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Thursday, April 06, 2017

4 Types of SSS Business Loans Members Can Apply

The Business Development Loan Facility is a lending facility of the Social Security System (SSS) designed to contribute to the nation's economic growth and development by providing financial assistance to the business sector for the purpose of increasing productivity and enhancing potential earnings through expansion, diversification and other business development projects.  It also aims to support the government's program of invigorating economic activity and providing more employment opportunities.



(Watch:SSS Business Loan Development Facility)

As a member of Social Security System (SSS) you are not just limited to housing and salary loan. Because SSS has several loan programs for those members who want to start a business and those who have a business and want to expand it. 

In SSS business loan, you can avail Business Loan Development Facility, Social Development Loan, ASENSO Loan Program and Fixed-Term Credit Facility Loan.


Business Development Loan Facility

The Business Development Loan Facility is a lending facility of the Social Security System (SSS) designed to contribute to the nation's economic growth and development by providing financial assistance to the business sector for the purpose of increasing productivity and enhancing potential earnings through expansion, diversification and other business development projects.

It also aims to support the government's program of invigorating economic activity and providing more employment opportunities.


(Watch:Panayam kay Adelwisa O. Carandang, kaugnay sa SSS Business and Social Loan Programs)




Eligible Borrowers
The eligible borrowers shall be new or existing private industries and enterprises including registered Barangay Micro Business Enterprises (BMBEs) with the following qualifications:



1. Single proprietorship, Partnership or Corporation, as least 60% Filipino owned, including cooperatives and non-governmental organizations;



2. Engaged in any business activities allowed/registered under the Philippine laws such as but not limited to the following: 
  • Agri-Business - contract growing, aquaculture
  • Food Processing - rice mill, oil mill, feed mill, meat processing, etc.;
  • Manufacturing - garment, ceramics, textile, furniture, construction materials
  • Commercial Production - particularly of food and basic consumer items and products for export
  • Service-Oriented Enterprises - transportation, warehousing, utilities, communications, etc.
  • Tourism Related Projects - hotel, resort, theme park, etc.
  • Real Estate Development Projects - industrial estate development
  • Sustainable Energy Projects - construction of green building, waste management system, sewerage treatment plant, etc.
  • Extractive Industries - mining, quarrying, dredging, oil and gas extraction projects
  • Forest Development Projects - plantation, reforestation, regeneration and other forest-related projects
  • Trading Business
  • Leasing/Lending Business
3. Have proven track record of profitability for existing enterprises; provided that if the company incurred losses in any year during the past three (3) years, the average income of past two (2) or three (3) years should be positive. The three (3) year track record of profitability may be waived for enterprises which started operations during the last five (5) years. In any case, the borrower should be able to justify projection of viable operations with debt-equity ratio not exceeding 3:1 after financing; and 

4. Must be an SSS member-employer in good standing.

The borrower is also subject to other criteria and policies which the Social Security Commission may impose from time to time.

Loan Purposes

The loan may be used for the following purposes:
  • Site development;
  • Enhancement or modernization of existing facilities;
  • Construction or repair of building and other civil works;
  • Acquisition or repair/upgrading of machinery and equipment including furnishings;
  • Acquisition of existing facilities;
  • Acquisition of land (up to 50% of the acquisition cost); or
  • Working capital
Social Development Loan Facility

The Social Development Loan Facility is a lending facility of the Social Security System (SSS) designed to provide long-term loan assistance for the development of facilities and establishments of institutions that provides quality education or other academic training programs and affordable medical or health care related services to the general population and to SSS members and their dependents.

It also aims to support the program of the national government to attain a better distribution of educational and hospital facilities throughout the country that will be more responsive to the needs of the particular localities and their inhabitants.

Eligible Borrowers

1. New or existing private medical institutions licensed by the Department of Health (DOH) either as primary, secondary and tertiary hospital including institutions for the aged or infirmed individuals.

2. New or existing private educational institutions, i.e. toddler/day care learning center, preparatory/elementary/secondary schools, collegiate/university level, school for special educations (SPED) as well as vocational and technical institutes which are duly licensed by the Department of Education (DepEd), Technical Education and Skills Development Authority (TESDA), Commission on Higher Education (CHED) and Department of Social Welfare and Development (DSWD).

3. At least 60% Filipino-owned corporation/partnership/single entity

4. Have proven track record of profitability for existing enterprises; provided that if the company incurred losses in any year during the past three (3) years, the average income of past two (2) or three (3) years should be positive. The three (3) year track record of profitability may be waived for enterprises which started operations during the last five (5) years. In any case, the borrower should be able to justify projection of viable operations with debt-equity ratio not exceeding 3:1 after financing; and

5. Must be an SSS member-employer in good standing. 

6. The borrower is also subject to other criteria and policies which the Social Security Commission may impose from time to time.

