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Retail Lending for Micro and Small Enterprises

DEVELOPMENT BANK OF THE PHILIPPINES (DBP) Head Office: Sen. Gil J. Puyat Avenue, cor. Makati Avenue, Makati City Program Title: RETAIL LENDING FOR MICRO AND SMALL ENTERPRISES [caption id="" align="alignnone" width="500"]philippine money photoPhoto by Trishhhh [/caption] Program Objectives: - To enhance micro and small enterprises’ access to credit through a simplified procedure and shorter turn around time. - To improve the DBP’s role in developing micro and small enterprises and help them build up their assets. - To expand DBP’s loan portfolio for micro and small enterprises consistent with the Magna Carta for MSMEs. Eligible Projects: - Any duly registered enterprise of good standing in the community. Eligible Borrower-MFIs: - Single Proprietorships - Partnership - Corporation - Cooperative - Other entities with legal personality to engage in a business enterprise Coverage: Start-up or existing micro and small enterprises with asset size of not more than PhP15.0 million and with loan requirements of over PhP150,000 but not more than PhP10.0 million. Eligible Loan Purpose: - Production - Working Capital (short-term or permanent) - Investment and expansion in Plant and/or equipment - Purchase Order/Letter of Credit Financing (P.O./L.C.) Terms/Requirements: Loan Amount: Up to 90% of the Total Project Cost (TPC) Equity Requirement: - The borrower shall put up a minimum equity of 10% of total project cost. - For P.O./L.C. financing, the loans shall be up to 80% of the amount of the instrument or based on actual cost of the goods purchased. Interest Rates: Prevailing market rate Fees: - A one-time service fee shall be charged upon approval of the loan equivalent to P1,000.00 or 0.1% of the loan, whichever is higher - Documentary Stamp Tax - Monthly Interest rates are inclusive of GRT and all other fees Collateral: - Unregistered Real Estate Mortgage and Chattel on TCT and Equipment - Unregistered Mortgage on Tax Declaration/CLOA and OCT - For P.O./L.C. Financing, a Deed of Assignment on Irrevocable P.O./L.C. is accepted provided the term shall not exceed its expiry date - Other alternative collaterals such as post dated checks (PDCs), assignment of contracts/receivable/inventory Repayment Terms: Based on enterprise’s development period but not to exceed ten (10) years, payable based on business cash cycle. Maximum Grace Period: - Three (3) years on principal for projects with short gestation period. - Five (5) years on principal and interest on long gestating projects. Checklist of Requirements: I. General - Application form - Business Registration (from DTI/SEC/CDA/DOLE) - Business Permit (from LGU) - Business Evaluation Form (for loans above PhP1 million) For Corporations and Cooperatives - By-Laws and Articles of Incorporation/Cooperation - Board Resolution and Secretary’s Certificate authorizing the loan, indicating the authorized signatories II. Additional Requirements (if applicable) Real Estate Collateral - Two copies of Sketch/Location Map - Two copies of TCT/OCT Chattel Collateral -Affidavit of Ownership and Certification of Non-Encumbrance with specifications -Copy of OR/CR for transportation equipment Checklist of Requirements: - Loans PhP1.0 million and below: - Utility/Credit card billings or three (3) months bank statement Franchise: - Business Profile of Franchisor - Photocopy of Franchise Agreement - Endorsement by Franchisor - Franchise Package Kit Term Loan (Start-Up): - Business Plan - Statement of Assets, Liabilities and Networth of Principal Borrower/s - Bank Statement for at least three (3) months - Business Evaluation Form Term Loan (Existing): - Financial Statements for the past three (3) years (in house financial statements acceptable) - Business Plan - Business Evaluation Form Dealership: - Photocopy of documents submitted to the mother company - Dealership Contract - Letter of Endorsement from mother company/supplier Credit Line: - Bank Statement for at least three (3) months - Projected Cash Flow - Projected Income Statement Purchase Order (P.O.)/Letter of Credit (L.C.) Financing: - Projected Cash Flow - Projected Income Statement - Copy of Irrevocable L.C./P.O. Contact Details: SVP Brillo L. Reynes Phone: (632) 817.0473 Head, Small & Medium Enterprise Department SM Romeo B. Carandang Phone: (632) 892.2357 Head, SME Unit Trunkline: 818.9511/9611 loc. 2546


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Retail Lending for Micro and Small Enterprises

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