| RETAIL LENDING PROGRAM > SME FLEXIBLE
SME-FLEXIBLE
Financing for Variable Business Expansions
Program Description
A medium-term loan facility of Small Business Corporation for MSME’s expansion projects in terms of additional capitalization and production or service facilities in order to sustain, expand or improve their business operations.
| Type of Facility |
- Term Loan
- Transactional or One-year Credit Line
|
| Loan Amount |
- Minimum of P200,000
- Maximum of P10 Million
- Must not exceed:
- 70% of the project cost
- 2X of networth of the borrower
- 5X of net income of borrower, based on in- house FS
- 20X BIR-filed net income
|
| Purpose of Loan |
- Fixed Asset Acquisition
- Building construction/improvement
- Equipment/vehicle acquisition
- Lot acquisition (limited to 25% of total loan)
- Working Capital
- Loan refinancing (except for loans from other government financial institutions)
|
| Repayment Term |
- Term Loan - maximum of 5 years, with up to one year grace period
- Transactional or One-year Credit Line – up to 180 days term per drawdown
- To be amortized monthly or quarterly
|
| Collateral Cover |
- Real Estate Mortgage or Chattel Mortgage on motor vehicle
- Fixed assets to be financed by the loan
- Working capital loans must be at least 80% secured
|
- Minimum Borrower Qualifications
- Filipino-owned enterprise; in the case of corporation, must be at least
60% Filipino-owned
- Asset size not less than P500 Thousand and not more than P100 Million (excluding the value of land)
- At least one year in operation
- Positive income for the past immediate year with BIR-filed net income of not less than P10,000
- Project to be financed not into farm-level agri-aqua production, extractive activities or vice-generating operations
- Latest financial ratios (based on in-house financials)
- At least 1.2 current ratio
- At most 70:30 debt-equity ratio
- Endorsement Requirement (any one)
- DTI Provincial Office
- SBC accredited industry association
No need for endorsement for MSMEs based in NCR, CALABAR provinces, Bulacan, Davao and CebuCity
Documentary Requirements
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Retail Lending Program