College of the Holy Spirit of Tarlac

San Sebastian, Tarlac City

S. Y. 2017-2018

Submitted to :
Ms. Judith Tomas

Submitted by:
Duenas, Ma. Patricia Veronica
Sagun, Erica Grace
Bautista, April Ashlee
Facunla, Benj Allana
 Business Development Loan Facility of SSS (Social Security System)

The Business Development Loan Facility is a lending facility of the Social Security System
(SSS) designed to contribute to the nation's economic growth and development by providing
financial assistance to the business sector for the purpose of increasing productivity and
enhancing potential earnings through expansion, diversification and other business development
projects.

It also aims to support the government's program of invigorating economic activity and
providing more employment opportunities.

1. How can an SSS member avail himself of the loan facility?

SSS member-employers may avail of the loan facility through the SSS accredited participating
financial institutions (PFIs) which will on-lend the fund to eligible borrowers for financing.

The loan application shall be filed with any of the following SSS' accredited participating
financial institutions (PFIs):

1. BDO Unibank, Inc.

6/F Equitable PCI Bank Tower 1, Makati City
Contact Person: 
Ms. Vivian D. de Chavez - Senior Manager         
Tel. Nos. 878-4567; 878-4570 (fax)

2. Development Bank of the Philippines

Sen Gil Puyat Ave., Makati City
Contact Persons: 
Mr. Jose Pepito A. Yusingbo - Manager and Officer-in-Charge,SME Unit
Ms. Leonore L. Tianco
Tel. Nos. 812-9932; 818-9511 loc. 2305
3. Land Bank of the Philippines
Land Bank Plaza, 1598 M. H. del Pilar, Malate, Manila        
Contact Person:
Ms. Lina Soriano - Program Officer
Tel. Nos. 405-7640; 522-2200; 551-2200; 405-7198

4. Philippine National Bank

3/F PNB Financial Center
Pres. Diosdado Macapagal Blvd. Pasay City
Contact Person:
Ms. Katrina Jane O. Mayoca - Asst. Manager 2, Financial Institutions Division
Tel. Nos. 573-4661; 526-3131 loc. 4661

5. Philippine Veterans Bank

101 V.A. Rufino St. Legaspi Village, Makati City
Contact Persons:
Mr. Plato C. Tirol - Officer-in-Charge, Investment Banking Division
Ms. Karina P. Rodriguez - Account Officer
Mr. Edward S. Lectura - Account Analyst
Tel. Nos. 846-5933 loc. 2101, 2105 and 2118

6. Planters Development Bank

314 Buendia Ave., Makati City
Contact Person:
Ms. Quennie Medrano - Senior Manager
Tel. No. 884-7600 loc. 5183

The above list of PFIs is subject to change.  Please confirm the accreditation of these PFIs with
the Housing and Business Loans Department, Business Loans Administration Section.

2. What are the purposes of the loan?

Loan Purposes
 The loan may be used for the following purposes: 

1. Site development;
2. Enhancement or modernization of existing facilities;
3. Construction or repair of building and other civil works;
4. Acquisition or repair/upgrading of machinery and equipment including furnishings;
5. Acquisition of existing facilities;
6. Acquisition of land (up to 50% of the acquisition cost); or
7. Working capital

3. Who may borrow under the loan Facility?

Eligible Borrowers

The eligible borrowers shall be new or existing private industries and enterprises including
registered Barangay Micro Business Enterprises (BMBEs) with the following qualifications:

1. Single proprietorship, Partnership or Corporation, as least 60% Filipino owned, including

cooperatives and non-governmental organizations;

2. Engaged in any business activities allowed/registered under the Philippine laws such as
but not limited to the following: 

a. Agri-Business - contract growing, aquaculture

b. Food Processing - rice mill, oil  mill, feed mill, meat processing, etc.;
c. Manufacturing - garment, ceramics, textile, furniture, construction materials
d. Commercial Production - particularly of food and basic consumer items and
products for export
e. Service-Oriented Enterprises - transportation, warehousing, utilities,
communications, etc.
f. Tourism Related Projects - hotel, resort, theme park, etc.
g. Real Estate Development Projects - industrial estate development
h. Sustainable Energy Projects - construction of green building, waste management
system, sewerage treatment plant, etc.
i. Extractive Industries - mining, quarrying, dredging, oil and gas extraction projects
j. Forest Development Projects - plantation, reforestation, regeneration and other
forest related projects
k. Trading Business
l. Leasing/Lending Business

3. Have proven track record of profitability for existing enterprises; provided that if the
company incurred losses in any year during the past three (3) years, the average income of past
two (2) or three (3) years should be positive.  The three (3) year track record of profitability may
be waived for enterprises which started operations during the last five (5) years.  In any case, the
borrower should be able to justify projection of viable operations with debt-equity ratio not
exceeding 3:1 after financing; and 

4. Must be an SSS member-employer in good standing.

The borrower is also subject to other criteria and policies which the Social Security Commission
may impose from time to time. 

4. How much is the loanable amount?

The maximum loanable amount shall be the lowest of the following, provided the borrower's
debt-equity ratio after financing shall not exceed 3:1 and that its total loan with the SSS shall not
be more than five percent (5%) of the SSS Investment Reserve fund (IRF):

1. Amount of loan being applied;

2. Actual need of the borrower (total project cost)
3. Loan value of the assigned collateral or securities; or
4. Maximum of P500.0 million per borrower.
5. How much is the interest rate?
The interest rate of the loan may be variable or fixed based on the prevailing SSS pass-on
rate to PFI plus PFI's spread.  The prevailing interest rates shall be reviewed monthly.

6. What is the term of the loan?

The loan shall be payable monthly, quarterly, semi-annually or annually based on the PFI's
approved amortization schedule and shall have a maximum term of fifteen (15) years with a
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 in extractive industries and forest development related projects
including those with exceptional cases that require longer tenor, provided, the term will not
exceed twenty-five (25) years.

7. What are the acceptable collaterals?

The loan shall be secured by any collateral acceptable both to the PFIs and the SSS provided
the loan is fully secured.

8. How much is the penalty in case of pre-termination of the loan?

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

9. Where should the member file his loan application?

10. The loan application shall be filed with any of the following SSS’ accredited participating
financial institutions (PFIs/banks).

1.