As a government financial institution that supports its key development program, the Development Bank of the Philippines (DBP) offers financial loan assistance to micro and small-sized enterprises under its Small Business Puhunan Loan Program (SBPLP).
Aiming to provide credit for working capital, the SBPLP allows MSME’s with existing current account either with DBP or other banks with a loan amounting to a minimum of P300,000 to a maximum of P1,000,000.
Initially, an MSME may take up a loan amount that is equivalent to the 50 percent of its audited net income. Upon renewal, the loanable amount increases to 60 percent.
The loan is payable through monthly installments of up to one to two years, subject the borrower’s compliance to the Debt Service Coverage.
The interest rates for loans payable within one year is fixed at nine percent per annum while loan payable for two years has a fixed interest rate of 10 percent per annum.
The loan proceeds shall be released in a lump sum to the borrower’s deposit account with DBP. The borrower must issue post-dated checks from a non-DBP account as collateral security.
Borrowers must prepare and submit the following requirements:
There are also specific documentary requirements depending on the type of business ownership.
Sole proprietors must submit a certified true copy of Business Registration under the Department of Trade and Industry and from the local government (Mayor’s Business Permit), aside from the requirements previously mentioned.
For corporation or partnership, the following additional documents are required;
Lastly, cooperatives must also submit the following;