P7-B SSS business loan fund meant for micro to large firms

Barangay micro business enterprises, cooperatives and non-government organizations are among the target clientele of the P7 billion Business Development Loan Facility of the Social Security System, its president said Friday.   "The new SSS lending facilities enable us to offer financial assistance to a wider range of projects and borrowers,” SSS president and chief executive officer Emilio de Quiros Jr. said in a news release.   He also said schools, hospitals and other institutions offering education and training programs, health care and medical services can borrow under the SDLF. Large firms are also eligible.   "Our enhanced loan guidelines are more flexible and responsive to borrowers’ needs. For example, we removed various caps on the loanable amount. It will now depend on the project's actual need and the borrower's credit capacity, provided it will not exceed P500 million," de Quiros explained.   "The interest rate will depend on prevailing market rates. Borrowers have a one-time option to switch from a variable interest rate, which is repriced every six months, to a fixed rate that applies for a period of three years," he added.   The P7 billion fund has earmarks by economic sector: P1 billion for agriculture, fishing and forestry; P2 billion for projects in construction, manufacturing, utilities, mining and quarrying; and P4 billion for the services sector.   De Quiros said SSS will enlist participating financial institutions (PFIs) in the disbursement of the fund to eligible borrowers and that borrowers can pay in monthly, quarterly, semi-annual or annual amoritizations of up to 15 years.   A briefing on the new loan guidelines for PFIs and banks is scheduled at the SSS corporate headquarters in Diliman, Quezon City on March 9. — ELR, GMA News