Bayanihan CARES– Financing assistance to help businesses restart.
The Bayanihan to Recover as One Act or Bayanihan 2 has directed SBCorp to expand its existing loan programs for MSMEs, cooperatives, hospitals, tourism, and OFWs affected by Covid-19 pandemic and by other socio-economic reversals
Loan proceeds are allowed to be utilized for: payroll cost; materials and suppliers; mortgage payments; rent; utilities, including fuel and storage; creation of new supportive businesses; re-purposing of existing business capital; any other business debt obligations that were incurred before the covered period; or acquisition of new technologies and systems to adjust business processes for resiliency.
FOR MSMES WITH BUSINESS OPERATING FOR ONE (1) YEAR
- Loans of up to PhP 5.0 million
- With grace period of up to 12 months
- No collateral required
- No interest
HOW TO APPLY
- Prepare and scan the documentary requirements
- Create an account in http://www.BayanihanCares.ph
- Fill out personal details to complete your account creation, including your correct email address
- Check your email for the system-generated email verification link, and click the Verify Email button.
- Complete the information requested in the pre-registration process
- Click the Apply for a loan button to complete your online loan application, and attach/upload the required documents
- Wait for the confirmation and update sent to your email regarding the online submission and assessment of your loan application.
SMALL BUSINESS CORPORATION
FREQUENTLY ASKED QUESTIONS
- Who is Small Business Corporation or SB Corporation?
- Government financial institution(GFI) attached to the Department of Trade and Industry
- Mandated under Republic Act No. 6977 (amended by RA 8289 and RA 9501) to engage in development initiatives in finance and business technologies for micro, small and medium enterprises (MSMEs)
- What is CARES Program?
Covid-19 Assistance to Restart Enterprises (CARES) Program is a loan program of SB Corporation for MSMEs affected by the pandemic.
- What is Bayanihan CARES?
Under Republic Act (RA) 11494-Bayanihan Act to Recover as One, SB Corporation was directed to expand its existing loan programs for MSMEs, cooperatives, hospitals, tourism and OFWs affected by the COVID-19 pandemic and by other socio-economic reversals through a combination of:
- Increasing available loanable funds
- Reducing documentary requirements
- Increasing loanable amount per borrower
- Reducing interest rates
- Extending loan terms
- Allow use of the loan proceeds for payroll cost (13th month pay)
- What are SB Corporation’s lending programs under the Bayanihan CARES?
Under the Bayanihan Cares, we have the following lending programs:
- Cares for Micro, Small and Medium Enterprises (MSMEs);
- Cares for Tourism Rehabilitation and Vitalization of Enterprises and Livelihoods or Cares for Travel
- HEROES Program or Helping the Economy Recover thru OFW Enterprise Start-Ups Program
- How much is the fund allocated by the government to SB Corporation for Bayanihan CARES?
Under RA 11494, P10.0 Billion was allotted to SB Corporation for Bayanihan Cares.
- How much is allotted to finance the CARES for Travel Program and the HEROES Program?
P6.0 Billion is allotted for CARES for Travel while P500 Million for HEROES.
- Who are eligible to borrow under the Bayanihan CARES?The borrower must:
- Be the Registered Business Owner (for Sole Proprietorships); Authorized loan applicant must be Managing Director (for Partnerships), or President/CEO (for Corporations)
- Filipino-owned, or at least majority Filipino-owned for corporations,
- Have been in operation for at least one year.Start-ups are not eligible except for OFWs under the HEROES program,
- Have no unresolved major negative credit findings on the enterprise, business owner and its Managing Director or President/CEO
- Valid e-mail address.
- For CARES for TRAVEL, with Department of Tourism (DOT) accreditation, although non-DOT accredited may also borrow under the B2C
- For HEROES, repatriated and returning OFWs
- What does MSME mean and how are they categorized or defined?
MSME stands for Micro, Small and Medium Enterprises. By law,
and they are categorized based on asset size, as follows:
Not more than P3.0 Million
Over P3.0 Million but not more than P15.0 Million
Over P15.0 Million but not more than P100.0 Million
*Excluding the value of the land
- How can an entrepreneur
toapply for a loan under the Bayanihan CARES Program?
Application is done online through the link www.bayanihancares.ph
- How much can an MSME borrow?
