FINANCIAL SUPPORT
PROGRAMS PONDO SA PAGBABAGO
AT PAG-ASENSO (P3)
ENTERING THE OVERSEAS MARKET
TECHNICAL COOPERATION AND R&D SUPPORT
What is SSF Project
SSF GUIDELINES
SSF Eligible Projects
Projects must address the processing and manufacturing gaps or bottlenecks of the priority industry cluster brought about by any of the following
Projects must increase MSME productivity in terms of
competitiveness
standards
Eligible Cooperators
(e.g. NGOs, people’s organizations, cooperatives)
Significance of SSF to Nation Building
The SSF is a pioneering strategy of DTI in 2013 which aims to address gap in the innovation capacities of our MSMEs. It received positive review in creating substantial impact on jobs and productivity in its early implementation stage from the Philippine Institute of Development Studies (PIDS), which was then tasked by the Department of Budget and Management (DBM) to conduct an evaluation of government programs to avoid automatic carryover and incrementalism in budgets in line with the commitment of the government to pursue zero-based budgeting.
The potential of SSF to improve the plight of our MSMEs and in contributing to the government’s poverty alleviation efforts was supported by many success stories from cooperators who have availed of the program. Coffee farmers, weavers, and meat processors as well as sectoral organizations such as women and PWDs appreciated the machines and equipment provided by DTI under the SSF Project, which have allowed them to achieve higher production capacity, better quality products, and wider market reach.
The SSF Project’s capacity to accelerate poverty reduction efforts was likewise recognized by the Human Development and Poverty Reduction Cluster (HDPRC). It included SSF as one of the programs to support the Strategy on Enhanced Social Protection under HDPRC’s Performance Project Roadmaps for 2019-2022. SSFs are currently present in 30 of the 32 identified provinces as priority areas for program convergence.
Department of Science and Technology (DOST)
- A Manufacturing
- B Medical
- C Construction
- D Consumer Goods.
Advanced Additive Manufacturing R&D Program (AMCen)
Technological Readiness and Innovation Through Advanced Manufacturing in the Philippines (TRIAMPH). The project will focus on the focal areas identified in the AM Road Map which are; (a) Manufacturing, (b) Medical, (c) Construction, and (d) Consumer Goods. The project aims to support the Additive Manufacturing Roadmap through R&D collaborations, education formation, and policy standard formation to ensure the sustainability of AMCen as the national hub for additive manufacturing and provide AM capabilities and consultancy for product and process development, AM services and AM training.
Small Enterprise Technology Upgrading Program (SETUP)
This program aims to boost MSME productivity and competitiveness through technological innovations. The emergence of Industry 4.0 are now becoming mainstream technologies in the manufacturing, industry and service sectors as well. In response to the developments and changes in business landscape, we intend to move forward to implement SETUP 4.0.
Department of Agriculture (DA)
Capacity Building in export market development needs assessment to align with Research and development objective.
FINANCIAL SUPPORT
Under the Memorandum of Agreement (MOA), the SB Corp will avail of Landbank’s e-Payment facility under its Payment Service Provider (PSP) as part of its efforts in providing fast and efficient payment collection services for MSMEs. On the other hand, Landbank, through its Link.BizPortal, will allow SB Corp clients to transact business or pay monetary obligations to SB Corp via the internet using any e-Payment models offered by the bank. The service will only be available to clients maintaining a Philippine Peso account either with Landbank or other banks.
RISE UP
MULTI-PURPOSE LOAN
RISE UP is a loan program that aims to sustain the gains of MSMEs that have survived the past two years of crisis, by providing multi-purpose loans that have soft terms and can be easily accessed. The RISE UP Multi-purpose Loan caters multi-sectoral MSMEs inclusing existing SBCorp borrowers.
What are the products and who are qualified to borrow?
- Micro Multi-Purpose Loan
- is for multi sectoral microenterprises.
- SME Multi-Purpose Loan Suki
- is for existing borrowers of SBCorp in good standing with atleast 6 months repayment track record.
- SME Multi-Purpose Loan First Timers
- for multi-sectoral SMES.
RISE UP TINDAHAN
P3 Wholesale
Partner Accreditation Criteria:
- Lending License
- Must hold a license to engage in lending.
- Operating Period
- Minimum of 1 year operating as a microfinance
institution (MFI).
- Minimum Capitalization
- At least PHP 500,000.
- Net Income
- Positive net income for the past 12 months.
- Microfinance Portfolio at Risk
- 30-day past due ratio (PAR) should not exceed 20% net of provisioning.
- Past Due Portfolio Quality
- 20% net of provisioning or less.
