RETAIL LENDING PROGRAM > Working Capital Financing > Medium -Term
PERMANENT WORKING CAPITAL LOANS
Amortized Term Loan for Various Working Capital Requirements
Program Description
A medium-term direct lending facility of Small Business Corporation to micro, small and medium enterprises who needed financing flexibility for their working capital and soft or intangible investment requirements.
Facilities
- Micro Working Capital Loan – a facility intended for accounts and/or inventory financing for micro and small enterprises who are not yet ready for a credit line transaction, who prefer to amortize its working capital loan and most probably, do not have a working accounting system.
- Soft Investment Loan – a facility intended to finance the soft or intangible investment requirements of the enterprise such as research and development (R& D), marketing projects including trade fair participation, pre-operating expenses for an expansion project, training, rental deposit, IT software packages, and franchise development packages among others
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 operations
- Must have a Borrower Risk Rating of “5” or better per SBC evaluation.
Product Features
Type of Facility |
Amortized Term Loan |
Purpose of Loan |
Micro Working Capital Loan
- Permanent working capital to finance the receivables and/or inventory
Soft Investment Loan
- Soft or intangible investments (i.e. R & D, trade fair participation, pre-operating expenses for expansion project, training, rental deposit, IT software packages and franchise development packages among others)
|
Loan Amount |
Loan Floor - P200,000
Micro Working Capital Loan
- Up to 70% of computed working capital requirement as assessed by SBC
- Up to P500,000 for first time SBC borrowers
- Up to P1.0 Million for existing SBC borrowers
Soft Investment Loan
- Up to 90% of the total project cost
- Up to P500,000 only
|
Repayment Term |
Up to 3 years; to be amortized monthly or quarterly
(Grace period on principal may be given only if the expansion project involves new product/service lines and/or new markets.) |
Collateral Requirement |
Must be at least 80% secured by real estate mortgage (REM) and/or chattel mortgage (CHM) on motor vehicles or heavy-duty equipment. |
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