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FSSI was established on August 11, 1995

following a successful debt for development


agreement between the Government of
the Philippines and the Swiss Confederation. The latter cancelled the Philippines
outstanding export credit debts amounting
to 42 million Swiss Francs and a counterpart
fund, equivalent to 50% of the cancelled
debts, was put up as an endowment to
finance sustainable development projects.
The FSSI endowment is a public trust. FSSI
seeks to apply innovative fund utilization
that will maximize both social and financial
returns through social entrepreneurship, at
the same time, ensuring continuing growth
for the institution, equitable development
and environmental sustainability.

Foundation for a Sustainable Society


46E Eugenio Lopez St. cor. Samar Ave.
South Triangle, Quezon City
Telefax: +632 928 8671
Phone: +632 9288 8422
+632 4114702 to 03
www.fssi.com.ph

Social Enterprise
Investment Fund
The Foundation for a Sustainable
Society (FSSI) is committed to provide
social investments as a contribution
to sustaining local economies and
eco-systems. We aim to facilitate social
investments that lead to triple bottom lines in
terms of economic viability, ecological soundness
and social equity. We nurture partnerships that help empower
the poor to become productive members of society and as
stewards of our natural resources.
We support social enterprises that undertake development,
production, processing and marketing of commodities by
the marginalized social sectors. We believe that growing
social enterprises requires the support of both state and
non-state stakeholders. It also entails capacity building
through awareness building and education. And so we support
alliances among social enterprises and civil society, as well
as with national and local government agencies, and the rest
of the business sector that are inclined to working with social
enterprises.
The Social Enterprise Investment Fund (SEIF) is aimed at
primary cooperatives, cooperative federations, communitybased organizations, alliances/network of civil society
organizations, private enterprises, and community financial
institutions.
We also support initiatives that are part of local convergences
on the following:
Local Economy Development (LED) partnership;
Cluster of municipalities sharing an ecosystem;
Integrated Area Development (IAD) cluster;
Sector- or industry-based formations;
Marginalized community, such as a community of
Indigenous people or upland dwellers.
Our Social Enterprise Investment Fund consists of project
loans, asset management products, equity contribution and
grants.

Project Criteria

Triple Bottom Line or the


interface of the economic,
social and environmental
serves as FSSIs conceptual
guide in project development,
appraisal, approval, monitoring
and evaluation.
We support partnerships that
promote the Triple Bottom Line
through social enterprise development, community governance
and advocacy.

Eligibilities

FSSI welcomes application for partnership with cooperatives,


cooperative federations, non-government organizations, peoples
organizations, micro, small and medium enterprises registered
as stock corporations, partnership or single proprietorship,
cooperative banks and rural banks.

Application

Application packs for Project Loans, Asset Management


Products, and Grants are downloadable at www.fssi.com.ph.
Application may be sent by post mail or e-mail to FSSI.

Appraisal

Once a proposal has been accepted, FSSI shall assign a staff


to start appraising your project. The process consists of desk
review, field visit, and meeting with the proponent. Additional
information may be requested during the appraisal period.

Approval

The appraisal report is reviewed by FSSIs Development Services


Unit en banc and presented to pertinent bodies for review and
final approval. A partnership agreement will then be forged by
the proponent and FSSI after a notice of approval has been sent
to the proponent.

Loans
FSSI believes in providing opportunities to communities to
improve peoples means of living in a sustainable manner by
scaling-up social enterprises.
FSSI extends project loans to enhance capacity of social
enterprises to meet their increasing demand for financial
investment that is necessary to help ensure growth and
sustainability.
Our Social Enterprise Investment Fund provides Loans to the
following organizations:
a. Cooperatives;
b. Cooperative federations;
c. Small and Medium enterprises (SMEs) registered either
as stock corporation, partnership or single proprietorship;
d. Community Financial Institutions that include cooperatives, cooperative federations, cooperative banks, nongovernment organizations (NGOs), and rural banks that are
providing financial services in marginalized communities;
e. Non-government Organizations(NGOs); and,
f. Peoples Organizations.
Project loans are provided for a specific business proposal or
business activity. The general terms are classified as either
term loan or credit line.
Term loan a type of loan released in lump sum or in
tranches and payable in fixed number of equal instalments
on principal plus interest.
Credit line a type of loan wherein a
borrower can draw from a maximum amount
of credit at any time during the validity period. The amount of credit drawn is payable
in fixed number of instalment(s).
Loan interest rate varies based on type of loan
and is generally set lower than most commercial
rates.

