Agency Performance

                                             SMALL BUSINESS CORPORATION

Report of Accomplishments

2017

 

The year 2017 heralds a new and unpaved direction for Small Business Corporation as it took on a more serious developmental role as it shifts its strategic focus to better address the needs of the microenterprises burdened by  high cost of financing. The year was a flurry of activities focused in the urgent implementation of the Administration’s Pondo sa Pagbabago at Pag-asenso (P3).

People and resources were mobilized to fast-track processing of loan transactions of borrowers under the P3. In 2017 SB Corp has approved a total of P 1.2 billion in credit line and released P784 M to 20,104 micro enterprises under P3.

 

I. Lending Portfolio

Small Business Corporation (SB Corp) registered a total loan portfolio of P2.94 billion in all its programs to micro, small and medium enterprises as of end-2017.

SB Corp released loans to 2,112 MSME borrowers, 65% of which are MSME borrowers in the regular retail program.

Under the wholesale lending program, 154 financial institutions have become active partners of SB Corp, 60% of which are conduits for P3, 35% are regular microfinance partners and 5%  are partners in its regular wholesale program.

 

Table 1. Earning Portfolio and number of borrowers

 

LENDING PROGRAM	PORTFOLIO O/B1	No.of  Borrowers or Conduits
Regular Retail	998,421,238	1,388
ERF Retail	261,085,575	452
P3 Regular Retail	9,561,854	286
TOTAL RETAIL PROGRAM	1,269,068,667	2,112
Regular SME Wholesale	132,828,287	5
Regular Micro Wholesale	807,281,733	48
Grad Micro	28,950,672	6
P3 Regular Micro Wholesale	703,967,933	98
TOTAL WHOLESALE LENDING	1,673,028,624	154
TOTAL            LENDING PORTFOLIO	2,942,097,291	2,266

¹Earning Portfolio = Classified as Current and Restructured Current

 

 

 

 

Per region loan portfolios show that Mindanao Lending Group has the biggest share of the portfolio in regular retail lending. Its retail lending portfolio makes up almost 60% of its whole portfolio for 2017. Southern Luzon Lending Group has bulk of the regular micro wholesale with a total portfolio of P 443,805,448. P3 portfolio on the other hand is almost at the same level in the Southern Luzon, Visayas and Mindanao Lending Groups averaging at P 183,206,863.

 

Visayas has the most number of MSME borrowers totaling to 656 where 66% or 433 are ERF borrowers while South Luzon has the most number (49 MFIs) of active MFI partners.

 

II. Branching and Manning

 

Supporting the Corporations 2017 portfolio generation is total of 122 personnel. Of this total 26 or 21% are account generation account officers, 25 (20%) are Desk officers  and 58 or 47% are business support.

 

On the per regional lending group tally, Southern Luzon has 38 or 31% of the total manpower for operation followed by the Visayas Group with 30 (24%). Southern Luzon and Mindanao has the most account generation account officers with seven (7) each.

 

SB Corp operates through 5 area offices (South Luzon, Central Luzon, North Luzon, Visayas and Mindanao) and 21 desk offices strategically located in major business hubs in the country (Isabela, Pangasinan,Cagayan,  Batangas, Camarines Sur, Occidental Mindoro, Quezon, Palawan, Albay,  Iloilo, Tacloban, Bacolod, Bantayan, Misamis Oriental, Zamboanga City, Lanao del Sur, Davao del Norte, Sarangani South Cotabato,North Cotabato, Agusan del Norte).

 

III.  P3 Program Year-end Report

 

A total of PhP1.2 Billion in credit lines was granted to P3 conduits. PhP785 million, equivalent to 93% of the PhP841 loanable fund, has been downloaded to conduits. About fifty-five (55%) of the amount released to conduits has already been downloaded to P3 beneficiaries of over 20,000 micro-enterprises all over the country as of December 31, 2017. (see Annex A for the complete P3 Program  Year-end report)

     Table 11. P3 Program Year-end Report (Cumulative Monthly)

IV. Status of Implementation P3 for Marawi

P3 also allowed timely intervention in efforts to rehabilitate MSMEs in Marawi.  The program is now poised to immediately provide financing in public markets as soon as these markets are re-opened.   In the meantime, 37 beneficiaries identified through DTIs “starter kit” distribution operations have also been assisted by P3 as of December with total loans of P375,000.00.

