Micro-Lending Through Small Micro Finance Providers (Micro-Leap)

SMALL BUSINESS CORPORATION (Small Business Guarantee and Finance Corporation)
17th & 18th Floors, 139 Corporate Centre, Valero Street Salcedo Village, Makati City

Micro-Lending Through Small Micro Finance Providers (Micro-Leap) 1

Program Title: MICRO-LENDING THROUGH SMALL MICRO FINANCE PROVIDERS (MICRO-LEAP)

Target Conduit:
* Small community cooperatives
* Small non-government organizations (NGOs)
* People’s Organizations (POs)

Minimum Qualifications:
o Asset size of at least P500 Thousand and net worth of at least P300 Thousand
o At least one year in microfinance operations
o At least 20 microfinance clients
o Must have a manpower of at least two, one of whom may be part-time
o Latest Financial Ratios
– Current ratio of at least 1.2
– Capital Adequacy Ratio of at least 20%
– Past due rate not more than 20%
o Borrower Risk Rating of “5” or better per SBC evaluation

Loan Purpose: For re-lending to micro-borrowers

Terms/Requirements:

Loan Amount:
* Minimum of P200 Thousand
* Maximum of P10 Million on the first year
* Maximum of P20 Million for the succeeding years

Line Drawdown:
* Minimum of P100 Thousand
* Maximum 30% of credit line

Term and Line Expiry:
* One year credit line, subject to renewal

Repayment Term per Drawdown:
* 360 days, payable quarterly; may be up to 2 years, if justified by nature of micro-borrowers’ business as in the case of graduating micros

Interest Rate: Available upon request.

Service Fees:
* Evaluation Fee of 0.2% to 0.5% of credit line
* Processing Fee of 0.5% of loan availment

Pass-on Rate Incentive:
* MFIs with monthly average end-borrower pass-on rate of 2.5% (1.2% for wholesalers), inclusive of service fees, shall be given an incentive. All fees (evaluation and loan availment processing fees) shall be refunded in favor of the MFI upon its credit line renewal.

Security:
* Continuing Surety Agreement of principals (a must)
* Hard collateral may be required on case to case basis.

Documentary Requirements:

* Letter of Intent to Borrow
* Notarized Client Information Sheet with 1×1 recent ID picture of each principal stockholders/officer (SBGFC form); for banks, Bio-data of all major stockholders and/or officers as submitted to BSP
* Business registration papers
* Board Resolution to borrow and on authorized signatories with specimen signature/s
* Audited financial statements for the past three years, if applicable, and latest interim financial statements (not more than 6 months old)
* Organizational structure/background information
* Schedule of borrowings including details on terms of payment, collateral cover and credit status
* Certificate of good standing from creditors (if applicable)
* Ageing of loan portfolio
* Schedules of past due, microfinance PAR and loan-loss provisioning

Contact Details:
SB Corporation Head Office
17th Floor, 139 Corporate Centre
Valero St., Salcedo Village, Makati City
Phone No. (632) 751.1888
Fax No.: (632) 894.1677
URL: www.sbgfc.org.ph