Loan Purposes

The loan may be used for the following purposes:

  • Site development;
  • Enhancement or modernization of existing facilities;
  • Construction or repair of building and other civil works;
  • Acquisition or repair/upgrading of machinery and equipment including furnishings and other educational materials;
  • Acquisition of existing facilities;
  • Acquisition of land (up to 50% of the acquisition cost); or
  • Working capital
Where to avail Business Development Loan and Social Development Loan

SSS member-employers may avail of the loan facility through the SSS accredited participating financial institutions (PFIs) which will on-lend the fund to eligible borrowers for financing.

The loan application shall be filed with any of the following SSS' accredited participating financial institutions (PFIs):

BDO Unibank, Inc.
6/F Equitable PCI Bank Tower 1, Makati City
Contact Person:
Ms. Vivian D. de Chavez - Senior Manager
Tel. Nos. 878-4567; 878-4570 (fax)

Development Bank of the Philippines
Sen Gil Puyat Ave., Makati City
Contact Persons:
Mr. Jose Pepito A. Yusingbo - Manager and Officer-in-Charge,SME Unit
Ms. Leonore L. Tianco
Tel. Nos. 812-9932; 818-9511 loc. 2305

Land Bank of the Philippines
Land Bank Plaza, 1598 M. H. del Pilar, Malate, Manila
Contact Person:
Ms. Lina Soriano - Program Officer
Tel. Nos. 405-7640; 522-2200; 551-2200; 405-7198

Philippine National Bank
3/F PNB Financial Center
Pres. Diosdado Macapagal Blvd. Pasay City
Contact Person:
Ms. Katrina Jane O. Mayoca - Asst. Manager 2, Financial Institutions Division
Tel. Nos. 573-4661; 526-3131 loc. 4661

Philippine Veterans Bank
101 V.A. Rufino St. Legaspi Village, Makati City
Contact Persons:
Mr. Plato C. Tirol - Officer-in-Charge, Investment Banking Division
Ms. Karina P. Rodriguez - Account Officer
Mr. Edward S. Lectura - Account Analyst
Tel. Nos. 846-5933 loc. 2101, 2105 and 2118

Planters Development Bank
314 Buendia Ave., Makati City
Contact Person:
Ms. Quennie Medrano - Senior Manager
Tel. No. 884-7600 loc. 5183

LOANABLE AMOUNT
(Business Development Loan and Social Development Loan)

The maximum loanable amount shall be the lowest of the following, provided the borrower's debt-equity ratio after financing shall not exceed 3:1 and that its total loan with the SSS shall not be more than five percent (5%) of the SSS Investment Reserve fund (IRF):

1. Amount of loan being applied;

2. Actual need of the borrower (total project cost)

3. Loan value of the assigned collateral or securities; or

4. Maximum of P500.0 million per borrower.

INTEREST RATE

The interest rate of the loan may be variable or fixed based on the prevailing SSS pass-on rate to PFI plus PFI's spread. The prevailing interest rates shall be reviewed monthly.

TERM OF THE LOAN

  • The loan shall be payable monthly, quarterly, semi-annually or annually based on the PFI's approved amortization schedule and shall have a maximum term of fifteen (15) years with a three (3) year grace period on principal payment.

  • The loan with a term of more than fifteen (15) years and a grace period of more than three (3) years may be allowed for loans to be used to finance projects in extractive industries and forest development related projects including those with exceptional cases that require longer tenor, provided, the term will not exceed twenty-five (25) years.
ACCEPTABLE COLLATERALS

The loan shall be secured by any collateral acceptable both to the PFIs and the SSS provided the loan is fully secured.

PREPAYMENT PENALTY

No pre-termination fee/penalty shall be charged in case of pre-payment of the loan.

(Watch:[Good Morning Boss] Usapang SSS: SSS business and social development loans facility)


Fixed-Term Credit Facility

The Fixed-Term Credit Facility is a lending facility of the Social Security System (SSS) designed to provide sustainable fixed-term credit facility to SSS-accredited participating financial institutions (PFIs) for re-lending to eligible private enterprises in order to improve and hasten their operations for a more globally competitive market.

It also aims to enhance the facilitation and flow of credit for the business sector to support the organization and expansion as well as rehabilitation of business operation.

Eligible Borrowers

The eligible borrowers/end-user must be an SSS member-employer in good standing.

The borrower is also subject to other criteria and policies which the Social Security Commission may impose from time to time.

Loan Purposes

The loan may be used for any purposes provided approved by the PFI.