Table 12. Status of Implementation of P3 for Marawi

	Program Briefing for DTI-Starter Kit Beneficiaries	Program Briefing for DTI-Starter Kit Beneficiaries	Flyering within Marawi	Program Briefing for Marawi City Market Vendors	TOTAL
Date	Dec.5-7,2017	Jan. 23,2018	Ja.24,2018	Jan.25,2018
Venue	DTI-Iligan Office	DTI-Iligan Office	Marawi City	Marawi City
Number of Invitees	100	70		200
Number of Attendees	65	43		95
Number of Loan Applicants	65	43		94
Loan Implemented Loan Approval/ Release Number of Beneficiaries	375,000.00   37	-   -			375,000.00   37
Pending Loans for Processing Loan Amount Number of Beneficiaries	125,000.00 12	465,000.00 43		1,410,000.00 94	Target Release is February 1, 2018   2.0M 149
Pending Loans still for DTI Verification	16

 

 

V. Status of Implementation of P3 for Soldiers Killed in Action (KIA) and Wounded in Action (WIA)

 

Interviews with  WIA soldiers were conducted on   December 29,  2017, January 10 & 11, 2018 in V. Luna General Hospital. On Dec. 29, 2017,  only 6 WIA soldiers were interviewed since the soldiers were generally on “vacation therapy”, while 22 soldiers were interviewed from January 10 to 11, 2018. To date, there are 28 soldiers interviewed  out of the 111 WIA soldiers  per list provided by the AFP thru the Office of  ASEC Ameenah Fajardo.

 

Five  out of the 6 WIA soldiers interviewed on Dec, 29, 2017 and 1 beneficiary of 1 KIA soldier contacted through phone signified their intentions to apply for the program. On January 9, 2018,  investment applications amounting to P326,000  from said soldiers was approved by the P3 Credit Committee, as follows:

 

Table 13. Status of Implementation of P3 for Soldiers Killed in Action (KIA) and Wounded in Action (WIA)

Investee	Address	Amount	Business
1.     Ariola, Arnel-WIA	Baesa, Caloocan City	P45,000	Meat Vending-Existing
2.     Amisola, Jaffee-WIA	Calamba, Laguna	P56,000	Hog Raising-Existing
3.     Agraviador, Erlindo-WIA	Zamboanga Sibugay	P50,000	Hog Raising-Existing
4.     Agusen, Julius-WIA	Kapalong, Davao del Norte	P60,000	Groceries-Start-up
5.     Sawadjaan, Nixon-WIA	Jolo, Sulu	P65,000	Retail Store (Rice/ Coconut)-Start-up
6.     Cardona, Benilda- Mother of Cardona, Eddie Jr.	Santiago, Pangasinan	P50,000	Retail Store (Feeds/ Fishing Supplies)-Start-up

 

VII. Credit Guarantees

 

Table 14. Credit Guarantees for 2017

	Target	Actual	2018 Target
MSME loan portfolio of banks supported by SB Corp credit guarantee	1.0 Billion	1.129 Billion*	1.6 Billion
No. of Active FIs under guarantee program	18	19	29
Number of  SMEs guaranteed	300 MSMEs	14,784 MSMEs

*Enrolled Accounts                                                             **Number of FIs

 Portfolio Guarantee                        438,110,980                                    5

 Regular Guarantee                        19,000,000                                    3

 CRGF                                                672,325,940                                      11

 

 

 

 

 

 

 

 

 

VIII. Capacity Building Programs

Capacity Building Program	Target	Actual	Cumulative Total (as of 2017)	Target for 2018
Enterprise Enhancement Program (EEPro)	38	44	77	25
Risk Based Lending for RBs program	15	15	155	50
MSME Loan Officer Certification	50	50	50	50
CRGF Project	0	52

 

The Corporation has capacitated a total of 15  rural banks on the use of Risk-based lending technology in 2017 and trained 44 enterprise owners under it’s Enterprise Enhancement Program (EEPro). This makes the total number of rural banks trained in Risk-based lending to 77  and the enterprise trained under  EEPro  to 155 as of 2017.

As a new addition to its capacity building programs, SB Corp. piloted its first module of MSME Loan Officers certification course among 50 loan officers. These loan officers enrolled in the SME Business Specialist Certification Module came from both from private banks and SB Corp. This certification module is part of a four-level “ladderized” certification program. Other modules include: SME Credit Analyst, SME Credit Officer and SME Lending Strategist.

 

 

 

IX. Ratings and Recognitions

ISO Certification

 

Re-affirming its commitment to provide quality and relevant programs and services, Small Business Corporation has successfully obtained and maintained its ISO 9001:2008 certification from TÜV Rheinland.

ISO 9001:2008 defines the benchmark for a quality management system (QMS) that provides a blue print for good governance of an organization strongly focusing on public sector performance in satisfying the needs, expectations and requirements of its frontline services through the effective application of the system, including processes for continual improvement.

The SB Corp ISO 9001:2008 certification covers frontline services, particularly its lending, capacity building for MSMEs and financial institutions, equity financing and credit guarantee.

The certification is valid for three years, from December 7, 2015 until September 14, 2018.

Credit Rating

 

SB Corp maintained its  issuer rating of PRS Aa minus (corp.) from Philippine Rating Services Corporation (PhilRatings).

 A company rated PRS Aa minus (corp.) differs from the highest rated corporations only to a small degree, and has a strong capacity to meet its financial commitments relative to that of other Philippine corporates. A minus sign is included to further qualify the rating.

 The rating assigned primarily considered the government’s supportive regulatory framework for growth and development of the MSME sector, as well as SB Corp’s sustained positive performance in terms of profitability.