In connection to the Policy Advisory entitled "Implementing Guidelines for the Regular CARES Program (for small- and medium-sized firms)" released last August 28, 2020, the Small Business Corporation (S.B. Corp.) recently provided additional information in the loan application process for the Regular CARES Program.
In lieu of the Online Loan Application System (which is currently being developed) and in compliance to COVID-19 safety protocols, the S.B. Corp. reminds all borrowers to submit their loan application to the contact person in the appropriate S.B. Corp. Regional Lending Office through e-mail. The list of the contact persons can be found in the Directory below. Borrowers are also highly advised to keep the original copies of their loan application documents as these shall be required during the loan release processing.
The standard processing time for Regular CARES loans is 20 working days starting from the submission date of loan application.
Meanwhile, for convenience, below are the salient features of the Program:
- Eligible borrowers:
- 100% Filipino-owned enterprises;
- Enterprises with asset size, excluding land, of P3M to P100M;
- Operating for at least one (1) year prior to March 16, 2020; and
- Affected by the imposition of Community Quarantine measures.
- Existing SME borrowers of S.B. Corp. shall be given priority but without prejudice to new SME borrowers. Loans of existing borrowers must be current in status prior to the declaration of the Community Quarantine.
- Loan purpose: Working capital replacement
- Loanable amount: From P500,000.00 up to P5M
- Interest rate: 0%
- Fees and charges: Either 6% for loans with term, exclusive of the grace period, of up to one (1) year or 8% for loans with term, exclusive of the grace period, of between one (1) to two (2) years.
- Loan term:
- Grace period of six (6) months.
- Payable up to two (2) years (exclusive of the grace period), to be amortized monthly.
- Mode of loan release:
- Either on lump sum or staggered (i.e. two  tranches) basis. A loan utilization report shall be required prior to the second loan release.
- Loan proceeds shall be released through bank transfer via LandBank of the Philippines We-Access. Loan release through checks shall no longer be allowed.
- Mode of loan collection: Issuance of Post-Dated Check (PDC)
- Collateral requirement: The asset that will be financed shall serve as the loan collateral, which may include assignment of inventories and receivables.
More details, including the full list of documentary requirements, can be accessed from the Implementing Guidelines and Loan Application Materials below: