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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.

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PROGRAM PRESENTATION

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  1. PROGRAM PRESENTATION July 2007 version

  2. 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

  3. 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

  4. Bankable SMEs Near Bankable SMEs Pre-Bankable but Viable MSMEs Graduating Micros Start-Up Micros SBC MSME Credit Delivery Strategy Global Competitiveness With MFI capability building support With enterprise registration support Pre-Enterprise Micros Credit Guarantees for SMEs Wholesale Micro-Finance Direct Lending for MSMEs Wholesale Lending for SMEs

  5. The SBC Direct Lending Program Minimum Borrower Qualifications 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)

  6. The SBC Direct Lending Program Minimum Borrower Qualifications 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 a BRR SCORE of “5” or better

  7. Borrower Risk Rating (BRR) System What is it about? • The BRR System is an instrument used to help control credit risks; it helps SBC to identify and mitigate areas of risk involved in extending financing to SME clients. • It is a risk rating model that focuses on four areas of concern in an enterprise: Cash (financials) - 50 pts. Administration - 20 Market - 15 Production - 15 100 pts. • For an enterprise to qualify, it should at least get a score of 55 points or BRR 5. • This system is being implemented by SBC to have a risk-based lending approach in SME financing.

  8. SBGFC’s Direct Lending Facilities • Fixed Asset Financing • Working Capital Financing • Three Facilities: • Transactional Loan • Soft Investment Loan • Micro Working Capital Loan • Financing for Start-up Enterprises

  9. Three Facilities under Working Capital Financing:

  10. Working Capital Financing Transactional Loan

  11. Transactional WC Loan

  12. Amortized Working Capital Loan Micro Working Capital Loan 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 • 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

  13. Amortized Working Capital Loans Lending Features

  14. Amortized Working Capital Loans Lending Features

  15. Service Fees Interest Rates (for 2nd Quarter 2007) Amortized Term Loans Minimum – 9.8% Maximum – 17.0% Credit Lines * Minimum – 9.6% Maximum – 13.0% *Inclusive of 1% account management fee • Interest rate setting is based on: • Borrower Risk Rating • Collateral cover • Term of loan

  16. Service Fees Other 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

  17. 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

  18. SBC Offices HEAD OFFICE 17th & 18th Floors 139 Corporate Center 139 Valero St. Salcedo Village, Makati City Tel. No. : 751-1888 Fax No. : 894-1677 or 8135726 Website : www.sbgfc.org.ph LUZON OFFICES LA UNION DESK OFFICE La Union Trade Center City Hall Complex Quezon Ave. San Fernando City, La Union Telefax No.: (072) 242-7647 BICOL DESK OFFICE FEDMACSI Bldg., Panganiban Drive Naga City Telefax No.: (054) 473-9975 ISABELA DESK OFFICE Rm. 4 2nd Floor OH Commercial Bldg. San Fermin, Cauayan City Tel. No. : (078) 652-1964

  19. SBC Offices VISAYAS OFFICES MINDANAO OFFICES VISAYAS AREA OFFICE Unit 802-B Keppel Center Ayala, Cebu City Tel. No. : (032) 232 – 1200 Fax No. : (032) 234 – 4500 MINDANAO AREA OFFICE 7th Floor Unit 76 Landco Corporate Center JP Laurel Ave. Bajada, Davao City Tel. No. : (082) 221 – 1488 Fax No. : (082) 221 – 0858 ILOILO DESK OFFICE c/o DTI Region 6 Mezzanine Floor DTI Bldg., JM Basa cor. Peralta St., Iloilo City Tel. No. : (033) 335-0060 Fax No. : (033) 335-0083 GENERAL SANTOS DESK OFFICE c/o DTI-General Santos City Osmena South St., Gen. Santos City Tel. No. : (083) 552-8385 Fax No. : (083) 553-1032 TACLOBAN DESK OFFICE c/o DTI-Region 8 Nacida Bldg. Government Center, Pawing Palo, Leyte Telefax No. : (053) 323-8385 CAGAYAN DE ORO DESK OFFICE c/o DTI Region 10 Corrales cor. Luna St. Cagayan de Oro City Tel. No. : (088) 231-5703

  20. Grow Your Business !! with

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