Maximum Loanable Amount
Micro (without BIR-filed FS)
Up to P200,000.00
Micro (with BIR-filed FS)
Up to P600,000.00
Small (with BIR-filed FS)
Up to P3.0 Million(1)
Medium (with BIR-filed FS)
Up to P5.0 Million(2)
- Subject to CreCom approval but not to exceed 15% of Sales and 20% 0f Asset size, whichever is lower
- Subject to Board notation, but not to exceed 15% of Sales and 20% of Asset size, whichever is lower
- Under the HEROES Program, how much can an OFW borrow? How does an OFW qualify for a loan?
OFWs who meet the following qualifications can borrow P50,000.00:
- Have completed the two-day online training conducted by PTTC or the Coca Cola sponsored training for OFWs under the OFW RISE,
- Have a
sbusiness pitch or via short video, and
An OFW may be granted a higher amount of up to P100,000.00, subject to the approval of the Credit Committee.
- If the program offers higher loan amount, why did wereceivelow loan? How is the loanable amount computed?
- If the applicant submitted BIR-filed financial statements for 2018 and 2019, the loanable amount is computed as follows:15% of Sales or 20% of Total Assets or the applied loan amount, whichever is lower.
- If the applicant has no BIR-filed financial statements, the loanable amount is computed at 20% of the estimated value of the assets (inventory, machinery and equipment) shown in the submitted photos and video.
- How much is the interest rate?
Loans under the Bayanihan
2 Cares Program is zero interest.
- Is there a collateral requirement?
Loans under the Bayanihan CARES do not require any collateral.
- Are there other fees and charges imposed on the loan?
- Only a one-time service fee is charged, depending on the term of the loan.
- Documentary Stamp tax (DST)
- How do I pay for the service fee and DST?
The service fee and DST are deducted from the loan proceeds.
- What is the term of the loan?
For MSMEs, the maximum term is four (4) years, while for HEROES, it’s three (3) years.
- Is there a grace period?
For MSMEs, the grace period range
s from three (3) to 12 months depending on the term of the loan. For HEROES, it is up to 12 months.
- What is the mode of payment?
The loan is amortized monthly.
- Do you require the issuance of post-dated checks?
If the loan amount is more than P150,000.00, we require any of the following:
- Guaranty check covering the full amount and dated on the first amortization due date
- Complete set of post-dated checks covering the number of months in the amortization schedule.
- What are the basic documentary requirements?
- BIR-filed Financial Statements for 2018 or 2019
- Government-issued ID
- Proof of Bank account or Electronic Money Account
- Secretary’s Certificate (for partnership and corporation)
- If I do not have BIR-filed Financial Statements, what do Ineed to submit?
- Barangay Business Permit for 2019 and 2020 (for loans of not more than P50,000,00);
- Mayor’s Permit for 2019 and 2020 (for loans beyond P50,000.00);
- Photos of business signage, inventories and fixed assets
- One (1)- minute video describing the business, products and services, buyers, suppliers, monthly sales and number of employees*
- Proof of sales (official receiptsand sales orders or consummated purchase orders in 2018 or 2019 covering at least the 4th quarter of the year)if the amount to be borrowed is more than P100,000.00;
- Government-issued ID;
- Proof of Bank account or Electronic Money Account (EMA)
- Secretary’s Certificate (for partnership and corporation)
- : For photos and video, the borrower needs to show proof that these were captured/recorded within one (1) week of the application date; applicant holding the newspaper of the day showing the date, web/screen capture of official government websites showing the date and time stamps.
- What is a Secretary’s Certificate and why is it required?
A Secretary’s Certificate is a document issued by a Corporate Secretary to certify corporate accounts or records. It is needed to show the authority of a person who will enter into transactions, on behalf of a partnership and/or corporation. It is required to:
- Authorize the partnership or the corporation to secure a loan from SB Corporation
- the General Manager/Managing Director (for partnership) and the President/CEO (for corporation) as the authorized signatory for the loan.
- How do I submit the documentary requirements?
All documentary requirements must be submitted using the borrower portal www.bayanihancares.ph
- Can a senior citizen above 65 years borrow under the program?
Yes, he can borrow but she/he needs a co-borrower.
- Who is eligible to be a co-borrower and what does she/he need to submit?