- Capital Adequacy Ratio (CAR)
- At least 15%.
- Debt-to-Equity Ratio (DER)
- Not to exceed 80:20 after the loan.
- Liquid Asset to Deposit Ratio
- At least 10%, but low liquidity is not a disqualifying factor.
- Borrower Risk Rating (BRR)
- BRR 5 or higher.
- Regulating Agencies
- SEC, CDA, and BSP.
Loan Features: Sb Corp. To Conduit
- Credit Line Amount
- Based on SB Corp. assessment
- Credit Line Term
- 1 year subject to annual review
- PN Term
- Up to 24months
- Repayment Term
- Quarterly
- Interest Rate
- no interest on the first year; 3%p.a. for the second year
- Grace Period/ Pre-payment Penalty/
Rebates - No grace period on principal; No pre-payment penalty; Simultaneous payment of principal and interest; No rebates
- Penalty Fee for Late Payment
- 0.5% per month
- No Collateral Requirement
- Service Fee
- 2.75% per availment
- Manner of Loan Release
- Via bank or check
- Schedule of Loan Release
- Advance drawdown (loan amount not yet secured by sub-PN of end- borrowers) depending on financial profile of the MFI but not to exceed 50% of the approved loan amount at any point.
Loan Features: Conduit To Micro Enterprise Borrower
- Loan Limit
- Up to P300T to end-borrower
- Manner of Loan Release/ Schedule
of Loan
Release/ Repayment Term/ Tenor/ Collection System - Conduit free to determine
- Interest Rate and service Fees
- Up to 2.5% per month all-in
MSME FINANCING PROGRAMS
Loan program for sari-sari stores, retail stores, dealers and distributors under the network of partner FMCGs.
Eligible Loan Applicants
- Must be 100% Filipino-owned for sole proprietorship or partnership or at least 60% Filipino-owned MSME for corporation;
- Must have an asset size of not more than P100Million (exclusive of value of land)
- Must have been participating in the supply chain together with an SBCorp- accredited FMCG company for at least one (1) year. For loan availment of more than P1.0M under RISE UP SME Tindahan, enterprise must be participating in the supply chain for at least three (3) years
- Must have no past due account/s under any of SBCorp lending program
PONDO SA PAGBABAGO AT PAG-ASENSO (P3)
CORPORATE FUNDED
Regular Retail Program
Minimum Borrower Qualifications
- At least 60% Filipino-owned;
- With asset size of not more than P100.0M exclusive of value of land where project is located;
- Must have at least 2 years profitable business track record
- DTI or SEC registered, whichever is applicable;
- Not belonging to SBC’s exclusionary list of industries:
- Farm level production involving agriculture, aquaculture and/or livestock (post production activities are however qualified);
- Real estate development (MSME contractors are however qualified);
- Pure trading of imported commodities (unless value-added services are employed which impact positively on the domestic market);
- Vice-generating activities
Regular Wholesale Program
SME Wholesale
Rediscounting window for SME sub-borrowers who are able to meet the following criteria:
Minimum Qualifications Of SME Sub-borrowers:
- At least 60%Filipino-owned;
- DTI or SEC registered, whichever is applicable;
- With positive net income for the immediate past year based on BIR-filed FS;
- DER not exceeding 80:20;
- Not belonging to SBC’s exclusionary list of industries:
- Farm level production involving agriculture, aquaculture and/or livestock (post production activities are however qualified);
- Real estate development (MSME contractors are however qualified);
- Pure trading of imported commodities (unless value-added services are employed which impact positively on the domestic market);
- Vice-generating activities
Graduating Micro Wholesale
Lending window for graduating micro-enterprise sub-borrowers who are able to meet the following criteria: At least 60%Filipino-owned; Any valid business permit (e.g. Mayor’s Permit, BMBE Registration);
- Positive net income for the immediate past year and as of period
- DER not exceeding 80:20
- Total loans inclusive of with PFI’s is not more than P500,000;
- Not belonging to SBC’s exclusionary list of industries:
- Farm level production involving agriculture, aquaculture and/or livestock (post production activities are however qualified);
- Real estate development (MSME contractors are however qualified);
- Pure trading of imported commodities (unless value-added services are employed which impact positively on the domestic market);
- Vice-generating activities
Microfinance Wholesale
- Micro-Lead – for MFIs whose loan portfolio and organizational structure is at least 60% MF
- Micro-Local – for MSME-oriented rural banks
Venture Capital Program
- Objective
- Provide an equity financing to start-up enterprises with high growth potential to develop the business, commercialize and grow their products and services in a sustainable manner.
