RETAIL LENDING PROGRAM > Financing for Start-Up Enterprise
FINANCING FOR START-UP ENTERPRISES
Amortized Term Loan for Start-Up Domestic Entrepreneurs
Program Description
A medium-term direct lending facility of Small Business Corporation for start-up domestic entrepreneurs whose product or service prototype has already been produced and market-tested. This facility also caters to start-up franchisees.
Minimum Borrower Qualification
- Must be a Filipino-owned enterprise; in the case of corporation, must be at least 60% Filipino-owned.
- Should have an asset size of not less than P500 Thousand and not more than P100 Million, excluding the value of land.
- Must be willing and able to finance at least 50% of the cost of the start-up project.
- 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 operations
- For non-franchisee,
- the product or service prototype must have been produced and market-tested; and
- must have a business plan, which the borrower should be able to expound on and to defend.
- For franchisee,
- the franchise concept may either be homegrown or international; and
- the franchisor firm must be a member in good standing of the Association of Filipino Franchisors, Inc. (AFFI) or the Philippine Franchise Association (PFA).
Product Features
Type of Facility |
Amortized Term Loan |
Purpose of Loan |
SBC may finance any of the following components of the start-up project:
- Fixed asset acquisition
- Equipment or motor vehicle acquisition
- Lot acquisition (limited to 25% of total loan)
- Building construction/improvement
- Working capital for initial inventory and/or other pre-operating costs
|
Loan Amount |
- Minimum of P200,000
- Up to 50% of total project cost
- Up to P3.0 Million for franchisees; up to P1.5 Million for non-franchisees
|
Repayment Term |
- Up to 5 years; to be amortized monthly or quarterly
- Grace period on principal of up to 6 months may be provided
|
Collateral Requirement |
- Must be fully secured by REM and/or CHM on motor vehicle; fixed assets to be financed by the loan shall form part of collateral
- In case of start-up franchisees, corporate guarantee of franchisor may form part of collateral up to 50%
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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