How to Apply

The PFI shall submit a letter of intent to avail of the loan together with the Term Sheet.

LOANABLE AMOUNT

The loanable amount is the sub-limit of the omnibus credit line (OCL) but should not exceed 80% of approved OCL of PFIs (net of availments).

INTEREST RATE

The interest rate of the loan shall be the prevailing fixed rate.

TERM OF THE LOAN

The loan shall be payable quarterly, semi-annually or annually and shall have a minimum term of five (5) years up to fifteen (15) years inclusive of a maximum five (5) years grace period on principal payment.

The loan with a term of more than fifteen (15) years up to twenty-five (25) may be allowed for special projects.

ACCEPTABLE COLLATERALS

The loan shall be secured by any collateral acceptable both to the PFIs and SSS or subject to the following:


PFIsAcceptable Collateral/sLoan Amount
SSS Depository BanksPartially SecuredUp to Php1.5 B or 80% of OCL?s Sub-Limit
Fully SecuredUp to the extent of the balance of the approved OCL
UBs/KBs and its affiliated leasing companies and Thrift BanksFully SecuredUp to the extent of the balance of the approved OCL

PRE-TERMINATION FEE

A pre-termination fee of one-half of one percent (½ of 1%) percent of the loan shall be charged in case of pre-payment of loan within the first five (5) years.

MANNER OF AVAILMENT/RELEASES

The manner of availment/releases shall be in batches of not less than Php10.0 million. The SSS shall release the loan through Real-time Gross Settlement (RTGS) or through direct transfer of the fund to the PFis depository bank which should be an SSS depository bank.

PENALTY FEE

Any principal and/or interest not paid on due date shall bear an additional interest at the rate of one and one-half (1½%) percent per month computed from the due date until fully paid.


Access of Small Enterprises to Sound Lending Opportunities (ASENSO)

The Access of Small Enterprises to Sound Lending Opportunities (ASENSO) formerly SULONG Program by the government financial institutions (GFIs) is designed to give small and medium enterprises (SMEs) greater access to short and long-term funds by simplifying and standardizing the lending procedures.

Eligible Borrowers

  • All industries except trading of imported goods, liquor and cigarettes and extractive industries like mining, quarrying, etc.
  • SSS member-employer in good standing
  • Single proprietorship, partnership or corporation, at least 60% Filipino owned
  • With asset size of not more than P100.0 million excluding the value of the land
  • Have positive income for the previous year. If the previous year’s income is negative, the average income of the past 2 or 3 years should be positive
  • Have a Debt-Equity Ratio at most of 80:20 after the loan or 70:30, if franchisee
Loan Purposes
1. For Short-Term Loan:

  • Export Financing
  • Credit Line or as temporary working capital

2. For Long-Term Loan:

  • Purchase of equipment
  • Building construction
  • Purchase of lot
  • Purchase of inventories or as a permanent working capital
LOANABLE AMOUNT

For Short-Term Loan

The loanable amount shall be 70% of the value of the Letter of Credit (LC)/Purchase Order (PO) for export financing or 70% of the working capital requirement, up to a maximum of Php5.0 million.

For Long Term Loan

The Loanable amount shall be 80% of the incremental project cost, up to a maximum of Php5.0 million.

INTEREST RATE

The interest rate of the loan may be variable or fixed based on the prevailing SSS pass-on rate to PFI plus PFI's spread. The prevailing interest rates shall be reviewed monthly.

TERM OF THE LOAN

For Short-Term Loan


The loan shall have a maximum term of one (1) year payable monthly.
For Long Term Loan

The loan shall have a maximum term of five (5) years, inclusive of a maximum one (1)-year grace period on principal monthly amortization.

ACCEPTABLE COLLATERALS

For Short-Term Loan

  • Registered/Unregistered Real Estate Mortgage (REM)/Chattel Mortgage (CM)
  • Assignment of LC/PO (for Export financing)
  • Guarantee Cover
  • Corporate Guarantee (for Credit Line, if franchisee)
  • Assignment of Lease Rights (for Credit Line, if franchisee)

For Long Term Loan
  • Registered/Unregistered REM/CM
  • Corporate Guarantee (if franchisee)
  • Assignment of Lease Rights (if franchisee) 
The loan shall be secured by any collateral acceptable both to the PFIs and the SSS provided the loan is fully secured.

PREPAYMENT PENALTY

No pre-termination fee/penalty shall be charged in case of pre-payment of the loan.

For more information, please visit the Housing and Business Loans Department, 5th Floor, SSS Main Building, East Ave., Diliman Quezon City or you may call telephone number 920-6401 local 5115 or 5129, or e-mail at desilvamt@sss.gov.ph or carandangao@sss.gov.ph




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