- Eligible
- Duly registered MSME, organized either as a single proprietorship, partnership or corporation. For enterprises registered as a single proprietorship, the form of ownership must be converted and registered as a corporation.
NATIONAL GOVERNMENT FUNDED
P3 Lending Programs
Designed to be lent out to micro enterprises borrowers with asset size not exceeding P3.0M at not more than 2.5% per month all-in interest rate and service charges. This 2.5% monthly cap is an effective rate, based on diminishing balance of the principal portion of the loan.
P3 Retail – Regular
- Any self-employed or micro entrepreneur engaged in legitimate livelihood or business activity for at least one year can borrow fromP3
- The micro entrepreneur should have a government-issued ID
- he micro entrepreneur should have been issued a Barangay Clearance in the past 3months
- Evidence of micro enterprise activity for at least one year (certification by LGU and/or other government offices is acceptable among others Proof of one (1) year residence
Loan Amount
P5,000.00 to P200,000.00
P5,000.00 to P200,000.00 depending on the size of the business and the ability to pay. For enterprises with at least one (1) employee, beneficiary can borrow up to P200,000.00. The fund should be used for the enterprise’s expansion and/or additional supplies of the business.
Interest Rate
Not more than 2.5% per month
P3 Retail – Special Facilities (Kia/Wia, Marawi, Boracay, Ompong, Rebel Returnees)
*Special considerations are being applied for P3 Implementation of Special Facilities
Equity Investment For Families Of Kia/Wia With Micro Enterprise
Providing micro enterprise investments for families of KIA/WIAs from P50T to P100T. The investment is interest free if paid within two years. If not, amortization will start on the third year with an interest of 2% per annum.
P3 Wholesale
Partner Accreditation Criteria
- Should have license to engage in lending
- At least 1 year operating as an MFI
- Minimum Capitalization: At least P500T
- Net Income is positive for the past 12 months
- Microfinance Portfolio at Risk: PAR – 30 days should not be more than 20% net of provisioning
- Past Due Portfolio Quality: 20% net of provisioning
- Capital Adequacy Ratio (CAR): 15%
- Debt-to-Equity Ratio (DER): Not to exceed 80:20 after loan
- Liquid Asset to Deposit Ratio: 10% but low liquidity shall not be a disqualifying factor
- Borrower Risk Rating (BRR): BRR 5 or up
- Regulating Agency: SEC, CDA and BSP
Enterprise Rehabilitation Facility (Erf) For Microenterprises
Facility under the P3 program that covers all natural and man-made calamities that adversely affect microbusinesses in vulnerable areas. This will be a quick response for efficient mobilization of loan funds for immediate recovery and rehabilitation of microenterprises in the event of natural disasters.
Coverage
- Disasters brought about by the following natural calamities- typhoon, earthquake, volcanic eruption, flood, tsunami, tornado, drought and other effects of climate change
- Man-made disasters- fire, war, and terrorism
- Areas and sectors to be financed must be declared under the state of calamity or reported by the NDRRMC to be severely devastated
ENTERING THE OVERSEAS MARKET
The Export Marketing Bureau (EMB) under the Department of Trade and Industry (DTI) plays a vital role in advancing the growth of Philippine exports. EMB focuses on providing comprehensive support to Filipino exporters, ensuring that Philippine products and services gain prominence in the global market. EMB drives initiatives aimed at developing the country’s export potential by offering market research, capability-building programs, and facilitating access to international buyers and markets.
As part of DTI’s Trade and Investments Promotion Group, EMB collaborates with various government and private sector organizations to support export competitiveness and address the challenges faced by Filipino exporters in an increasingly competitive global landscape.
EMB is dedicated to fostering an environment where Filipino products and services thrive internationally. We facilitate access to critical resources, from information on market demands to insights into global trade trends, to help exporters build lasting connections with international buyers and stakeholders.
Task
We support Philippine exports through the following key initiatives:
- Export Assistance and Business Matching.
- EMB serves as a primary resource for Philippine exporters seeking market access. We conduct business-matching activities, trade fair participation, and link Filipino businesses with buyers worldwide.
- Market Research and Export Development.
- To equip exporters with strategic knowledge, EMB conducts research on export trends and market requirements. Our reports cover industry-specific opportunities and emerging markets, helping businesses align their offerings with global demands.
- Capability Building and Training.
- Recognizing the need for skilled exporters, EMB offers training programs on topics such as export regulations, product development, and market entry strategies, empowering companies to compete on an international scale.
- Trade Policy and Advocacy.
