PROGRAM PRESENTATION
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Transcript of PROGRAM PRESENTATION
PROGRAM PRESENTATION
PROGRAM PRESENTATION
July 2007 version
A government corporation created in January 1991 under R.A. 6977 known as the Magna Carta for Small Enterprises.
Mandated to provide financing initiatives
for Micro, Small and Medium Enterprises or MSMEs.
Commenced its operations on July 16, 1992.
On November 2001, SBGFC and the Guarantee Fund for Small and Medium Enterprises (GFSME) were merged through Executive Order No. 28 and became known as the Small Business Corporation.
About Small Business Corporation
About Small Business Corporation
An attached agency of the Department of Trade and Industry (DTI) and is under the policy, program and administrative supervision of SME Development Council.
In 2002, SBGFC played a key role in the drafting of the SME Development Plan, and is one of the lead agencies implementing the National SME Agenda.
Today, SBGFC is the National Government’s third largest provider of SME financing, with a lending portfolio of P2 Billion.
Has over 3,000 MSME clients, 71 partner financial institutions, and serving 61 of the 81 provinces across the country.
About Small Business
Corporation
About Small Business
Corporation
SBC MSME Credit Delivery Strategy
SBC MSME Credit Delivery Strategy
Direct Lending
for MSMEs
Credit Guarantees
for SMEs Wholesale Lending for SMEs
Wholesale Micro-
Finance
Start-UpMicros
Graduating
Micros
Pre-Banka
ble but
Viable
MSMEs
Near Banka
ble SMEs
Bankable
SMEs
Pre-Enterprise
Micros
Global
Competitive
ness
With MFI capability building support
With enterprise
registration support
Minimum Borrower Qualifications Minimum Borrower Qualifications
Must be FILIPINO-OWNED - at least 60% Filipino-owned in the case of corporations
Must be FILIPINO-OWNED - at least 60% Filipino-owned in the case of corporations
Must NOT be engaged in: - Farm-level crop or livestock production (pre and post-harvest operations only)
- Purely trading of imported goods
- Vice generating activities - Real estate development (SME contractors are qualified)
Must NOT be engaged in: - Farm-level crop or livestock production (pre and post-harvest operations only)
- Purely trading of imported goods
- Vice generating activities - Real estate development (SME contractors are qualified)
The SBCDirect Lending Program
The SBCDirect Lending Program
Must be an SME with an ASSET SIZE of: - Not less than P500 Thousand- Or not more than P100 Million, excluding the value of land
Must be an SME with an ASSET SIZE of: - Not less than P500 Thousand- Or not more than P100 Million, excluding the value of land
Must have at least 1 YEAR PROFITABLE BUSINESS TRACK RECORD
- Start-ups and/or those with less than 1 year track record can be considered only under Financing for Start-Ups and Receivables Financing
Must have at least 1 YEAR PROFITABLE BUSINESS TRACK RECORD
- Start-ups and/or those with less than 1 year track record can be considered only under Financing for Start-Ups and Receivables Financing
Minimum Borrower Qualifications Minimum Borrower Qualifications
The SBCDirect Lending Program
The SBCDirect Lending Program
Must have a BRR SCORE of “5” or better
Must have a BRR SCORE of “5” or better
Borrower Risk Rating (BRR) SystemWhat is it about?
Borrower Risk Rating (BRR) SystemWhat is it about?
The BRR System is an instrument used to help The BRR System is an instrument used to help control credit risks; it helps SBC to identify and control credit risks; it helps SBC to identify and mitigate areas of risk involved in extending mitigate areas of risk involved in extending financing to SME clients.financing to SME clients.
It is a risk rating model that focuses on four It is a risk rating model that focuses on four areas of concern in an enterprise: areas of concern in an enterprise:
Cash (financials)Cash (financials) - 50 pts.- 50 pts.AdministrationAdministration - 20- 20MarketMarket - 15- 15ProductionProduction - 15 - 15
100 pts.100 pts.
For an enterprise to qualify, it should at least For an enterprise to qualify, it should at least get a score of 55 points or BRR 5. get a score of 55 points or BRR 5.
This system is being implemented by SBC to This system is being implemented by SBC to have a risk-based lending approach in SME have a risk-based lending approach in SME financing.financing.
