SMALL BUSINESS CORPORATION

Report of Accomplishments

2017

 

The year 2017 heralds a new and unpaved direction for Small Business Corporation as it took on a more serious developmental role as it shifts its strategic focus to better address the needs of the microenterprises burdened by  high cost of financing. The year was a flurry of activities focused in the urgent implementation of the Administration’s Pondo sa Pagbabago at Pag-asenso (P3).

People and resources were mobilized to fast-track processing of loan transactions of borrowers under the P3. In 2017 SB Corp has approved a total of P 1.2 billion in credit line and released P784 M to 20,104 micro enterprises under P3.

 

I. Lending Portfolio

Small Business Corporation (SB Corp) registered a total loan portfolio of P2.94 billion in all its programs to micro, small and medium enterprises as of end-2017.

SB Corp released loans to 2,112 MSME borrowers, 65% of which are MSME borrowers in the regular retail program.

Under the wholesale lending program, 154 financial institutions have become active partners of SB Corp, 60% of which are conduits for P3, 35% are regular microfinance partners and 5%  are partners in its regular wholesale program.

 

Table 1. Earning Portfolio and number of borrowers

 

LENDING PROGRAM

PORTFOLIO O/B1

No.of  Borrowers or Conduits

Regular Retail

998,421,238

 

1,388

 

ERF Retail

261,085,575

 

452

 

P3 Regular Retail

9,561,854

 

286

 

TOTAL

RETAIL PROGRAM

1,269,068,667

 

2,112

 

 

 

 

Regular SME Wholesale

132,828,287

 

5

 

Regular Micro Wholesale

807,281,733

 

48

 

Grad Micro

 

28,950,672

 

6

 

P3 Regular Micro Wholesale

703,967,933

 

98

 

TOTAL

WHOLESALE LENDING

1,673,028,624

 

154

 

TOTAL           

LENDING PORTFOLIO

 2,942,097,291

 

2,266

 

1Earning Portfolio = Classified as Current and Restructured Current

 

 

 

 

Per region loan portfolios show that Mindanao Lending Group has the biggest share of the portfolio in regular retail lending. Its retail lending portfolio makes up almost 60% of its whole portfolio for 2017. Southern Luzon Lending Group has bulk of the regular micro wholesale with a total portfolio of P 443,805,448. P3 portfolio on the other hand is almost at the same level in the Southern Luzon, Visayas and Mindanao Lending Groups averaging at P 183,206,863.

 

Visayas has the most number of MSME borrowers totaling to 656 where 66% or 433 are ERF borrowers while South Luzon has the most number (49 MFIs) of active MFI partners.

 

II. Branching and Manning

 

Supporting the Corporations 2017 portfolio generation is total of 122 personnel. Of this total 26 or 21% are account generation account officers, 25 (20%) are Desk officers  and 58 or 47% are business support.

 

On the per regional lending group tally, Southern Luzon has 38 or 31% of the total manpower for operation followed by the Visayas Group with 30 (24%). Southern Luzon and Mindanao has the most account generation account officers with seven (7) each.

 

SB Corp operates through 5 area offices (South Luzon, Central Luzon, North Luzon, Visayas and Mindanao) and 21 desk offices strategically located in major business hubs in the country (Isabela, Pangasinan,Cagayan,  Batangas, Camarines Sur, Occidental Mindoro, Quezon, Palawan, Albay,  Iloilo, Tacloban, Bacolod, Bantayan, Misamis Oriental, Zamboanga City, Lanao del Sur, Davao del Norte, Sarangani South Cotabato,North Cotabato, Agusan del Norte).

 

III.  P3 Program Year-end Report

 

A total of PhP1.2 Billion in credit lines was granted to P3 conduits. PhP785 million, equivalent to 93% of the PhP841 loanable fund, has been downloaded to conduits. About fifty-five (55%) of the amount released to conduits has already been downloaded to P3 beneficiaries of over 20,000 micro-enterprises all over the country as of December 31, 2017. (see Annex A for the complete P3 Program  Year-end report)

     Table 11. P3 Program Year-end Report (Cumulative Monthly)

Month

Approved Credit Line

Released to Conduits

Released to P3 Micro-borrowers**

Unique No. of Micro-borrowers**

May

358,000,000

102,449,000

15,846,000

299

Jun

435,000,000

121,949,000

18,846,000

348

Jul

468,500,000

255,699,000

28,498,000

587

Aug

532,500,000

282,795,000

116,499,800

8,750

Sep

532,500,000

332,995,491

153,633,007

10,124

Oct

851,500,000

380,279,778

240,430,894

13,605

Nov

895,700,000

490,193,778

282,136,530

14,841

Dec

1,202,200,000

784,918,254

426,157,197

20,104

Grand Total

1,202,200,000

784,918,254

426,157,197

20,104

**Cumulative release micro-borrowers and the unique number of micro-borrowers still not complete because of the lag time in the liquidation of conduits.

IV. Status of Implementation P3 for Marawi

P3 also allowed timely intervention in efforts to rehabilitate MSMEs in Marawi.  The program is now poised to immediately provide financing in public markets as soon as these markets are re-opened.   In the meantime, 37 beneficiaries identified through DTIs “starter kit” distribution operations have also been assisted by P3 as of December with total loans of P375,000.00.

