How to Avail Business Loan in SSS

What is a Business Loan?

A Business Loan is a type of loan offered to provide applicants, particularly those who are working in the business sector, financial aid in order to help them improve their overall operation and management. It helps entrepreneurs finance their long and short-term needs such as investing in advanced equipment, expanding the workplace, and increasing the capital for other marketing strategies, among others.

In SSS, a Business Loan is designed through a Business Development Loan Facility which serves as a lending facility that helps the business industry thrive and eventually, strengthen the economic performance of the country. Furthermore, a Business Loan in SSS extends support to better help the government in progressing economic activities and providing more job opportunities.

Benefits of a Business Loan in SSS

A Business Loan in SSS may turn out beneficial for a lot of purposes particularly in establishing, expanding, diversifying, and/or innovating a potential business development project. This kind of loan provides financial assistance to enable business sectors to increase their productivity to maximize their business resources to effectively work on the following:

• Site development
• Working capital
• Enhancement or modernization of existing facilities
• Construction or repair of buildings and other civil works
• Acquisition of existing facilities
• Acquisition of land (up to 50% of the acquisition cost)
• Acquisition or repair/upgrading of machinery and equipment including furnishings

Business Loan in SSS

Loan Features

Loan Amount: The maximum amount shall be the lowest of the following:

1. Amount of loan applied
2. Total project cost
3. The loan value of the assigned collateral or securities
4. A maximum amount of Php500 million per borrower

The above loan amounts will be approved provided the borrower’s debt-equity ratio shall not exceed 3:1 after financing and that the total loan with SSS shall not be more than five percent (5%) of the SSS Investment Reserve fund (IRF).

Loan Tenure: Up to fifteen (15) years with a three (3) year grace period on principal payment. 

Loan terms of more than 15 years with a 3-year grace period are allowed to be used for projects in extractive industries and projects relevant to forest development as long as the repayment does not exceed twenty-five (25) years.

Interest Rate: based on prevailing interest rates that are reviewed monthly. 

Eligibility Criteria

• Must be a new or existing private industry and/or enterprise such as registered Barangay Micro Business Enterprises (BMBEs) with the following qualifications:
  • At least 60% of Filipino owned single proprietorships, partnerships, or corporations, including cooperatives and non-governmental organizations (NGOs).
  • Businesses that are registered under the Philippine laws such as but are not limited to the following business activities:
    • Agri-Business
    • Food Processing 
    • Manufacturing 
    • Commercial Production
    • Service-Oriented Enterprises 
    • Tourism Related Projects 
    • Real Estate Development Projects 
    • Sustainable Energy Projects
    • Extractive Industries
    • Forest Development Projects
    • Trading Business
    • Leasing/Lending Business

• Must have a track record that proves the profitability of existing enterprises.
  • The company that incurred losses in any year during the past three (3) years should have a positive average income of the past two (2) or three (3) years.
  • For enterprises that started operations during the last five (5) years, the three (3) year track record of profitability may be waived.  The borrower should be able to justify the projection of viable operations with a debt-equity ratio not exceeding 3:1 after financing.
• Must be a member-employer with good standing.

How to Avail a Business Loan in SSS?

To apply for a Business Loan in SSS, you should first ensure that you are eligible. Requirements might vary depending on the selected loan facility which you would be applying from. Once settled, choose and coordinate with the following SSS’ accredited PFIs or banks to file your Business Loan application:

Development Bank of the Philippines

Sen Gil Puyat Ave., Makati City

Fund Sourcing Department

Tel. No. 815-0916

Valiant Rural Bank-Iloilo

41 A. Mabini Street, Iloilo City

Special Accounts Department

Tel. No. 336-6396 loc. 210

Philippine Veterans Bank

101 V.A. Rufino St. Legaspi Village, Makati City

Commercial Banking Department

Tel. No. 902-1629

Planters Development Bank

314 Buendia Ave., Makati City

Program Management Unit

Tel. No. 884-7600 loc. 5183

Land Bank of the Philippines

Land Bank Plaza, 1598 M. H. del Pilar, Malate

Programs Management Department

Tel. No. 522-0000 loc. 2448

You may also check the complete list of accredited PFIs by reaching out Business and Development Loans Department at telephone number 8920-6401 loc. 5115 or through their email at [email protected]

Conclusion

Reviving one’s business is far from being easily achieved in this period where a pandemic still exists. However, with Business Loan in SSS, it seems that this situation is no longer impossible to do. For as long as you are approved for a Business Loan, it is already guaranteed that enhancing your business will not be your primary concern anymore.