SBGFC’s Direct Lending Facilities
SBGFC’s Direct Lending Facilities
1. Fixed Asset Financing
2. Working Capital Financing
Three Facilities:
Transactional LoanSoft Investment LoanMicro Working Capital Loan
3. Financing for Start-up Enterprises
Credit Line/Case to Case Loan• Transactional Loan
Amortized Term Loan• Soft Investment Loan• Micro Working Capital Loan
Three Facilities under Working Capital Financing:
Working Capital FinancingWorking Capital Financing
Transactional LoanTransactional Loan
Target Borrowers
Exporters
Type of Loan
1-Year Credit Line
Transactional basis
Subject of Financing
Purchase Orders/ LCs
Transactional WC LoanTransactional WC Loan
Loan Amount
Up to 60% of POs, including LCs
Up to P8 Million for borrowers with SBC track record
Up to P2 Million if new borrower (may be higher in meritorious cases)
Up to P1.0 Million if stand-by export credit line
Repayment Term Collection Date of Purchase Order – up to 180 days per drawdown, but not to exceed the actual payment date of buyer
Collateral Requirement
- Assignment of LC/PO
Soft Investment Loan
Financing of soft or intangible investment requirements of the enterprise which includes:
Research and development Trade fair participation Pre-operating expenses for expansion projects Trainings Rental deposit IT software package Franchise development
Micro Working Capital Loan
AR and/or Inventory financing for micro and small enterprises who are:
Not yet ready for a
credit
line transaction Prefers to amortize
its
working capital loan Most probably do not
have a
working accounting
system
Amortized Working Amortized Working Capital LoanCapital Loan
Amortized Working Capital Loans
Amortized Working Capital Loans
Soft Investment
Loan
Micro Working Capital Loan
Loan Purpose/Subject of Financing
Financing of soft or intangible investments
Financing of receivables and/or inventory
Repayment Term
Up to 3 years Payable monthly or quarterly
Up to 3 years Payable monthly or quarterly
Loan Amount Up to 90% of the project cost Up to P500 Thousand
Up to P500 Thousand Up to 70% of Computed Working Capital Requirement
Lending Features
Amortized Working Capital Loans
Amortized Working Capital Loans
Soft Investment
Loan
Micro Working Capital Loan
Collateral Requirement
Must be at least 80% secured by hard collateral
Must be at least 80% secured by hard collateral
Other Loans Terms
The borrower is required to liquidate the loan including the submission of proof of disbursement such as OR, invoices, certification among others
Lending Features
Service FeesService Fees
Credit Lines *
Minimum – 9.6%
Maximum – 13.0%
*Inclusive of 1% account management fee
Credit Lines *
Minimum – 9.6%
Maximum – 13.0%
*Inclusive of 1% account management fee
(for 2nd Quarter 2007)
Amortized Term Loans
Minimum – 9.8%
Maximum – 17.0%
Amortized Term Loans
Minimum – 9.8%
Maximum – 17.0%
Interest rate setting is based on:
• Borrower Risk Rating• Collateral cover• Term of loan
Interest rate setting is based on:
• Borrower Risk Rating• Collateral cover• Term of loan
Interest RatesInterest Rates
Service FeesService Fees
Evaluation Fee (shall be deducted from the approved loan)
- ½ of 1% of approved loan but not less than P3,000
Processing Fee
- ½ of 1% of loan release
Out-of-town Processing Fee
- P2,000 to P4,000 depending on the distance or equivalent air fare
Commitment Fee (P4,000)
- In a form of dated check which shall be collected during the first
project visit and shall be deposited to the account of SBC within
one month once the loan is approved - Shall be deducted from the required fees upon loan availment
- Shall be forfeited in favor of SBC in case of non-availment - Shall be returned in case of loan denial
Evaluation Fee (shall be deducted from the approved loan)
- ½ of 1% of approved loan but not less than P3,000
