Small businesses have another opportunity to gain access to financial services, with state-owned Small Business Corporation (SBCorp) offering so-called RISE UP loans for entrepreneurs who have yet to recover from the effects of the COVID-19 pandemic.
The “Resilient, Innovative and Sustainable Enterprises, Unleash your Powers” loan program aims to sustain the gains of Micro, Small and Medium Enterprises (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 program caters to multi-sectoral MSMEs, including existing SBCorp borrowers, through three financing products: the Micro Multi-Purpose Loan for multi-sectoral microenterprises, the SME Multi-Purpose Loan Suki for existing borrowers of SBCorp in good standing with at least six months repayment track record, and the SME Multi-Purpose Loan First Timers for multi-sectoral SMEs.
Micro entrepreneurs with a track record of at least one year are allowed to borrow up to P300,000.00 payable in three (3) years, including a grade period on principal ranging from three (3) to 12 months, with interest rate set at 12% per annum on diminishing balance.
The loan amount will be based on 20% of the existing business assets and could be raised to 50% of the value of existing assets in case of fixed-asset acquisition but not to exceed 80% of the purchase price.
Requirements include a government-issued ID, barangay certification for loans of not more than P100,000.00 or a BMBE Certificate or Mayor’s Permit for loans of more than P100,000, photos and video of business operations and assets, and corporate documents if applicable.
On the other hand, SME first-time borrowers with a track record of at least three years have to submit a BIR-filed Financial Statement for the prior year reflecting positive net income and BIR-filed FS for earlier two years and other proof of sales and/or assets, aside from the other requirements.
With a maximum of P2 million, the loan amount will be based on 15% of prior year sales based on the BIR-filed FS, with the loan payable monthly up to three years, inclusive of grace period ranging from three to 12 months.
For first-time borrowers in business for at least two (2) years, all they have to do is go to https://brs.sbcorp.ph and log in or create an account; click “Apply for a Loan”; choose RISE UP Multi-Purpose Loan among the available loan programs in the system; click “First-Time Borrower” in the pop-up message; accomplish the registration form and upload the documentary requirements; and click “Submit” to finish the application process.
The MSME Multi-Purpose Suki Loan is for existing borrowers of SBCorp who are automatically qualified to avail of up to P5 million for clean loans and up to P10 million for Real Estate Mortgage-secured loans based on zonal value of the land only.
The loan amount shall be based on the re-availment of the latest approved loan minus outstanding balance and may be up to 15% of prior-year annual sales.
It could be raised to 50% of the value of existing assets in case of fixed-asset acquisition but not to exceed 80% of the purchase price.
The loan shall be payable monthly up to five years inclusive of grace period ranging from three to 12 months, with the interest rate from 8% to 12% per annum based on diminishing balance.
The borrower should submit proof of sales including bank statements, proof of value of asset in case of fixed asset acquisition, in-house Financial Statement (FS), BIR-filed FS for loans exceeding P3 million, and proof of ownership and of government valuation of real estate asset that will secure the loan.
Collateral of real estate mortgage will be required for loans of more than P5 million.