- EMB represents the interests of Philippine exporters by actively engaging in policy discussions, both domestically and abroad. We work closely with stakeholders to address trade barriers and promote fair trade practices.
With a committed team and strong partnerships, EMB continually adapts to the evolving needs of exporters, ensuring that Philippine products and services achieve recognition and success in the global market.
The Center for International Trade Expositions and Missions (CITEM) is the export promotions arm of the DTI, specializing in showcasing the best of Philippine products and services to the world. Known for organizing globally acclaimed trade shows, CITEM aims to position the Philippines as a premier sourcing destination by highlighting Filipino craftsmanship, innovation, and quality across a range of industries.
Operating under DTI’s Trade and Investments Promotion Group, CITEM collaborates with local industries and international buyers to build networks that facilitate trade, particularly through exposure at major exhibitions and trade missions.
CITEM champions the Philippines’ export strengths by promoting distinct Filipino products to an international audience. Through events and targeted promotions, we connect local producers with global markets, enhancing the visibility and competitiveness of Philippine goods.
Task
CITEM advances Philippine exports through the following efforts:
- Trade Shows and Expositions.
- We organize key trade events such as Manila FAME, one of the longest-running trade shows in Asia, to showcase Filipino products to global buyers. These platforms highlight diverse sectors, including home, fashion, lifestyle, and food, fostering export growth.
- International Trade Missions.
- CITEM leads trade missions abroad, bringing Filipino exporters to meet potential buyers in major markets. These missions open doors to international partnerships and opportunities, enhancing the visibility of Philippine products.
- Buyer Matching and Market Promotions.
- We tailor initiatives to connect local manufacturers with specific buyers, maximizing trade opportunities. Our buyer-matching services enable meaningful connections between Philippine exporters and international clients, ensuring long-term trade relationships.
- Creative Content Development and Branding.
- CITEM supports exporters in enhancing their branding and market appeal. We develop creative content that highlights the unique attributes of Filipino products, establishing a strong brand image for the Philippines in the international marketplace.
CITEM’s commitment to global outreach ensures that the Philippines’ finest products and services continue to resonate with international buyers, contributing to the nation’s export growth and economic development.
The Foreign Trade Service Corps and Coordinating Office (FTSCCO) is composed of Trade Representatives or Commercial Attaches representing the Commercial Posts of the Department of Trade and Industry (DTI) around the world. The FTSCCO promotes the initiatives of the DTI, specifically on trade and investment promotions, as well as trade policy in key overseas markets.
As part of the DTI’s Trade and Investments Promotion Group, the FTSC works internationally to connect Philippine companies and investors with their counterparts abroad.
The FTSC understands that the lifeblood of international trade relies on credible information and nurtured relations among investors and businesses. We cater to this need by bringing down the physical and cultural borders of doing business across countries. This is facilitated by a wide support network of consulate offices, trade associations, special interest councils, and our government partners in the Philippines and various trading partners worldwide.
Task
We work to advance the Philippines’ trade and investment interests through the following:
- Trade Promotion
- We contribute to increasing and sustaining Philippine exports through business matching, international networking with foreign buyers and trade organizations, and assistance to overseas and local businesses. We spearhead in-store promotions, catalogue shows, and campaigns with foreign businessmen, as well as trade missions to and from the Philippines.
- Investment Promotion
- Global financial institutions have recognized the Philippines as a key investment destination. We join investment missions to introduce foreign investors to Philippine businessmen who are open to capital infusion. Once potential and prospective investors (including Overseas Filipino Investors) are identified, investment advice and counseling are provided to them.
- Commercial Intelligence
- Information is critical in enabling businesses and investors make an informed decision on commercial matters. To meet this end, we conduct market research for specific Philippine products, including commercial, industrial, and economic monitoring to benefit the government, industry players, and small and medium enterprises (SMEs) all over the Philippines.
- Trade Negotiations.
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We recognize that trade policy provides the institutional setting within which trade and investment relations take place. We are the lead source of international business climate issues affecting trade negotiations and trade policy.
We also actively participate in multilateral trade engagements, within the forum of the World Trade Organization (WTO), as well as bilateral and regional Free Trade Agreements (FTAs) to harness trade opportunities for the Philippines’ economic development.
- 28 Key Cities in 20 Countries
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We are present in 28 key cities in 20 countries across the Asia and the Pacific, Middle East, Africa, Europe, and the Americas, supported by a capital-based Coordinating Office. Our international presence ensures continuous monitoring of Philippine trade and investments globally.
The FTSC’s Coordinating Office in Manila manages the flow of information across the various Philippine Trade and Investment Centers.