Processing Fee
- ½ of 1% of loan release
Out-of-town Processing Fee
- P2,000 to P4,000 depending on the distance or equivalent air fare
Commitment Fee (P4,000)
- In a form of dated check which shall be collected during the first
project visit and shall be deposited to the account of SBC within
one month once the loan is approved - Shall be deducted from the required fees upon loan availment
- Shall be forfeited in favor of SBC in case of non-availment - Shall be returned in case of loan denial
Other Fees
Basic Documentary Requirements
Basic Documentary Requirements
Accomplished Business Loan Application Form (with recent ID picture)
Notarized Client Information Sheet
Latest In-House Financial Statements
Latest ITR with BIR-filed Financial Statements
Registration Papers
Location Map of the Project
Accomplished Business Loan Application Form (with recent ID picture)
Notarized Client Information Sheet
Latest In-House Financial Statements
Latest ITR with BIR-filed Financial Statements
Registration Papers
Location Map of the Project
HEAD OFFICE
17th & 18th Floors 139 Corporate Center
139 Valero St. Salcedo Village, Makati City
Tel. No. : 751-1888Fax No. : 894-1677 or
8135726Website : www.sbgfc.org.ph
HEAD OFFICE
17th & 18th Floors 139 Corporate Center
139 Valero St. Salcedo Village, Makati City
Tel. No. : 751-1888Fax No. : 894-1677 or
8135726Website : www.sbgfc.org.ph
SBC OfficesSBC Offices
LUZON OFFICESLUZON OFFICES
LA UNION DESK OFFICE
La Union Trade CenterCity Hall Complex
Quezon Ave. San Fernando City, La
UnionTelefax No.: (072) 242-
7647
LA UNION DESK OFFICE
La Union Trade CenterCity Hall Complex
Quezon Ave. San Fernando City, La
UnionTelefax No.: (072) 242-
7647
BICOL DESK OFFICE
FEDMACSI Bldg., Panganiban Drive Naga CityTelefax No.: (054) 473-
9975
BICOL DESK OFFICE
FEDMACSI Bldg., Panganiban Drive Naga CityTelefax No.: (054) 473-
9975
ISABELA DESK OFFICE
Rm. 4 2nd Floor OH Commercial Bldg.
San Fermin, Cauayan CityTel. No. : (078) 652-1964
ISABELA DESK OFFICE
Rm. 4 2nd Floor OH Commercial Bldg.
San Fermin, Cauayan CityTel. No. : (078) 652-1964
SBC OfficesSBC Offices
TACLOBAN DESK OFFICE
c/o DTI-Region 8 Nacida Bldg.
Government Center, Pawing
Palo, LeyteTelefax No. : (053) 323-
8385
TACLOBAN DESK OFFICE
c/o DTI-Region 8 Nacida Bldg.
Government Center, Pawing
Palo, LeyteTelefax No. : (053) 323-
8385
ILOILO DESK OFFICE
c/o DTI Region 6 Mezzanine Floor DTI Bldg., JM Basa cor. Peralta St., Iloilo
CityTel. No. : (033) 335-0060Fax No. : (033) 335-0083
ILOILO DESK OFFICE
c/o DTI Region 6 Mezzanine Floor DTI Bldg., JM Basa cor. Peralta St., Iloilo
CityTel. No. : (033) 335-0060Fax No. : (033) 335-0083
VISAYAS AREA OFFICE
Unit 802-B Keppel CenterAyala, Cebu City Tel. No. : (032) 232 –
1200Fax No. : (032) 234 –
4500
VISAYAS AREA OFFICE
Unit 802-B Keppel CenterAyala, Cebu City Tel. No. : (032) 232 –
1200Fax No. : (032) 234 –
4500
VISAYAS OFFICESVISAYAS OFFICES MINDANAO OFFICES
MINDANAO OFFICES
MINDANAO AREA OFFICE
7th Floor Unit 76 Landco Corporate CenterJP Laurel Ave. Bajada, Davao
CityTel. No. : (082) 221 – 1488Fax No. : (082) 221 –
0858
MINDANAO AREA OFFICE
7th Floor Unit 76 Landco Corporate CenterJP Laurel Ave. Bajada, Davao
CityTel. No. : (082) 221 – 1488Fax No. : (082) 221 –
0858
CAGAYAN DE ORO DESK OFFICE
c/o DTI Region 10Corrales cor. Luna St.Cagayan de Oro CityTel. No. : (088) 231-
5703
CAGAYAN DE ORO DESK OFFICE
c/o DTI Region 10Corrales cor. Luna St.Cagayan de Oro CityTel. No. : (088) 231-
5703
GENERAL SANTOS DESK OFFICE
c/o DTI-General Santos CityOsmena South St., Gen. Santos
CityTel. No. : (083) 552-8385Fax No. : (083) 553-1032
GENERAL SANTOS DESK OFFICE
c/o DTI-General Santos CityOsmena South St., Gen. Santos
CityTel. No. : (083) 552-8385Fax No. : (083) 553-1032
Grow Your Business !! with
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