In connection to the Policy Advisory entitled "Implementing Guidelines for the Regular CARES Program (for small- and medium-sized firms)" released last August 28, 2020, the Small Business Corporation (S.B. Corp.) recently provided additional information in the loan application process for the Regular CARES Program.
In lieu of the Online Loan Application System (which is currently being developed) and in compliance to COVID-19 safety protocols, the S.B. Corp. reminds all borrowers to submit their loan application to the contact person in the appropriate S.B. Corp. Regional Lending Office through e-mail. The list of the contact persons can be found in the Directory below. Borrowers are also highly advised to keep the original copies of their loan application documents as these shall be required during the loan release processing.
a. During pre-processing of loan applications
• Fully-accomplished Business Loan Application Form and Signature Card
• Board Resolution to borrow and on signatories (for Corporation and other institutional clients)
• One (1) Government-issued ID with picture
• Proof of permanent business address
• Proof of business track record
• DTI or SEC Registration
• Mayor’s Business Permit
• Audited 2019 Financial Statement
• BIR Certificate of Registration
• Proof of No. of Employees
• Proof of bank account
b. During loan evaluation
• Photo of business site with borrower
• Negative File Information System/Credit Checking
• AO Call Report (based on virtual interview done with the borrower)
• Simplified Credit Scorecard
Other Loan evaluation requirements:
• Debt-Servicing Capacity (DSC) of at least 2
• Submission of the Loan applicant of a simple Business Recovery Plan: At the very least, the plan should have the following information:
-Assessment of current business
– effect of the community quarantine in the sales and income (year on year increase/decrease)
- Business Plan
– changes in products/services, target market and business practices.
100% Filipino-owned enterprises;
Enterprises with asset size, excluding land, of P3M to P100M;
Operating for at least one (1) year prior to March 16, 2020; and
Affected by the imposition of Community Quarantine measures.
Existing SME borrowers of S.B. Corp. shall be given priority but without prejudice to new SME borrowers. Loans of existing borrowers must be current in status prior to the declaration of the Community Quarantine.