SSS BUSINESS DEVELOPMENT LOAN FACILITY shared by Leader Adelwisa O. Carandang

Sir,

I 'am resending the loan guidelines.

Adelwisa O. Carandang

SSS BOP

SSS BUSINESS DEVELOPMENT LOAN FACILITY

A. OBJECTIVES

• To provide long-term loan assistance for the development of facilities and establishment of institutions that provide quality education or other academic training programs and affordable medical or health care related service to the general population and to SSS members and their dependents

• To complement the national government's program of attaining a better distribution of educational and hospital facilities throughout the country that will be more responsive to the needs of the particular localities and their inhabitants

• To support the thrust towards the enhancement of the overall level of productivity in the economy through the development of a larger pool of professionals and skilled workers and empowerment of a healthy and strong workforce that promotes industrial peace

B. FUND ALLOCATION

The total funding allocation shall be P7.0 Billion

C. MECHANICS

To provide wider access to the funds and to reach as many beneficiaries as possible, the SSS shall make the funds available through the conduit banks or participating financial institutions (PFIs) for on-lending to eligible borrowers/end-users

D. ELIGIBLE BORROWERS

• New or existing private medical institutions licensed by the Department of Health either as primary, secondary or tertiary hospital including institutions for the aged or infirmed individuals

• New or existing private educational institutions (toddler/day care learning center, preparatory/elementary/secondary schools, colleges/universities, schools for special education (SPED), vocational/technical institutions) duly licensed by the Department of Education (DepEd), Commission on Higher Education (CHED), Technical Education and Skills Development Authority (TESDA), and Department of Social Welfare and Development (DSWD)

• SSS member-employer of good-standing

• Single proprietorship, partnership, or corporation, at least 60% Filipino-owned

• Have proven track record of profitability for existing hospitals/schools

E. LOAN PURPOSES

• Site development

• Enhancement or modernization of existing facilities

• Construction or repair of building and other civil works

• Acquisition or repair/upgrading of machinery and equipment including furnishings            and other educational materials

• Acquisition of existing facilities

• Acquisition of land (up to 50% of cost)

• Working capital

F. AMOUNT OF LOAN

The loan amount shall be the lowest of the following but not to exceed a maximum of P500.0 M per borrower:

• Amount of loan being applied

• Actual need of the borrower 

• Loan value of the assigned collateral or securities

G. INTEREST RATE

The interest rate shall be variable or fixed, based on the prevailing SSS pass-on rate to PFIs plus PFI's spread

H. REPAYMENT TERM

The loan shall be payable monthly, quarterly, semi-annually or annually and shall have a maximum term of fifteen (15) years with a maximum three (3)-year grace period on principal payment.

The loan with a term of more than fifteen (15) years and a grace period of more than three (3) years may be allowed for loans to be used to finance projects of exceptional case that require longer tenor, provided, the term will not exceed         twenty-five (25) years.

Balloon payment on principal may be allowed upon maturity of the loan on a case to case basis

I. SECURITY/COLLATERAL

The loan shall be secured by any collateral acceptable both to the PFIs and the SSS

J. PREPAYMENT PENALTY

No penalty/pre-termination fee shall be charged in case of pre-payment of loan