Business Government

MSME Loans for Philippine Businesses from SBCorp

The Philippine government's Small Business Corporation arm of the Department of Trade and Industry offers new multi-purpose loans targeted specifically for recovering micro, small, and medium enterprises.

What is SBCorp?

The Small Business Corporation or SBC/SBCorp. is a government corporation under the supervision of the Department of Trade and Industry (DTI). It was created with the mission to relentlessly champion the neglected business segments of the country and get them to access the capital needed to grow successfully.

SB Corp’s focus is to provide micro, small and medium enterprises the much needed access to finance to help them grow their businesses. It has several programs for the MSME market: wholesale lending to smaller financial institutions, cooperatives and foundations and retail or direct lending to micro, small and medium enterprises (MSMEs).

https://sbcorp.gov.ph/about-us/corporate-profile/

Programs and Products

Simply put, the SBCorp. is a Philippine government corporation that offers various financing programs for the MSME sector.

While the corporation has already been providing loans to MSMEs since its inception in 1991, it has started to play a crucial role in the restart, and strengthening of the MSME sector. This particularly, amidst the COVID-19 pandemic, and following the onslaught of Typhoon Odette in Visayas and Mindanao.

As the country gears toward rebuilding the economy, it has established new programs that aim to help more MSMEs rebuild and grow.

Current SBCorp Programs open for application as of March 20, 2022.

Odette Enterprise Rehabilitation Financing (ERF) Program

Only businesses affected by Typhoon Odette and located in the following Regions will be eligible to apply for this loan:

  • Region IV-B;
  • Region VI;
  • Region VII;
  • Region VIII;
  • Region X and;
  • Region XIII

Aside from the geographical restriction, this program is open for the following application categories:

  1. Existing Borrowers – MSMEs with existing loan with SB Corp
  2. New Borrowers – MSMEs without existing loans with SB Corp
  3. Tourism MSMEs – May be existing or new borrowers

Because requirements may change as SBCorp sees fit. Its best to read up on the information through their official website. More information on this program here.

TRAVEL

Stands for “Cares for Tourism Rehabilitation and Vitalization of Enterprises and Livelihood.” This program is for MSMEs with an existing business operating for at least one (1) year, and accredited by the Department of Tourism (DOT). More information from SBCorp on this program here.

HEROES

Stands for “Helping the Economy Recover Thru OFW Enterprise Start-ups”. This program is for displaced/repatriated OFWs who want to start their own business in the Philippines. Specifics on this program can be read here.

STAPLES

STAPLES stand for Sari-Sari Stores, Mini-Groceries, Dealers, Distributors and others. This program is for MSMEs with existing business operating for at least one (1) year and that are accredited by Fast-Moving Consumer Goods (FMCG) manufacturers. Furthermore, those eligible include the following:

  • MSMEs in the retail food business sector, which are part of the supply chain of an SBCorp-accredited FMCG food manufacturer – may be a food producer, ‘trader’ or ‘repacker’
  • Retailers and wholesalers of food items of SBCorp-accredited FMCGs such as sari-sari stores, public market stalls, convenience stores, grocery stores, bakeries, micro to small scale food producers or processors, and vendors of farm food produce and seafood
  • As major players in the supply chain of SBCorp-accredited FMCG food manufacturers, their distributors and dealers may qualify as well for this loan product, so long as their asset size fall within the definition of a small or medium.

Specifics on the STAPLES loan program can be read here.

How to Apply?

The application for SBCorp loan programs have been streamlined and made more easy through an online application via a registration portal called the Borrower’s Registration System or BRS. Its quite similar to the system used by the Department of Tourism’s Accreditation Portal, as it walks you through with required documents for submission and gives a run down on any system updates related to your application. It also consolidates all your applications into one system.

The system will also soon integrate the generation of Statement of Account (SOA) and status on billings and loan payments.

Tip: If you are a Corporation applying for an SBC Loan, ensure it is your company’s President that is the registered applicant. Have your updated SEC General Information Sheet (GIS) ready and ensure you have a Secretary’s Certificate empowering the President to apply on behalf of the corporation.

To proceed to apply with any of the above programs head over to SBCorp’s Bayanihan Cares portal at www.bayanihancares.ph (which actually simply redirects you to their Borrower’s Registration System).

What Happens in the Loan Process?

As an existing borrower of the SBCorp. I can attest to the improvements made by SBC to their system. Here’s some items to remember and take as tips as you apply for a government loan:

All online now. Prior to 2022 or 2021, application of the loan was very much manual in the sense that you would need to set an appointment with an SBCorp officer and/or submit your documentary requirements manually or via email. Now, it is all done via the BRS. So simply sign up as the registered business owner/sole proprietor, or have your company President register on behalf of your company.

Documentary requirements submission. Submitting your docs are easier now and more clear. SBC gives leeway on what documents they need — last year’s ITR or Audited FS is admissible especially if nearing the annual ITR submission date (April of every year). One thing they made mandatory is a video submission of the applicant along with narration of certain metrics. It is explained in the registration process and make sure to read the form notes (denoted by the “i” icon, on every form item).

Updates. You will see updated status on the BRS homepage within usually 10 to 15 days from the date of application submission. You have to take into account the number of applications which are understandably high at this time post Odette and with the effects of COVID, and their limited manpower (as its a government office — let’s face the reality of things), which really affect the schedules of loan application review. Regardless, SBC can be contacted via email or calling them at the SBCorp Hotline (02)8651-3333 and 1-800-10-651-3333 (nationwide toll-free).

Fees and Interest Rates. Interest rates will vary per loan program, loan term, and amount borrowed. You will be able to see this in their loan programs information and in the BRS. SBC charges a one time fee on your loans which will vary on amount. Legal fees like documentary stamps will also be deducted. So don’t expect that you will get the full amount you will pay for.

Repayment. SBC usually requires Post Dated Cheques to repay your loan, however depending on the loan program other payment channels like thru GCash are available.

Loan Release. Expect that like any other bank/financing institution, you will need to sign voluminous documents prior to loan release. This is standard for any financing institution government or not. Make sure you bring your valid IDs and the loan applicant is present. Again, expect that you will not be receiving the exact and full amount you applied for because of one-time fees and legal/tax fees.

I wish you all the best in your application and hope all our businesses pull through in the coming months! To get in touch with SB Corp directly you can contact them through the following channels

Small Business Corporation (aka SBC or SBCorp.)

  • Official Facebook Page: https://www.facebook.com/BayanihanCARES/
  • Official Email: sbcorporation@sbcorp.gov.ph
  • Official Website: https://sbcorp.gov.ph/
  • SBCorp Hotline: (02)8651-3333 and 1-800-10-651-3333 (nationwide toll-free)
  • Head Office: 17th & 18th Floors, 139 Corporate Center, Valero St., Salcedo Village, Makati City 1227 Philippines

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