NATIONAL GOVERNMENT FUNDED
(P3) LENDING PROGRAMS
- Designed to be lent out to micro enterprises borrowers with asset size not exceeding P3.0M at not more than 2.5% per month all-in interest rate and service charges. This 2.5% monthly cap is an effective rate, based on diminishing balance of the principal portion of theloan.
A. P3 RETAIL – REGULAR
- Any self-employed or micro entrepreneur engaged in legitimate livelihood or business activity for at least one year can borrow fromP3
- The micro entrepreneur should have a government-issued ID
- The micro entrepreneur should have been issued a Barangay Clearance in the past 3months
- Evidence of micro enterprise activity for at least one year (certification by LGU and/or other government offices is acceptable amongothers
- Proof of one (1) yearresidence
- Loan Amount: P5,000.00 to P200,000.00 depending on the size of the business and the ability to pay. For enterprises with at least one (1) employee, beneficiary can borrow up to P200,000.00. The fund should be used for the enterprise’s expansion and/or additional supplies of the business.
- Interest Rate: not more than 2.5% per month
B. P3 RETAIL – SPECIAL FACILITIES (KIA/WIA, MARAWI, BORACAY, OMPONG, REBEL RETURNEES)
*Special considerations are being applied for P3 Implementation of Special Facilities
EQUITY INVESTMENT FOR FAMILIES OF KIA/WIA WITH MICRO ENTERPRISE
- Providing micro enterprise investments for families of KIA/WIAs from P50T to P100T. The investment is interest free if paid within two years. If not, amortization will start on the third year with an interest of 2% perannum.
Qualifications of Micro Enterprise Investee:
- May be start-ups as DTI will support the KIA/WIA family with trainings and starter-kits.
- With AFP certification on KIA/WIA status of thesoldier
*All the KIA/WIA investees will be required to accomplish and submit on monthly basis a simple monitoring template on the progress of their business; they will be taught by SB Corp on how to accomplish the form.
- Loan Limit: Up toP100.0T
- Repayment: Being an equity investment, the KIA/WIA family-micro enterprise willreturnthefundinvestedbySBCorponcegrowthisachievedenoughtostart an amortization of the fund. The investment shall be interest free if returned within two years; otherwise a 2% p.a. fee is to be charged on theinvestment.
C. P3 WHOLESALE
- Partner AccreditationCriteria
- Should have license to engage in lending
- At least 1 year operating as anMFI
- Minimum Capitalization: At leastP500T
- Asset size Limit: Up toP5.0B
- Net Income is positive for the past 12months
- Microfinance Portfolio at Risk: PAR – 30 days should not be more than 20% net ofprovisioning
- Past Due Portfolio Quality: 20% net ofprovisioning
- Capital Adequacy Ratio (CAR): 15%
- Debt-to-Equity Ratio (DER): Not to exceed 80:20 afterloan
- Liquid Asset to Deposit Ratio: 10% but low liquidity shall not be a disqualifyingfactor
- Borrower Risk Rating (BRR): BRR 5 orup
- Regulating Agency: SEC, CDA andBSP
Ø Loan Features: SB Corp. to Conduit
- Credit Line Amount: Based on SB Corp.assessment
- Credit Line Term: 1 year subject to annualreview
- PN Term: Up to 24months
- Repayment Term: Monthly or Quarterly
- Interest Rate: 2%p.a.
- Grace Period/ Pre-payment Penalty/ Rebates: No grace period on principal; No pre-payment penalty; Simultaneous payment of principal and interest; No rebates
- Penalty Fee for Late Payment: 0.5% permonth
- No CollateralRequirement
- Service Fee: 0.5% per loan release
- Manner of Loan Release: Via bank orcheck
- Schedule of LoanRelease:
- Advance drawdown (loan amount not yet secured by sub-PN ofend- borrowers) depending on financial profile of the MFI but not to exceed 50% of the approved loan amount at anypoint.
Ø Loan Features: Conduit to Micro Enterprise Borrower
- Loan Limit: Up to P100T toend-borrower
- Manner of Loan Release/ Schedule of Loan Release/ Repayment Term/ Tenor/Collection System: Conduit free todetermine
- Interest Rate and service Fees: Up to 2.5% per monthall-in
D. ENTERPRISE REHABILITATION FACILITY (ERF) FOR MICROENTERPRISES
Facility under the P3 program that covers all natural and man-made calamities that adversely affect microbusinesses in vulnerable areas. This will be a quick response for efficient mobilization of loan funds for immediate recovery and rehabilitation of microenterprises in the event of natural disasters.
