RETAIL LENDING PROGRAM > Fixed Asset Financing
FIXED ASSET FINANCING
Amortized Term Loan for Fixed Asset Acquisition and Expansion Projects
Program Description
A medium-term direct lending facility of Small Business Corporation for domestic enterprises to sustain, expand or improve their business operations. Expansion projects may include fixed assets acquisition and construction or renovation of the project site facility.
Minimum Borrower Qualification
- Must be a Filipino-owned enterprise; in the case of corporation, must be at least 60% Filipino-owned.
- Must have an asset size of not less than P500 Thousand and not more than P100 Million, excluding the value of land.
- Must have at least one year positive business track record.
- The MSME industry involved should not be among the following exclusionary list of SBC:
- Farm-level crop or livestock production (post-harvest operations are qualified)
- Real estate development (SME contractors are qualified)
- Pure traders of imported goods
- Engaged in vice-generating operation
- Must have a Borrower Risk Rating of “5” or better per SBC evaluation
Product Features
Type of Facility |
Amortized Term Loan |
Purpose of Loan |
- Fixed asset acquisition
- Equipment or motor vehicle acquisition
- Lot acquisition (limited to 25% of total loan)
- Building construction/improvement
- Refinancing of loans used for fixed asset acquisition (except for loans from other government financial institutions)
|
Loan Amount |
- Minimum of P200,000
- Up to P10 Million for enterprises with asset size of at least P15 Million per BIR-filed FS
- Up to P5 Million for small enterprises
- Up to P1.5 Million for micro enterprises
- Up to 90% of total project cost
|
Repayment Term |
- Up to 5 years; may be up to 7 years for big projects; up to its economic life only, for equipment acquisition
- To be amortized monthly or quarterly
- Grace period of up to 1 year on principal may be given for expansion projects that involve new product/service lines and/or new markets.
|
Collateral Requirement |
Fixed assets to be financed by the loan |
For more information about our products, please contact us:
Small Business Corporation
Development Finance Group
Telephone No. 751-1888
or at any SBC office nearest you.
(Link to SBC area offices directory)
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Retail Lending Program