MSME CREDIT GUARANTEE FACILITY (MCGF)
|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.
|Nature of the 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).
|Entities that are involved in:
STANDARD TERMS AND CONDITIONS
|No minimum number of borrower/s per batch
Debt-to-Equity of a borrower shall not exceed 3:1 after financing
|50% to 80% of Principal Amount
|Eligible Loan Purpose
|a. Working Capital (maximum of 50% guarantee cover)
b. Capital Expenditure
c. Combination of Above
|Up to P50 Million per borrower
|Term of Loan
|Up to ten (10) years
|Term of Guarantee
|One (1) year
|Fees plus applicable taxes
|1.25% per annum
|P5,000 per amendment
|*Subject to adjustments in fees based on Management’s recommendation and approval.
|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:
|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