- The co-borrower can be a relative of the borrower (son, daughter, sibling), of legal age, but younger than the borrower and with source of income;
- He/she needs to submit a government-issued ID.
- How long is the processing time?
The processing time depends on the completeness and correctness of the submitted documents and the volume of applications being processed. It usually takes from two weeks to one month and follows the steps below:
For Regular Business
- Step 1.Checking of credit standing – This step is taken to check if the applicant has
anunsettled obligations with other financial institutions.
- Step 2. Validation of data/submitted documents – This is to check the correctness of the data/information contained in the application vis-à-vis the submitted documents.
- Step 3.Financial performance assessment or loan evaluation – This is to review the operations and determine if the business can survive given the amount applied for.
- Step 4.Approval or denial
- Step 1. hecking of credit standing
- Step 2. Financial performance assessment or loan evaluation (including the validation of BIR-filed financial statements, bank account details and business permits)
- How will I know if I passed every step stated above?
- You will be notified through an automated e-mail on the results of the checking/validation and evaluation.
- If you pass the credit checking, the next step is the validation of the documents you submitted.
- On the other hand, if you have negative findings, you will be advised to submit either the proof of payment/settlement agreement or an affidavit of denial.
- Under Step 2, if the applicant needs to correct any data/information on his application or has lacking requirements, he/she will receive an e-mail notification about it; If the applicant passed Step 2, his/her application will proceed to the financial performance assessment process
teamfor loan evaluation and approval.
- When I receive
dan e-mail notification on the data/information for correction or lacking requirements to be submitted, where and how do I submit them?
- Follow the instructions stated on the e-mail you received.
- Log-in to your BRS account using your verified email address and password.
- Correct the data/information that needs to be
editedchanged and upload the required documents.
- Can I just submit the required documents through e-mail or snail mail?
- No, you need to upload the documents in the borrowers system www.bayanihancares.ph
- The BIR-filed financial statements have several pages. How do I upload all of them to the system?
- Scan all the pages of the BIR-filed financial statements specifically the BIR form 1701/1702, balance sheet and income statement;
- Save the scanned copy in one pdf file;
- Upload the pdf file inthe system.
- How will I know the status of my application?
- Log-in to your BRS account using the verified e-mail address and password to check the status of your application in the dashboard,
- Send an email to firstname.lastname@example.org to follow-up, or
- Call the hotline 8651-3333 (NCR); 1 800 10651 3333 (Nationwide).
- How will I know if my application is approved or denied?
You will receive an e-mail notification regarding the approval or denial of your application.
- If my application is approved, what will be the next step and when will the loan be released?
- Once approved, the loan documents are prepared
- Once available, a field staff will coordinate with the borrower regarding the date of signing;
- After signing of the loan documents, the borrower shall be advised on the release date.This is usually within three (3) to five (5) days from date of signing
- How is the loan released to the borrower?
The loan is released through the provided bank or electronic money account (EMA) of the borrower, which may be through:
- Fund transfer to borrower’s account with the Land Bank of the Philippines (LBP) or
- Credited to the borrower’s Instapay or Pesonet account.
- Can I apply for an additional loan?How?
Yes, if the initial loan amount released does not exceed the maximum cap on loans, i.e., 15% of sales and 20% of asset size based on submitted BIR-filed FS.
- A borrower
swhose loan has already been released can apply for an additional loan by logging into the loan application systemusing their verified e-mail and password and apply for a new loan.
- Loan request will be subject to evaluation and approval.
- Can the grace period be extended if the borrower cannot yet pay the amortization due?
A borrower can request for an extension of the grace period, subject to Credit Committee approval.
- Where can I pay the monthly amortization?
You can pay your monthly amortization through any of the following:
- Bank Payment
Land Bank of the Philippines (LBP) On-Line Collection (LBP-ON COLL)
Account Name: SBGFC
Account Number: 1792-2220-28
- On-Line Payment
Visit www.landbank,com and click LANBBANK Liz.Biz.Portal
- Payment Centers
- Any Bayad Center Outlet
- Any Palawan Pawnshop (excluding Palawan Express Pera Padala Partners/Authorized Agent)
- Can existing SBCorp borrowers apply under the Bayanihan CARES? How much can they borrow? What are the requirements they need to submit?
Existing borrowers (Regular Retail, ERF Retail and P3 Retail) can still borrow under the Bayanihan CARES.