp.) for SMEs?
At present, SB Corp. offers the following programs:

The Guarantees Program XE "SME:Guarantees Program"

This facility was designed to encourage financial institutions to lend to SMEs XE "SME" ) by providing guarantee cover up to a maximum of 85% on loans of qualified entrepreneurs.  The guarantee primarily works as a collateral substitute or as a collateral supplement.

  • SME-GEAR (Guarantee for Gearing-up Enterprises without collateral) is a credit-guarantee facility of Small Business Corporation for viable MSMEs who do not have hard collateral to secure their loans with accredited financial institutions (AFI). SME-GEAR is intended for borrowers who at their present stage of operations are not yet able to offer collateral security for their loan.
  • SME-GROW (Guarantee for Growing Enterprises with partial collateral) is a credit-guarantee facility of Small Business Corporation for viable MSMEs who can partially provide hard collateral to secure loans with accredited financial institutions (AFI). SME-GROW is intended to assist a borrower in its business expansion by way of the increased financing that can be granted by the AFI in view of the guarantee cover on the unsecured portion of the loan.
  • SME-GAIN (Guarantee for Gainful Enterprises with a available collateral) is a credit-guarantee facility of Small Business Corporation for viable MSMEs who have available hard collateral to partially or fully secure loans with accredited financial institutions (AFI). SME-GAIN is intended to assist mezzanine enterprises access loans from AFIs who need the guarantee cover to address temporary risk considerations such as insufficient credit track record of the borrower, nature of industry involved or fluctuations in the collateral market, among others.  
Lending Programs  

Wholesale Lending Programs:

  • SME-FAST (Funding Access for Short-term Loans) is a wholesale funding via rediscounting of SME loans of accredited financial institutions;
  • SME-FIRM (Funding for Investment in Regional Markets) is a wholesale medium-term project funding channeled through accredited financial institutions as conduits to SMEs;  
Retail Lending Programs:

  • SME-FRIEND (Financing Reach for Exporters thru Network Development) is a direct lending to exporters with Letters of Credit, who are endorsed by their industry associations;
  • SME XE "SME"-FIRST (Financing for Receivables of Suppliers’ Transactions) is a direct lending to suppliers of domestic firms with proven track record and management stability, where the object of credit is the supplier’s sales invoice for goods and/or services XE "Services" delivered;


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SME-FORCE (Financing for Organizationally Competent and Excellent Franchise Businesses is a medium-term direct lending to franchisees of home-grown franchise firms that are members of industry associations. It is intended for the start-up or expansion of franchises.




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SME-FLEXIBLE (Financing for Variable Business Expansions)is a direct lending facility for domestic enterprises to sustain, expand or improve their business operations (formerly SME GUIDE).




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SME FEASIBLE (Financing for Enterprising and Able Start-ups with Innovative Business Lines) is a direct lending facility for start-up domestic entrepreneurs.  

Microfinance Facilities:

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MICRO-LEAD (Large Micro Finance-Oriented Institutions);

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MICRO-LEAD (Medium Micro Finance-oriented Institutions);

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MICRO-LOCAL (MSME-Oriented Rural Banks);

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MICRO-LEAP (Community Cooperatives); and

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MICRO-LEAP (Lower Qualification Conduits).  

The above facilities comprise  the recently re-designed SME FEEL or microfinancing facility of SB Corp.  The redesigned facilities were differentiated based on the category/size and nature of operation of the conduit.  Here, large, focused and well-established microfinance institutions will be allowed higher loan limits, but will have to pass through more stringent eligibility criteria.

Trade and Industry Information Center (TIIC)  

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What are the information materials available in the DTI library?

DTI-Library collection consists of information materials dealing on trade; cottage, small and medium scale industry; investments; product briefs/profiles; Philippine and foreign economic and market data; business laws and product technology information.

What are the requirements for me to be able to use your library?

Anybody can use the DTI Library facility by just presenting their I.D. to the Ground Floor Security Guard as their pass.

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How much do I pay to photocopy information materials?

One has to pay P1.50 for each page photocopied.  

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Where is your library located?  How do I get there?

The DTI- Library is located at the address indicated below:

2nd Floor, Trade and Industry Building
361 Sen. Gil J. Puyat Ave., Makati City  


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Do we need to bring a letter to use your library?

There is no need to bring a letter, an identification card is enough.  

As external clients, can we borrow information materials?

Only DTI employees are allowed to borrow books or magazines. External clients, however, are only allowed to do so through a DTI employee of acquaintance with them, or through a formal inter-library arrangement with attached agencies' or other government offices' libraries.  

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What time is your library open?

The library is open from 8:00 a.m. to 5:00 p.m. (without snack or noon break).

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Can you send me through e-mail or fax the data I need or can I get it over the phone?  

E-mail or fax servicing of information is done only to clients outside Metro Manila and for a limited pages of information too (10 pages or below). Phone dictation of information is discouraged except for data which only require brief number of minutes.  

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How much do I pay for using the Internet?

Internet use is free, but the front desk officer has the discretion to control the period of use for every individual or groups user/s;  

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Can I print/copy data from the Internet?

Copying of data from the Internet is allowed only when the diskette or CD is pre-cleaned by the TIIC staff. Printing however, is not allowed at the moment.  

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Are some of your data available from the web? What is your website?

There are lots of information from the DTI website: www.business.gov.ph

 

business registrations, bookkeeping, land transfer, loan 5% interest, SEC registrations