Disasters brought about by the following natural calamities- typhoon, earthquake, volcanic eruption, flood, tsunami, tornado, drought and other effects of climate change
Man-made disasters- fire, war, and terrorism
Areas and sectors to be financed must be declared under the state of calamity or reported by the NDRRMC to be severely devastated
Applicable Loan Guidelines
Existing lending guidelines under the P3 retail lending shall apply with the following . However, since this loan facility aims to provide immediate relief to rehabilitate affected MEs, special loan terms will be implemented as follows:
- should have an ongoing registered business or livelihood activities for at least one year prior to the calamity, and that the business was severely damaged by the disaster
- may be a start-up business for victims of war or terrorism and those who are displaced by the disaster, and have either relocate their business or start a new businessventure
- loan applicant’s regular membership with a credit delivery partner Coop is not
- purchase of assets that will produce sales/newinventories
- replacement for repair of fixed assets
- financing of restructured loans arising from thecalamity
Maximum of P200,000 by micro end-borrower subject on the following limits:
- up to P50,000 for first time borrower withoutPDC
- up to P200,000 for first time borrower withPDC
- Up to 1.5% effective interest rate per month or 18% per annum (allinclusive)
- for loan applications financed through the CDP coops, the whole interest charges should will go to the coop as servicefee
- payable up to 24 months, subject to monthlyamortization
- grace period- after six months (for principalonly)
What is Pondo sa Pagbabago at Pag-asenso (P3)?
The P3 fund is designed to be lent out to micro enterprises with asset size not exceeding P3.0 million at not more than 2.5% per month all in interest rate and service charges. This 2.5% monthly cap is an effective rate, based on diminishing balance of the principal portion of the loan.
5-6 lending imposes an interest rate of at least 20% monthly and could go significantly higher given the weekly or daily collection schedule.
ANO ANG P3?
Ang Pondo sa Pagbabago at Pag-asenso (P3) ay nilikha bilang tugon sa direktiba ng Pangulong Rodrigo R. Duterte na mai-angat and micro, small and medium enterprises (MSME) sector.
Ito ay naglalayong makapagbigay ng alternatibong mapagkukunan ng karagdagang puhunan para sa maliliit na negosyante na humihiram mula sa mga “5-6” lenders.
Who are the beneficiaries of P3?
- Any self-employed or micro entrepreneur engaged in legitimate livelihood or business activity for at least one year can borrow from P3
- The micro entrepreneur should have a government-issued ID
- The micro entrepreneur should have been issued a Barangay Clearance in the past 3 months
- Evidence of micro enterprise activity for at least one year (certification by LGU and/or other government offices is acceptable among others
- Proof of one (1) year residence
SINO ANG MAAARING HUMIRAM SA P3?
Target ng programang ito na maabot ang mga maliit na negosyante na may rehistradong negosyo sa baranggay, munisipyo o sa DTI na kasalukuyang
humihiram sa 5-6 lending. Kailangan din na ang negosyo ay mahigit isang taon na.
How much can a micro entrepreneur borrow from the program?
A microenterprise borrower may avail P5,000 up to P200,000 depending on the size of the
business and the enterprise's ability to pay. For entreprises with at least one (1) employee,beneficiary can borrow up to P200,000.
The fund should be used for the enterprise's expansion and/or additional supplies of the business.
MAGKANO ANG MAARING HIRAMIN?
Mula Php 5,000 hanggang Php 200,000
MAGKANO ANG INTERES?
Hindi tataas sa 2.5% kada buwan
- The Small Business Corporation (SB Corp) partnered with at least 290 microfinancing institutions (MFIs) and/or cooperatives throughout the country where the Corporation channels the funds allocated by the National Government for P3 (A complete list is available on the website www.sbgfc.org.ph). The micro entrepreneur will have to accomplish a loan application form issued by the MFI. He/She should have a government-issued ID, a Barangay Clearance in the past 3 months, Evidence of micro enterprise activity for at least one year (certification by LGU and/or other government offices is acceptable among others and proof of one (1) year residence.
- Microenterprises wanting to borrow may also visit the nearest SB Corp Desk Office, SB Corp P3 Field office. DTI Negosyo Center, DTI Regional or Provincial Offices for assistance in identifying a nearest partner MFI.
SAAN PWEDENG MAG-APPLY NG P3 LOAN?
Maaring lumapit sa mga partner microfinance institutions (MFIs) o credit delivery partners (CDP) ng Small Business Corporation (SB Corp).
Ang kumpletong listahan ay maaring makuha sa www.sbgfc.org.ph o sumangguni sa pinakamalapit na SB Corp Desk Office o DTI Negosyo Center.
How long is the P3 loan processing?
Loans are processed within twelve (12) working days but will be reduced to six (6) days once the Fintech enabled for Loan Origination System is in use.
GAANO KATAGAL ANG PAGPROSESO?
Labindalawang araw* (12) pero maaring bumaba sa anim* (6) na araw sa oras na LOS system (Fintech assisted) na ang ginagamit na systema ng pagpapa-utang.
* working days
- Kumpletong application form
- Barangay/Municipal Business Permit
- DTI Business Name Registration (para sa loan na lampas 50,000)
- Photocopy ng Government-issued ID
- ID picture
How/Where can I reach SB Corp. for additional details?
For more information, micro entrepreneur can visit or call the following:
www.sbgfc.org.ph or call the P3 hotline (02)8 651-3333
Department of Trade and Industry: (02) – 7 751-3330
You may also contact the nearest P3 Partner Financial Institution or P3 Provincial Coordinators. Please click the link below:
SUCCESS STORIES - a collection of stories of P3 borrowers