Program Description A guarantee facility that provides support to the financing needs of Micro, Small, and Medium Enterprises (MSMEs) granted by BSP supervised Financial Institutions. This covers both working capital and/or term loans which observes a pro-rata risk-sharing arrangement.
  1. To strengthen and expand the business reach of the lender’s MSME portfolio by utilizing the sovereign rating and zero–risk weight feature of PHILGUARANTEE’s guarantee;
  2. To optimize PHILGUARANTEE’s leveraging capability for lenders to effectively and efficiently use its capital resources; and
  3. To channel credit to the preferred sectors with an emphasis on the supply side of the economy with the end vision of generating employment at the grassroots level.
Nature of the Guarantee Ordinary Guarantee.
First loss guarantee, but a pro-rata risk guarantee of losses after reasonable collection efforts under Circular No. 855 Series of 2014 issued by the Bangko Sentral ng Pilipinas (BSP).
Eligible Lenders
  1. Financial Institutions (FI)
    1. CAMELS rating of at least “3” OR its equivalent in Supervisory Assessment Framework (SAFr) rating
    2. In-place risk taking process
    3. Supervised by BSP
  2. Non-Bank Financial Institutions (NBFI)
    1. A document equivalent to FIs CAMELS/SAFr rating, if any
    2. In-place risk taking process
    3. Supervised by BSP
Eligible Borrowers Entities that are involved in:
  1. Export
  2. Import-Substitution
  3. Trading Activities and Service Providers
  4. Projects related to the Government’s Investment Priorities Plan such as:
    1. Manufacturing
    2. Tourism
    3. Agri-modernization
    4. Telecommunications
    5. Infrastructure
    6. Power/energy generation or distribution
    7. All other infrastructure and development programs


Portfolio Requirement No minimum number of borrower/s per batch
Debt-to-Equity of a borrower shall not exceed 3:1 after financing
Guarantee Coverage 50% to 80% of Principal Amount
Eligible Loan Purpose a. Working Capital (maximum of 50% guarantee cover)
b. Capital Expenditure
c. Combination of Above
Loan Amount Up to P50 Million per borrower
Term of Loan Up to ten (10) years
Term of Guarantee One (1) year
Fees plus applicable taxes
Guarantee Fee*: 1.25% per annum
Origination Fee*:
  1. Loans below P500,000:  P250.00
  2. Loans P500,000 up to P1.0 Million:  P500.00
  3. Loans above P1.0 Million: Five (5) basis points (bps) for every P10 Million (0.05% per P10 Million)
Amendment Fee: P5,000 per amendment
*Subject to adjustments in fees based on Management’s recommendation and approval.
Collateral/Security As may be required by the Accredited Financial Institution/ Accredited Non-Bank Financial Institutions (AFI/ANBFI).
Portfolio Default Tolerance PHILGUARANTEE may suspend the acceptance of new borrowers when the AFI/ANBFI reaches any of these points:
  1. Gross Non-Performing Loan (GNPL) rate of Covered Loans reaches twice (2x) BSP average GNPL rate per latest yearend BSP statistics. Benchmark shall be based on Bank’s Classification (i.e., UKB/KB, TB, RB).
  2. When actual claims reach 30% of the guaranteed amount. Existing guaranteed borrowers will not be affected.
Facility Account Review Every Anniversary Date

MSMEs shall be defined as any business activity or enterprise engaged in industry, agribusiness, and/or services whether single proprietorship, cooperative, partnership or corporation whose total assets, inclusive of those arising from loans but exclusive of the land on which the particular business entity’s office, plant and equipment are situated, must have value falling under the following categories:
1. Micro not more than P3,000,000
2. Small P3,000,001 to P15,000,000
3. Medium P15,000,001 to P100,000,000