PBSP-Small and Medium Enterprise Credit (SMEC) Program – The PBSP-Small and Medium Enterprise Credit (SMEC) Program helps country-side based financial institutions increase their loan portfolios to small and micro enterprises (SMEs) outside the National Capital Region.
PBSP and its partner banks have provided P3.7 billion to some 8,860 SMEs nationwide, generating more than 14,000 jobs since 1989. SMEC has a P676.6 million loan portfolio available to small enterprises through qualified intermediary financial institutions.
Partnerships that Strengthen Banks and Entrepreneurs SMEC partners with thrift banks and rural banks as conduits of funds provided by a grant from the United States Agency for International Development (USAID) and a bilateral loan from the Kreditanstalt fur Wiederaufbau (KfW) of the Federal Republic of Germany.
The program also provides capability building to Intermediary Financial Institutions (IFIs) to enhance lending capabilities, and business support services to SMEs to improve productivity and competitiveness. The Corporate Volunteers for Enterprise Development, a business advisory program funded by the Canadian Executive Services Organization and supported by the Canadian International Development Agency, is one such support.
SMEC Intermediary Financial Institutions (IFIs)
(As of 11 June 2004)
1. Anchor Savings Bank
2. Asiatrust Development Bank
3. Bataan Development Bank
4. Dumaguete City Development Bank
5. First Consolidated Bank, Inc.
6. Luzon Development Bank
7. Philippine Business Bank
8. Premiere Development Bank
9. Queen City Development Bank
10. Bangko Buenavista Guirmaras, Inc.
11. Bangko Kabayan (Ibaan Rural Bank, Inc.)
12. Bank of Florida – A Rural Bank
13. BMS Rural Bank, Inc.
14. First Macro Bank
15. Gateway Rural Bank, Inc.
16. Guagua Rural Bank
17. Ibalon Rural Bank, Inc.
18. Lipa Rural Bank
19. New Rural Bank of San Leornardo, Inc.
20. One Network Rural Bank
21. Philippine Rural Banking Corp.
22. Producers Rural Banking Corp.
23. Rural Green Bank of Caraga, Inc.
Mechanics of the Program
A Project Implementation Committee (PIC) composed of representatives from PBSP, Department of Finance, Department of Trade and Industry, Chamber of Thrift Banks, Rural Bankers Association of the Philippines, Land Bank of the Philippines, and Development Bank of the Philippines provides policy guidance for the program.
1. The Project Implementation Committee (PIC) approves the accreditation of Intermediary Financial Institutions (IFIs) upon the recommendation of the Project Management Team.
2. Accredited IFIs submit to PBSP-SMEC the subloan schedules in support of drawings against their credit lines.
3. PBSP releases the loan proceeds through a Trustee bank to the IFIs, which shall in turn, relend the same funds to eligible sub-borrowers.
Qualifications for Loan Assistance
Small enterprise borrowers can avail of the loan from SMEC accredited rural and/or thrift banks, if they meet the following qualifications:
A citizen or permanent legal resident of the Philippines.
A corporation, partnership or business organization which is more than 50% owned by Philippine nationals.
Have their principal place of business in the Philippines, outside the National Capital Region.
Have a 100% privately-owned business with total assets of not more than P15 million at the time the loan is granted.
For more information, feel free to contact:
The Executive Director
Philippine Business for Social Progress
The Group Director
Philippine Business for Social Progress -
Small and Medium Enterprise Credit
Telephone: (632) 527-7741 to 51
Fax: (632) 527-3743
Email: email@example.com / firstname.lastname@example.org