Small and Medium Enterprise Credit Program (SMEC)
Program Goal: To contribute to poverty reduction by providing micro, small and medium enterprises (MSMEs) with access to financing and business development services to enable them to grow, generate jobs and provide income opportunities for men and women.
– Increase MSME and microfinance loan portfolio of SMEC-accredited intermediary financial institutions (IFIs) such as Rural Banks and Thrift Banks and Microfinance Institutions (MFIs).
– Enhance the institutional capacity of accredited IFIs and MFIs to deliver credit.
Qualifications of MSME Sub-borrowers: MSMEs can avail of the loan from SMEC-accredited IFIs if they meet the following qualifications:
– The principal owner is a citizen or permanent legal resident of the Philippines;
– Duly registered business organization which is at least 60% owned by Philippine nationals;
– Have their principal place of business in the Philippines;
– Must be 100% privately-owned with total assets of not more than P15 million at the time the loan is granted.
Loan Purposes: Loan funds may be used for:
– Starting a new business or expanding an existing business
– Acquiring fixed assets such as land, building and machinery
– Upgrading of facilities or equipment, or adoption of cleaner technology
– For services such as equipment installation
– Working capital
Loan Amount, Interest, Repayment Terms and Security:
Subject to discussion/negotiation by the MSME sub-borrower with the IFI/MFI.
Phone: (632) 527.7741 to 48
Telefax: (632) 527.3751
PHILIPPINE BUSINESS FOR SOCIAL PROGRESS (PBSP)
Philippine Social Development Center
Magallanes corner Real Streets, Intramuros, Manila
Source: Financing Programs (Micro, Small, and Medium Enterprises) – DTI-BMSMED, 2010 Edition