Countryside Loan Fund – Credit Support for the Environment, Agri-Business, and Small & Medium Enterprises (CLF-CREAM)

Countryside Loan Fund – Credit Support for the Environment, Agri-Business, and Small & Medium Enterprises (CLF-CREAM)

Program Objectives: CLF-CREAM aims to support LANDBANK’s priority sectors thru the provision of medium to long-term credit assistance to the environment-related projects, agri-busines and small and medium enterprises.

Eligible PFIs:
– Commercial Banks/Unibanks
– Rural Banks
– Thrift Banks
– Non-bank Financial Institutions
– LBP Leasing Corporation

Eligible Sub-Borrowers:
– Sole Proprietorships
– Partnerships
– Corporations (which are at least 60% Filipino-owned)
- Cooperatives or Associations

Eligible Projects/Target Sectors:
– Environmental protection projects such as renewable energy projects;
– Agriculture and agri-related productive activities;
- Food and agro-processing ventures;
– Manufacturing activities;
– Product distributions;
– Service-oriented endeavors which support economic activity in the countryside (e.g. transportation, warehousing, post-harvest facilities, schools, hospitals, communications, and utilities, etc.);
– Tourism-related projects (e.g. hotels, inns, resorts, pension houses, etc.);
– Property Development (e.g. mass housing projects, dormitories, and commercial buildings for lease); and,
– Other projects of SME sector.

Loan Purposes:
– Working Capital – initial, existing and incremental;
– Fixed Assets Investment – construction or acquisition of new/existing productive facilities; expansion and
rehabilitation/improvement of existing facilities (excluding land acquisition); and,
– Lease financing.

Terms/Requirements:

Loan Amount:
– Minimum – P100 Thousand

Interest Rates:

LBP pass-on to PFIs:
– Variable rate:
Market-oriented – based on the average 3-month PDST-R2 benchmark rates + spread
- Fixed rate:
Market-oriented – based on the average 3-month PDST-R2
benchmark rates corresponding to the remaining loan term + spread

PFI to Sub-borrower:
– Negotiated freely between PFI and sub-borrower
– No cap on PFI’s spread

Financing Mix (Based on Total Project Cost):
– LBP – 80%
– PFI/Sub-borrower – 20%
– Total 100%

Repayment Terms:

Based on the project cash flow:
– Fixed assets (excluding land acquisition) – maximum of 10 years
– Working capital – maximum of 5 years

Sub-borrower’s Asset Size: No cap (except for SME)

Eligibility Period of Expenditures:
– Not more than 180 days from date of initial project expenditures by the sub-borrower or the PFI’s initial financing, whichever comes later, up to the date of receipt of loan application by WLD.

Collateral:
- Loans must be secured by tangible collaterals or acceptable guarantees consistent with current banking practice and BSP regulations.

Environmental Protection:
– Sub-projects should comply with applicable Philippine laws and regulations governing environmental protection.

Contact Details:
Wholesale Lending Department
Locals 7338, 2365, 2364, 2797, 2707, 7239
Fax: (632) 528.8503
E-mail: plg@mail.landbank.com