Agri-Agra credit shall refer to loans granted for the following activities:

1. Agriculture and fisheries production including processing of fisheries and agri-based products and farm inputs;
2. Acquisition of work animals, farm and fishery equipment and machinery;
3. Acquisition of seeds, fertilizers, poultry, livestock, feeds and other similar items;
4. Rehabilitation of farms resulting from calamities; and
5. Agricultural and fish production including processing of agri and aqua-based products, farm inputs and/or processes across the food commodity value chain.

Small farmers-refer to small crop growers and small livestock and poultry raisers as defined below:

1. Small Crop Growers-refer to owner-cultivator, tenants, leaseholders, etc. who are tilling not more than five (5) hectares of agricultural lands (RA 6657).
2. Small Poultry and Livestock Raisers-refer to those having the following maximum hog, poultry and livestock inventory at the time of accreditation by the PLI:
   • Poultry – 2,000 layers or 5,000 broilers;
   • Swine – 10 sows or 50 fatteners;
   • Goat/Sheep – up to 50 heads for meat and/or dairy;
   • Cattle – 10 fatteners or 5 breeders;
   • Dairy – 10 milking cows/carabaos

Small Fishers-refer to the following:

1. Coastal Fishermen – own or operate a fishing boat, including paraphernalia with total weight of not more than three (3) gross tons and conduct fishing activities within fifteen (15) kilometers from the shoreline.
2. Fishpond Operators – owner/operator of fishpond(s) of not more than five (5) hectares including those under fishpond lease agreement (FLA).
3. Fishcage Operators – owner/operator of fish cage(s) with total area of not more than 400 square meters.
4. Those engaged in aquaculture, which covers all forms of raising and culturing fish, shellfish, seaweed production, and other fishery species in brackish and marine areas of not more than five (5) hectares.

Unsecured loans of eligible borrowers. If secured partly by real estate mortgage (REM) or chattel mortgage (CM) or deposit hold-out in favor of the partner lending institution, only the unsecured portion which shall be not less than 50% of the loan shall be eligible for guarantee coverage.

1. BANKS (Universal Banks, Commercial Banks, Rural Banks, Cooperative Banks, Thrift Banks)
   1. Satisfactory credit standing with creditors, if any
   2. CAMELS Rating of at least “3”
   3. Past Due Ratio net of valuation reserve, of not more than 15%
   4. At least two-year track record in lending
   5. Capital Adequacy Ratio of at least 10%
   6. Adequate Reserve Requirement
   7. Profitable on the year preceding the application and as of the time of application for guarantee line


2. COOPERATIVES
   1. Registered with Cooperative Development Authority (CDA)
   2. Satisfactory credit standing with creditors, if any
   3. Past Due Ratio net of valuation reserve of not more than 25%
   4. At least two-year track record in lending
   5. Risk-asset ratio (for credit cooperative) of not less than 10%
   6. Complete part or full-time core management team
   7. Profitable on the year preceding the application and as of the time of application for guarantee line.


3. FARMERS’/PEOPLE’S ORGANIZATIONS OTHER THAN COOPERATIVES
   1. Registered with a registering entity (e.g. SEC, NIA, etc.);
   2. Operational and with satisfactory credit standing with its creditors, if any or with supervising government agencies/ entities such as NIA, DOLE, DAR, etc;
   3. With functioning Board of Directors or its equivalent, and presence of core management team (e.g. manager, bookkeeper and treasurer or officially designated officers to manage the lending program);
   4. Positive net worth on the year preceding the application and as of the time of application for guarantee line;
   5. With lending policies and guidelines and with basic recording system (e.g. loan disbursement and collection systems, etc.);
   6. At least two-year track record in lending;
   7. Past due ratio net of valuation reserve, of not more than 25%.


4. NON-GOVERNMENT ORGANIZATIONS
   1. Registered with Securities and Exchange Commission (SEC)
   2. Satisfactory credit standing with creditors, if any
   3. Past Due Ratio net of valuation reserve of not more than 25%
   4. At least two-year track record in lending
   5. Complete core management team
   6. Net surplus on the year preceding the application and as of the time of application for guarantee line.


5. CORPORATIONS THAT LEND TO SFF
   1. Registered with the Securities and Exchange Commission (SEC)
   2. Must have authority to engage in lending activity from appropriate government authority
   3. Certificate of No Derogatory Record from SEC
   4. No ownership and/or labor dispute for the past three (3) years
   5. Past due ratio net of valuation reserve, of not more than 15%
   6. Profitable on the year preceding the application and as of the time of application for guarantee line
   7. At least 60% Filipino-owned
   8. Debt-equity of not more than 80:20
   9. At least two-year track record in lending

CHECKLIST OF REQUIREMENTS

1. Request for Guarantee Line¹ (1 Original Copy)
2. Board Resolution indicating the requested amount of guarantee line and authorized signatories¹ (1 Original Copy)
3. Three-year Audited Financial Statements (1 Photocopy)
4. Latest Interim Financial Statement (shall not be more than six months old as of date of proposal) (1 Photocopy)
5. Schedule 11a1, for banks (1 Photocopy)
6. Declaration of Loan Portfolio for the past three years and interim period¹ (1 Photocopy)
7. Basic Business Information¹ (Business Profile) and/or General Information Sheet (1 Original/Photocopy)
8. Registration with appropriate authority (i.e. SEC, CDA, etc.) (1 Photocopy)
9. Certification of No Derogatory Record from SEC, for corporation (1 Original/Photocopy)
10. Certification of Authority to Engage in Lending Activity issued by SEC, for corporation (1 Original/Photocopy
11. Certificate of CAMELS Rating signed by the President and Compliance Officer¹, for banks (1 Original Copy)
12. Authorization to confirm CAMELS Rating with BSP¹, for banks (1 Original Copy)
    *11 and 12 may be merged in 1 document
13. Authorization, authorizing AGFP to secure relevant information from creditor¹ (1 Original Copy)
14. Complete report on the Computation of Risk-based Capital Adequacy Ratio, for banks (1 Photocopy)
15. Projected Loan Releases¹ (1 Original Copy)

Note:¹
Pro-forma available at the Agriculture Business Group

The PLI shall pay the guarantee fee based on the amount of the loan as indicated in the PN. The guarantee fee rates are provided herein, taking into consideration the following:

1. If the loan is covered by PCIC insurance – 50% discount
2. If the loan is granted to an agrarian reform beneficiary (ARB) – 50% discount
3. If the loan is PCIC insured and the borrower is an ARB – 75% discount

¹Enrolment for guarantee coverage of short-term loans extended for long gestating crops production such as coconut, banana, coffee, cocoa, mango and oil palm shall be allowed provided that:

1. The object/s of financing are existing and mature (fruit-bearing trees/plants); and
2. Loan maturity is not more than one (1) year.

The guarantee shall cover all risks, from losses due to non-payment of loans including those that are caused by the following, but not limited to:

• natural calamities (such as typhoons, floods, etc.)
• pests and diseases
• market aberrations

However, fraud or wilful misrepresentation on the guarantee coverage and guarantee claims on the part of the PLI shall not be covered and which may be used as basis for termination or revocation of guarantee line.