What is the SSS Special Financing Program?
The SSS Special Financing Program is a lending program of the Social Security System (SSS) designed to address the unavailability of credit facility to the business sector at this time when the Philippine economy is still recovering from economic crisis. This program stimulates business activity by providing term loans to small and medium enterprises at lower than the prevailing short-term market rates. The program has a total fund allocation of P2.5 Billion.
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.
What are the eligible loan purposes?
The loan may be used for the following purposes:
1. Construction/renovation/expansion of building;
2. Rehabilitation and/or reconstruction of damaged building/facilities;
3. Acquisition or upgrading or replacement of machinery and equipment, furniture, fixtures and furnishing;
4. Acquisition of land; and
5. Working Capital.
Who may borrow under the program?
The eligible borrower shall be the following:
* New or existing micro, cottage, small and medium enterprises including registered Barangay Micro Business Enterprises (BMBEs) as well as entities with asset size of not more than P200 Million;
* Enterprises engaged in agri-business, manufacturing, utilities, transportation and communications, commercial production, particularly of food and basic consumer items, and products for export, trading, and service-oriented enterprises; and
* SSS member-employer of good standing
How much is the loanable amount?
The maximum loan under the program shall be P50 million.
How much is the interest rate?
The the interest rate shall be the prevailing SSS pass-on rate to PFI plus spread and subject to review every five years.
What is the term of the loan?
The loan shall be paid in equal monthly, quarterly, or semi-annual payments and shall have a maximum term of fifteen (15) years which may include a maximum of two years grace period on principal payment, if warranted.
What are the acceptable collaterals?
The loan may be secured by any collateral acceptable to the PFIs provided the loan is fully secured.
How much is the prepayment penalty in case of pre-termination of the loan?
No penalty shall be charged in case of prepayment of loan.
Where should a member file his loan application?
The loan application shall be filed with any of the SSS’ accredited PFIs.
What are the accredited participating financial institutions under the program?
The accredited PFIs are:
1. Banco de Oro Unibank
Equitable PCI Bank Tower I
Makati Avenue, Makati City
2. Metro South Cooperative Bank
4718 Eduque Street, Makati City
3. Philippine Veterans Bank
101 V.A. Rufino Street,
Legaspi Village, Makati City
4. Planters Development Bank
314 Buendia Avenue, Makati City
5. Union Bank of the Philippines*
SSS Building, Ayala Avenue, Makati
6. Valiant Rural Bank – Iloilo
41 A Mabini Street, Iloilo City
*active only in housing loans
For more information contact the ILD in Quezon City at telephone number 920-6401 local 5115 or 5118 or the SSS office nearest you.
What are the other conditions under the program?
The SSS Special Financing Program shall not be subject to legal reserve nor to the liquidity floor requirements on borrowings of the Bangko Sentral ng Pilipinas (BSP).
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.
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Looks like a good business financing program so long as the business has the assets to secure the loan.