Loan Packages
Enterprise Loan - is for the acquisition of additional
capital assets and for increasing working capital of an
enterprise engaged in commodity production, processing
and marketing. Loan amount is up to Php 20M. Maturity
is one year to five years.
Start-up Enterprise Loan is intended to support upscaling of a newly established enterprise that promises
to contribute to improving participation of a target social
sector in a local value chain. Loan amount is from
Php 500,000.00 to Php3M. Loan maturity is
up to five years.
Bridge Financing - is a shortterm loan for emergency financing
requirement of micro and small
enterprises. Loan amount is up to
Php 500,000.00 and maturity per
drawdown is up to one year.
Business Development
Services (BDS) Loan
is a soft loan that is extended to help
finance other enterprise investments
such as research and development,
patenting, market development, organizational
development, skills and competency enhancement.
Community Financial Institutions (CFI) Commodity
Production Loan is a loan extended to CFIs for the
purpose of extending loans to individual borrowers
engaged in production, processing and trading of
agricultural and fishery products. Maximum loan amount
is Php 30M. Maturity is one to three years.
Community Financial Institution (CFI)
Microfinance Loan is a loan extended to a CFI
to help expand outreach of its microfinance service
especially to the marginalized sector that have less
access to financial services. Maximum loan amount is
Php 30M. Maturity is from one year to three years.

Asset Management Products


FSSIs Asset Management
Products (AMPs) are specially
packaged for secondary and tertiary
cooperatives that provide financing
assistance to their members and for
cooperative banks and rural banks which subscribe
to a triple bottom line investment. We believe in sowing the
seeds of social enterprises to reach as many beneficiaries
as possible. The AMPs aim to help our partners enhance
their financial sustainability while contributing in nurturing
other social enterprises and increasing local economic
activities in various locations.
The placement of investments in formal financial
institutions and to tertiary and secondary cooperative
federations aims to promote partnership on the basis of
strategic objectives in line with local economy development.
Together with FSSI, the partner institutions may form a
local investment consortium for particular Local Economy
Development (LED) areas.
AMPs consist of CFI Wholesale Loan, Developmental
Deposit, Guarantee and Fund Syndication.
Community Financial Institution (CFI) Wholesale loan
- is extended to a secondary/tertiary cooperative federation
for relending to their member cooperatives. Recipients of
the CFI Wholesale loan should demonstrate
sound financial fundamentals with a level
of risk that may be considered low to very
low. Maximum credit line amount is set
at 5% of FSSIs investible funds. Validity
and maturity per drawdown is up to
three years.

Developmental Deposit - aims to strengthen the


capacity of Community Financial Institutions (CFIs) in
mobilizing savings and increasing their capacity to
provide credit to poor communities. Recipients are CFIs,
specifically, cooperative banks, cooperative federations,
rural banks and thrift banks that demonstrate sound
financial fundamentals and with a level of risk that may
be considered very low. Deposit placement is from one
year to three years at a negotiated interest rate.
Guarantee - aims to help CFIs in providing loans to
micro and small enterprises without insufficient funds or
collateral. Under a specified arrangement, the CFI manages the guarantee fund and uses its earnings to cover
the risk of the unsecured loan. The terms of guarantee is
renegotiated and renewed annually.

Equity
FSSI may contribute equity in an enterprise representing
common or preferred shares. Equity investment may be
considered a form of leverage intervention to support a
particular project that may have a strategic role and contribution in promoting social enterprises in a given sector
or geographical area.

Fund Syndication
Fund syndication is a pooling of funds by a group of
donors or investors who work together to help fund a
project or a business venture. FSSI participation in fund
syndication may be in the form of grant, equity, guarantee
or loan, or a combination of these financing services.

Grants
Grant assistance is provided to
Civil Society Organizations (CSOs)
and CSO-based social enterprises
that are involved in initiatives towards poverty reduction,
promotion of social justice and improvement in economic
welfare of the poor and marginalized sectors.
The facility has three windows, namely, start-up enterprise
grant, capacity building, and advocacy grant.

Start-up Enterprise Grant


Start-up Enterprise Grant is intended to support CSO
initiatives in setting-up social enterprises owned or partly
owned by marginalized social sectors in selected focus
areas. The grant can be used to partially cover the initial
capital assets acquisition and working capital requirement
of the enterprise. Maximum grant amount is Php
1,500,000.00.

Capacity Building Grant


Capacity Building Grant is intended to support enhancement
of effectiveness and efficiency of social enterprises that
are fully or partly owned by marginalized social sectors and
their host communities. Maximum grant amount is
Php 500,000.00. The grant can be used to partially cover
the cost of the following activities:
- business planning and management
- research and Development
- market development
- organizational development
- competency enhancement at the enterprise level
- community skills training

Advocacy Grant
Advocacy Grant is intended to support advocacy projects
working on the following themes:









- Social entrepreneurship
- Climate change adaptation and mitigation
- Sustainable production
- Alternative/renewable energy
- Value chain development in specific
industry or sector
- Gender mainstreaming in enterprise and
value chain
- Patronage of products and services of
social enterprises

Advocacy grants maybe extended to both national and local


initiatives.
Maximum grant for advocacy is Php 300,000.00

Eligibilities for Start-up Enterprise &


Capacity Building Grants
- Cooperatives located in focus areas
- Non-government organization located in focus areas
- Peoples organizations located in focus areas

Eligibilities for Advocacy Grant


- Non-government organizations
- Peoples organizations
- Academe