| WHOLESALE LENDING PROGRAM > SME FAST
1.0 Define SME FAST Facility (Funding Access for Short-term Loans)
SME FAST is a rediscounting window of SME promissory notes funded by eligible financial institutions (banks and non-bank financial institutions) for additional liquidity to continue their cycle of SME on-lending.
It is a direct financial intervention to banks and NBFIs that are into SME lending, and impacts SMEs by ensuring liquidity in the local financial system for SME credit, granting banks better cost efficiency, and opening up more SME credit opportunities.
SME FAST loans are wholesale short-term loans. The credit facility’s recourse is with the bank/ NBFI and the SME is the sub-borrower.
2.0 Mode of access
| 1. Individual rediscounting |
2. Portfolio rediscounting |
3. Advance drawdown |
| Based on one-on-one match of SB PN and SME promissory note and with fixed interest rate |
Requires a batch of SME PNs based on specific maturity dates (180, 270 or 360 days only), and with fixed interest rate for the rediscounting term |
Advance drawdown to be liquidated with SME promissory notes within prescribed liquidation period, and is equal to a maximum of 50% of Omnibus Credit Line
Open to eligible financial institutions under SBC lending policies
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Please click on and browse, “SB lending policies/ Circulars”
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3.0 Facility requirement for banks
A bank should be first accredited with SBGFC and granted an Omnibus Credit Line (OCL) which must be current at the time of rediscounting.
For further information on how to apply for accreditation, please click on and browse “bank accreditation” link
4.0 Facility’s eligibility requirements for sub-borrowers
Must not be a branch/ division or subsidiary of a large enterprise (with assets of more than P 100 million)
The loan should be an existing account with the conduit bank, and with no restructuring done prior to funding by SBC
With at least 70 days in remaining term of SME promissory note upon rediscounting
Must not be a DOSRI account
5.0 Terms and conditions of rediscounting
Maximum funding shall be up to 90% of loan amount, except for selected banks which avail on 100%; in peso value, the SBC funding shall not exceed P 15 million
Minimum amount of loans batched for rediscounting is P 500 thousand
Loans for rediscounting may have a maturity of more than one year but SBC funding shall not exceed 360 days
Rediscounting for the same promissory note may be availed for any number of times within the life of SME borrower’s credit line with the financial institution
6.0 Acceptable collateral
From the SME sub-borrower
Real estate mortgage with at least 50% loan value relative to loan amount
Unencumbered/ hold-out deposits equal to loan amount (SB Circular 169, Series of 2004)
Machinery and equipment used in production (for commercial banks and SBC’s Platinum accredited banks, and all other banks with CAMELS Rating of “3.5” as of latest BSP bank examination) (SB Circular 179/179-B as amended)
Tax declarations but loan valuation of not more than 40% or P 500,000, whichever is lower (SB Circular 179/179-B as amended)
From the bank
Deed of Assignment with Recourse on all rights, interests and/ or titles over the rediscounted notes
Deed of Undertaking with Custodianship, if applicable to ensure that the conduit bank has control of the original collateral documents
7.0 Availment stage
If the conduit bank is ready to avail, please contact Vice President Hector M. Olmedillo of Luzon- Institutional Markets Finance Group or Hermi Pormento, Department Manager at 751-1888 local 1732.
For Visayas and Mindanao Operations Managers
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Wholesale Lending for SMEs