How to avail SSS loan for your startup business?

SSS Loans for your Startup Business 1

What is the Business Development Loan Facility?

The Business Development Loan Facility is a lending facility of the Social Security System (SSS) designed to contribute to the nation’s economic growth and development by providing financial assistance to the business sector for the purpose of increasing productivity and enhancing potential earnings through expansion, diversification and other business development projects.

It also aims to support the government’s program of invigorating economic activity and providing more employment opportunities.

How can an SSS member avail himself of the loan facility?

SSS member-employers may avail of the loan facility through the SSS accredited participating financial institutions (PFIs) which will on-lend the fund to eligible borrowers for financing.

What are the purposes of the loan?

The loan may be used for the following purposes:

1. Site development;
2. Enhancement or modernization of existing facilities;
3. Construction or repair of building and other civil works;
4. Acquisition or repair/upgrading of machinery and equipment including furnishings;
5. Acquisition of existing facilities;
6. Acquisition of land (up to 50% of the acquisition cost); or
7. Working capital

Who may borrow under the loan Facility?

The eligible borrowers shall be new or existing private industries and enterprises including registered Barangay Micro Business Enterprises (BMBEs) with the following qualifications:

1. Single proprietorship, Partnership or Corporation, as least 60% Filipino owned, including cooperatives and non-governmental organizations;

2. Engaged in any business activities allowed/registered under the Philippine laws such as but not limited to the following

a. Agri-Business – contract growing, aquaculture
b. Food Processing – rice mill, oil mill, feed mill, meat processing, etc.;
c. Manufacturing – garment, ceramics, textile, furniture, construction materials
d. Commercial Production – particularly of food and basic consumer items and products for export
e. Service-Oriented enterprises – transportation, warehousing, utilities, communications, etc.
f. Tourism Related Projects – hotel, resort, theme park, etc.
g. Real Estate Development Projects – industrial estate development
h. Sustainable energy projects – construction of green building, waste management system, sewerage treatment plant, etc.
i. Extractive Industries – mining, quarrying, dredging, oil and gas extraction projects
j. Forest Development Projects – plantation, reforestation, regeneration and other forest related projects
k. Trading Business
l. Leasing/Lending Business.

3. Have proven track record of profitability for existing enterprises; provided that if the company incurred losses in any year during the past three (3) years, the average income of past two (2) or three (3) years should be positive. The three (3) year track record of profitability may be waived for enterprises which started operations during the last five (5) years. In any case, the borrower should be able to justify projection of viable operations with debt-equity ratio not exceeding 3:1 after financing; and

4. Must be an SSS member-employer in good standing.

The borrower is also subject to other criteria and policies which the Social Security Commission may impose from time to time.

How much is the loanable amount?

The maximum loanable amount shall be the lowest of the following, provided the borrower’s debt-equity ratio after financing shall not exceed 3:1 and that its total loan with the SSS shall not be more than five percent (5%) of the SSS Investment Reserve fund (IRF):

a. Amount of loan being applied;
b. Actual need of the borrower(total project cost)
c. Loan value of the assigned collateral or securities; or
d. Maximum of P500.0 million per borrower.

How much is the interest rate?

The interest rate of the loan may be variable or fixed based on the prevailing SSS pass-on rate to PFI plus PFI’s spread. The prevailing interest rates shall be reviewed monthly.

What is the term of the loan?

The loan shall be payable monthly, quarterly, semi-annually or annually based on the PFI’s approved amortization schedule and shall have a maximum term of fifteen (15) years with a grace period on principal payment.

What are the acceptable collaterals?

The loan shall be secured by any collateral acceptable both to the PFIs and the SSS provided the loan is fully secured.

How much is the penalty in case of pre-termination of the loan?

No pre-termination fee/penalty shall be charged in case of pre-payment of loan.

Where should the member file his loan application?

The loan application shall be filed with any of the following SSS’ accredited participating financial institutions (PFIs/banks):

Development Bank of the Philippines
Sen Gil Puyat Ave., Makati City
Fund Sourcing Department
Tel. No. 815-0916
Philippine Veterans Bank
101 V.A. Rufino St. Legaspi Village, Makati City
Commercial Banking Department
Tel. No. 902-1629
Land Bank of the Philippines
Land Bank Plaza, 1598 M. H. del Pilar, Malate
Programs Management Department
Tel. No. 522-0000 loc. 2448
Planters Development Bank
314 Buendia Ave., Makati City
Program Management Unit
Tel. No. 884-7600 loc. 5183
Valiant Rural Bank-Iloilo
41 A. Mabini Street, Iloilo City
Special Accounts Department
Tel. No. 336-6396 loc. 210

The above list of PFIs is subject to change. Please confirm the accreditation of these PFIs with the Housing and Business Loans Department, Business Loans Administration Section.

For more information, please visit the Housing and Business Loans Department, SSS Main Building, East Ave., Diliman Quezon City or you may call telephone number 920-6401 local 5115 or 5129, or e-mail us at or