SME Unified Lending Opportunities for National Growth (SULONG) Program

What is the SULONG Program?

The SME Unified Lending Opportunities for National Growth (SULONG) Program by government financial institutions (GFIs) designed to give small and medium enterprises (SMEs) greater access to short and long term funds. The program has a total fund allocation of P100 Million. The program has a total fund allocation of P100 million.

How can an SSS member avail himself of the loan program?

The loan facility is available thru SSS-accredited participating financial institutions (PFIs)/banks which will on-lend the fund to eligible borrowers for financing.

For what purposes may the loan be used?
The loan may be used for the following purposes:

For Short-term loans:

* Export financing (Export Packing Credit)
* Temporary Working Capital

For Long-term loans:

* Purchase of equipment
* Building construction
* Purchase of lot
* Permanent working capital

Who may borrow under the program?

Eligible borrowers shall be existing private enterprises with the following qualifications:

* enterprises in all industries except trading of imported goods, liquor, cigarettes, and extractive industries like mining or quarrying;
* are at least 60 per cent Filipino owned;
* enterprises with asset size of not more than P100 million, excluding 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 debt-to-equity ratio of not more than 80:20 after financing, or 70:30 if borrower is a franchisee;
* are SSS member-employers of good standing.

How much is the loanable amount?

For short-term loans, the program can fund up to 70% of the value of the Letters of Credit or Purchase Order for export packing, or 70% of the working capital requirement up to P5.0 million.

For long-term loans, the program can fund up to 80% of the incremental cost, up to a maximum of P5.0 million.

How much is the interest rate?

For short-term loans
Rate to PFI : Fixed rate based on PDST-F (MART 1) Rate
Rate to Borrower : at PFIs option

For long-term loans
Rate to PFI : Fixed rate based on prevailing rate of similar tenor but not to exceed 10%
Rate to Borrower : at PFIs option

What is the term of the loan?

For short-term loans, the maximum term shall be 1 year.

For long-term loans, the maximum term shall be 5 years, including a 1 year grace period on principal payment.

What are the acceptable collateral for the loan?

The following are the acceptable collaterals:

For short-term loans

* Registered or unregistered REM/CHM
* Assignment of LC or PO
* Guarantee Cover
* Corporate Guarantee (if franchisee)
* Assignment of Lease Rights (if franchisee)

For long-term loans

* Registered or unregistered REM/CHM
* Corporate Guarantee (if franchisee)
* Assignment of Lease Rights (if franchisee)

What fees must be paid for the processing of the loan?

Evaluation and service fees of P2,000 for every P1 million plus a front-end fee of ? of 1 per cent of the approved loan must be paid. In addition, a commitment fee of 0.125 per cent of the unavailed balance must be paid for long-term loans.
What are the participating government financial institutions under the program?

Interested entrepreneurs may approach the head office or branches of the following GFIs or conduit banks:

1. Development Bank of the Philippines
2. Land Bank of the Philippines
3. National Livelihood Support Fund
4. Philippine Export-Import Credit Agency
5. Quedan and Rural Credit Guarantee Corporation
6. Small Business Guarantee and Finance Corporation
7. SSS accredited rural and thrift banks

This list is subject to change. Please confirm the accreditation of these lending channels with the SSS Institutional Loans Department (ILD).

For more information contact the ILD in Quezon City at telephone numbers 926-1644, and 920-6401 local 5115 or 5114.

Disclaimer: Pinoybisnes.com is not connected in any way with the listed financing programs being offered here. For more information and advice, please call directly the institution involved.