Table 12. Status of Implementation of P3 for Marawi

 

Program Briefing for DTI-Starter Kit Beneficiaries

Program Briefing for DTI-Starter Kit Beneficiaries

Flyering within Marawi

Program Briefing for Marawi City Market Vendors

TOTAL

Date

Dec.5-7,2017

Jan. 23,2018

Ja.24,2018

Jan.25,2018

 

Venue

DTI-Iligan Office

DTI-Iligan Office

Marawi City

Marawi City

 

Number of Invitees

100

70

 

200

 

Number of Attendees

65

43

 

95

 

Number of Loan Applicants

65

43

 

94

 

Loan Implemented

Loan Approval/ Release

Number of Beneficiaries

 

375,000.00

 

37

 

-

 

-

 

 

 

 

 

375,000.00

 

37

Pending Loans for Processing

Loan Amount

Number of Beneficiaries

 

 

125,000.00

12

 

 

465,000.00

43

 

 

 

1,410,000.00

94

Target Release is February 1, 2018

 

2.0M

149

Pending Loans still for DTI Verification

16

 

 

 

 

 

 

V. Status of Implementation of P3 for Soldiers Killed in Action (KIA) and Wounded in Action (WIA)

 

Interviews with  WIA soldiers were conducted on   December 29,  2017, January 10 & 11, 2018 in V. Luna General Hospital. On Dec. 29, 2017,  only 6 WIA soldiers were interviewed since the soldiers were generally on “vacation therapy”, while 22 soldiers were interviewed from January 10 to 11, 2018. To date, there are 28 soldiers interviewed  out of the 111 WIA soldiers  per list provided by the AFP thru the Office of  ASEC Ameenah Fajardo.

 

Five  out of the 6 WIA soldiers interviewed on Dec, 29, 2017 and 1 beneficiary of 1 KIA soldier contacted through phone signified their intentions to apply for the program. On January 9, 2018,  investment applications amounting to P326,000  from said soldiers was approved by the P3 Credit Committee, as follows:

 

Table 13. Status of Implementation of P3 for Soldiers Killed in Action (KIA) and Wounded in Action (WIA)

Investee

Address

Amount

Business

1.     Ariola, Arnel-WIA

Baesa, Caloocan City

P45,000

Meat Vending-Existing

2.     Amisola, Jaffee-WIA

Calamba, Laguna

P56,000

Hog Raising-Existing

3.     Agraviador, Erlindo-WIA

 

Zamboanga Sibugay

 

P50,000

 

Hog Raising-Existing

4.     Agusen, Julius-WIA

Kapalong, Davao del Norte

 

P60,000

Groceries-Start-up

5.     Sawadjaan, Nixon-WIA

Jolo, Sulu

 

P65,000

Retail Store (Rice/ Coconut)-Start-up

6.     Cardona, Benilda- Mother of Cardona, Eddie Jr.

Santiago, Pangasinan

 

P50,000

Retail Store (Feeds/ Fishing Supplies)-Start-up

 

VII. Credit Guarantees

 

Table 14. Credit Guarantees for 2017

           

Target

Actual

2018 Target

MSME loan portfolio of banks supported by SB Corp credit guarantee

1.0 Billion

1.129 Billion*

1.6 Billion

No. of Active FIs under guarantee program

18

19

29

Number of  SMEs guaranteed

300 MSMEs

14,784 MSMEs

 

*Enrolled Accounts                                                             **Number of FIs

 Portfolio Guarantee                        438,110,980                                    5

 Regular Guarantee                        19,000,000                                    3

 CRGF                                                672,325,940                                      11

 

 

 

 

 

 

 

 

 

VIII. Capacity Building Programs

Capacity Building Program

Target

Actual

Cumulative Total

(as of 2017)

Target for 2018

Enterprise Enhancement Program (EEPro)

38

44

77

25

Risk Based Lending for RBs program

15

15

155

50

MSME Loan Officer Certification

50

50

50

50

CRGF Project

0

52

 

 

 

The Corporation has capacitated a total of 15  rural banks on the use of Risk-based lending technology in 2017 and trained 44 enterprise owners under it’s Enterprise Enhancement Program (EEPro). This makes the total number of rural banks trained in Risk-based lending to 77  and the enterprise trained under  EEPro  to 155 as of 2017.

As a new addition to its capacity building programs, SB Corp. piloted its first module of MSME Loan Officers certification course among 50 loan officers. These loan officers enrolled in the SME Business Specialist Certification Module came from both from private banks and SB Corp. This certification module is part of a four-level “ladderized” certification program. Other modules include: SME Credit Analyst, SME Credit Officer and SME Lending Strategist.

 

 

 

IX. Ratings and Recognitions

ISO Certification

 

Re-affirming its commitment to provide quality and relevant programs and services, Small Business Corporation has successfully obtained and maintained its ISO 9001:2008 certification from TÜV Rheinland.

ISO 9001:2008 defines the benchmark for a quality management system (QMS) that provides a blue print for good governance of an organization strongly focusing on public sector performance in satisfying the needs, expectations and requirements of its frontline services through the effective application of the system, including processes for continual improvement.

The SB Corp ISO 9001:2008 certification covers frontline services, particularly its lending, capacity building for MSMEs and financial institutions, equity financing and credit guarantee.

The certification is valid for three years, from December 7, 2015 until September 14, 2018.

Credit Rating

 

SB Corp maintained its  issuer rating of PRS Aa minus (corp.) from Philippine Rating Services Corporation (PhilRatings).

 A company rated PRS Aa minus (corp.) differs from the highest rated corporations only to a small degree, and has a strong capacity to meet its financial commitments relative to that of other Philippine corporates. A minus sign is included to further qualify the rating.

 The rating assigned primarily considered the government’s supportive regulatory framework for growth and development of the MSME sector, as well as SB Corp’s sustained positive performance in terms of profitability.