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Green Financing Forum April 29, 2013Bohol Tropics Resort, Tagbilaran City, Bohol
A government corporation created in January 1991 under R.A. 6977 and amended under R.A. 9501 known as the Magna Carta for Micro, Small and Medium Enterprises (mSMEs).
Mandated to provide financing initiatives for 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 or SBC.
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 mSME Development Council.
In 2002, SBC 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, SBC is the National Government’s third largest provider of mSME financing, with a lending portfolio of P3.30 Billion.
About Small Business Corporation
An Analysis on SMEs
The FinancingPoint of View
DevelopmentSolutions
from
and
43
1 Information asymmetry ( lack of information on SMEs at various levels - industry, regional andcompany ).
SMEs are high risk due to:• Limited capital flexibility• Vulnerability to market changes• Inadequate management capability• Short business/industry track record
Inferior collateral offering
Problems in SME Financing( From the Point of View of the Banks )
2 High transaction cost of loan packaging/ administration relative to mostly low loan-absorptive capacity of SMEs
43
1Long processing time and poor service
High interest rates
Problems in SME Financing( From the Point of View of SMEs )
2 Voluminous documentation
Largely inaccessible, as offered by banks due to:• High loan floor, effectively barring SEs• Nature/size of collateral requirement• Years of business experience required
3
1
Non-Bankable but Promising SMEs
2 Near Bankable SMEs
Already Bankable SMEs
Types of SMEsThe FinancingPoint of View
from
SBC MSME Credit Delivery Strategy
Direct Lending
for MSMEsCredit
Guarantees for SMEs
Wholesale Lending for SMEs
Wholesale Micro-Finance
Start-Up
Micros
Graduating Micros
Pre-Bankabl
e but Viable MSMEs
Near Bankable
SMEs
Bankable SMEs
Pre-Enterprise Micros
Global
Competitiveness
With MFI capability
building supportWith enterprise
registration support
PROGRAMS
Financing Facilities with SBCorporation
1. Direct Retail Lending Facilities
2. Wholesale Lending Facilities
Facilities:SBC’s Direct Lending Program
1. Fixed Asset Financing – amortized term loan for asset acquisition
2. Working Capital Financing – Amortized term loan and one year credit
line for various working capital requirements
FIXED ASSET FINANCING
(Amortized Term Loan for Asset Acquisition)
WORKING CAPITAL FINANCING
Amortized Term Loan and Credit Line for Various Working Capital Requirements
Minimum - P200 Thousand
Maximum – up to P8 Million (Credit Committee; maybe higher but needs Board approval)
• The project’s market potential and debt-servicing capacity serve as the most critical basis for determining the loan amount.• Maximum Loan-equity ratio of 90:10 as long as borrower’s debt equity ratio does not exceed 70:30
Loan Amount
Fees
Minimum – 8.50%Maximum – 16.00%
Interest rate setting is based on:• Borrower Risk Rating• Collateral cover• Term of loan
Interest Rates
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
Other Fees
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
Sample financed projects with environmental impact
- Fiber resin-based product exporters
- Animal feed processors
- Water distributors
- Food processors
- Lime processing (with limestone quarrying)
- Resorts
HEAD OFFICE 17th & 18th Floors 139 Corporate Center139 Valero St. Salcedo Village, Makati
CityTel. No. : 751-1888Fax No. : 894-1677 or 8135726Website : www.sbgfc.org.ph
SBC Offices
VISAYAS OFFICESVISAYAS GroupUnit 802-B Keppel CenterCebu Business Park, Cebu CityTel. No. : (032) 232 – 1200Telefax No. : (032) 415 - 8280
ILOILO DESK OFFICE
c/o DTI Region 6 Mezzanine Floor DTI Bldg., JM Basa cor. Peralta St., Iloilo
CityTelefax. No. : (033) 509-
8413
TACLOBAN DESK OFFICE
c/o DTI-Region 8 Nacida Bldg.Government Center, PawingPalo, LeyteTelefax No. : (053) 323-8385
BACOLOD DESK OFFICE
c/o DTI - Negros Occ.3F Prudential Life BldgSan Juan – Luzuriaga Sts.Bacolod CityTelefax No. : (034) 704-2203
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