SULONG PROGRAM

SME Unified Lending Opportunities for National Growth

Program Description

SULONG is a unified lending program designed to support the National SME Development Plan. Under this program, all participating Governtment Financial Institutions shall apply simplified and standardized lending procedures and guidelines to evaluate loan application of SMEs, e.g., loan purpose, fee structures, interest rates, application forms, financial ratios, and other lending parameters. This unified lending scheme is in addition to the existing financial services of the participating GFIs.

There are two types of loans that are available for SMEs under this program and these are:

1. Short term loans payable in one year, and
2. Long term loans payable up to five years.

Objectives

• To simplify and standardize the lending procedures of GFIs, thereby enhancing the SMEs’ access to needed funds.
• To shorten the list of documentary requirements to further facilitate the lending process.
• To create a wider, borderless financing system that will afford the SMEs greater access to short- and long-term funds.
• To lower the effective cost of borrowing by SMEs and liberalize the requirement.

Whole Sale Lending for Rural Banks and Thrift Banks

All eligible Rural Banks and Thrift Banks can now apply to any participating Government Financial Institution (GFIs) for accreditation under the SULONG unified accreditation system.

The participating GFIs in wholesale lending are:

• Development Bank of the Philippines
• Land Bank of the Philippines
• Small Business Guarantee and Finance Corp.
• Social Security Systems

Eligibility and Documentary Requirements

Requirements Documents to be Submitted CAMELS rating should be at least “3.0” Latest report of BSP bank examination Compliance with the 10% max. ratio of DOSRI past due loans Copy of quarterly report submitted to BSP No loan arrears with LBP and BSP, Quedancor, PBSP, SBGFC, PhilExim, DBP and SSS. Not suspended with BSP and LBP rediscounting. Credit Investigation report by GFI Credit and Appraisal Management Unit or Department Past due loans and items in litigation is not in excess of the industry average plus 2% but not exceed 25% (based on latest quarterly report of BSP).Banks with past due rates of in excess of industry average plus 2% but not more than 25% are given 5 years transition period to comply with the standard. Copy of the Consolidated Statement of Condition and Income & Expense as submitted to BSP Not deficient in loan-loss provisions/reserves Certification from Bangko Sentral ng Pilipinas Ratio of acquired assets to total assets is not more than industry average plus 2% but not to exceed 15%. Banks with ratio of acquired assets to total assets in excess of industry average plus 2% but not more than 15% are given 5 years transition period to comply with the standard. Copy of the latest computation of the risk-based capital adequacy ration cover for credit risk per BSP Circular No, 280 Positive results of operations in the last preceding calendar year. Copy of the latest interim financial statements as submitted to BSP Not deficient in bank reserves for the last six months preceding the filing of application. Copy of weekly report submitted to BSP or BSP Certification Ratio of accrued interest receivables to surplus (free) plus undivided profits is less than 100% Copy of latest interim financial statements as submitted to BSP The bank is owned and managed by the same persons (key officers) at least for the last two years. Applicant’s records No derogatory information gathered on the officers and directors of the bank. GFI Credit and Appraisal Management Unit or Department Compliance to BSP Circular 283 (May 17, 2001) on Corporate Governance Applicant’s reply to questionnaire on comparison of BSP mandated practices with actual practices.

For SSS, whose charter requires that the institution must be in good standing with SSS and must be profitable in past 3 years, these requirements become automatic in addition to the above list of requirements.

DOWNLOAD Bank Accreditation Application Form

For your inquiries and assistance please contact:

Mr. Benel Lagua
Finance Committee Head
National SME Agenda
Tel. No. (02)810-5791

SOURCE : Department of Trade and Industry SME Agenda