SME Unified Lending Opportunities for National Growth (SULONG)
Program Objectives:
* To simplify and standardize the lending procedures of government financial institutions (GFIs) thereby enhancing the SMEs access to needed funds;
* To shorten the list of documentary requirements to further facilitate the lending process;
* To create a wider, borderless financing system that will afford the SMEs greater access to short- and long- term funds; and,
* To lower the effective cost of borrowing by SMEs and liberalize the requirements.
Eligible Borrowers:
* Enterprises in all industries except trading of imported goods, liquor, cigarettes, and extractive industries; and,
* Enterprises that are at least 60% Filipino owned, whose assets are valued at not less than P3.0 Million, but not more than P100.0 Million, excluding the value of the land, or subject to ownership rules as defined under existing Philippine laws for specific industries.
Loan Purposes:
* Short-Term Loans – For export financing (export packing credit) or a credit line for temporary working capital
* Long-Term Loans – For permanent working capital, purchase of equipment or lot, or construction of a building/warehouse
Terms/Requirements:
Loan Amount:
* Short-term Loans – Up to 70% of the value of the LC/PO (export packing), or 70% of working capital requirement (temporary working capital); maximum P5.0 M
* Long-term Loans – Up to 80% of the incremental project cost; maximum of P5.0 M
Interest Rates:
* The participating GFIs will charge the same rate for the program based on a regular review.
* Rates for loan releases (effective until 31 December 2008):
Fixed Rate:
o Short-term loan up to 1 year – 9%
o Term loan of up to 3 years – 12%
o Term loan of up to 5 years – 14%
Variable Rate:
o Term loan of up to 3 years – 11.0%
o Term loan of up to 5 years – 13.5%
* Interest rates are revised periodically.
Maturity / Repayment:
* Short-term loans – Maximum of one year
* Long-term loans – Maximum of five years, inclusive of a maximum one year grace period on principal monthly
amortization
Security: The program will not decline a loan only on the basis of inadequate collateral. However, the borrower must be willing to mortgage any available business and personal collateral, including
assets to be acquired from the loan, to secure the borrowing. The following are acceptable collaterals:
* REM
* Machinery & Equipment
* Hold-out on Deposit
* Deed of Assignment on inventory and receivables
* JSS of principal stockholders/officers
* Guarantee cover from SBGFC
Participating GFIs: Land Bank of the Philippines, Development Bank of the Philippines (DBP), Social Security System, Small Business Guarantee and Finance Corporation, Philippine Export-Import Credit Agency (PhilEXIM), Quedan and Rural Credit Guarantee Corporation (Quedancor), National Livelihood Support Fund (NLSF)
Contact Details:
LAND BANK OF THE PHILIPPINES (LBP)
1598 M.H. Del Pilar corner Dr. J. Quintos Streets, Malate, Manila
Programs Management Department II (PMD II)
Phone: (632) 522.0000 (632) 551.2200
locals 2448, 2589, 2728, or 2650
Telefax: (632) 405.7640
E-mail: sme-pmu@mail.landbank.com
