IGLF Wholesale Term Lending
(Per Project)




PROGRAM DESCRIPTION

       The IGLF is a government fund administered by the Development Bank of the Philippines to provide assistance to eligible Micro, Small and Medium Enterprises (MSMEs).



ELIGIBLE BORROWERS/
CONDUIT FI's

    • Banks and non-bank financial institutions (NBFIs) with approved lines with DBP for relending/onlending to eligible MSMEs. NBFIs include Microfinance Institutions (MFIs), NonGovernment Organizations (NGOs), financing companies and credit cooperatives.
    • Microfinance institutions involved in wholesale lending and accreditation of other qualified MFIs


ELIGIBLE SUB-BORROWERS

• Viable privately-owned productive enterprises except those engaged in basic agricultural production without post harvest production activities
• At least 60% Filipino-owned



REPAYMENT TERMS

                 
    Credit Windows
    Term
    Grace Period
    Medium Term Over 2-5 years 2 years maximum
    Long Term Over 5-12 years 3 years maximum
    For Purely Permanent Capital Loans 7 years maximum

ELIGIBLE PROJECTS

    • Purchase of project site (for land – maximum of 25% of IGLF loan)
    • Construction of project building suitable for the needs of the IGLF project to be financed. Residential buildings are not eligible
    • Purchase of machinery, equipment, fixtures and installation
    • Permanent working capital



MAXIMUM ASSET SIZE OF SUB-BORROWERS

    • PhP 200 million before financing; provided the aggregateloans exceeding PhP 100 million up to PhP 200 million shall be for industries with
    high value linkages and those with high employment generation potential
    • If the project is a spin off or subsidiary of another firm,the combined assets of the sub-borrowers shall not exceed PhP 200 million
    • For venture capital corporation-assisted projects, interlocking ownership is allowed up to 50% of the equity of the IE


MAXIMUM LOAN SIZE PER SUB-BORROWER

    Php 100Million


INTEREST RATE

    Fixed or Variable Set monthly


INTEREST RATE OPTION FOR MEDIUM & LONG TERM LOANS

    Conversion from variable to fixed interest rate, or vice versa is allowed once during the term of the loan


ELIGIBLE EXPENDITURES

    Project-related expenditures incurred not more than 180 days prior to DBP’s formal acceptance of the loan application


FINANCING MIX BASED ON PROJECT COST

    IGLF(maximum)          =    80%
    Investment Enterprise    =    20%
    ______________________________
            Total                      =    100%


COLLATERALS

    Collaterals acceptable to the participating financial institutions (PFIs) or DBP depending on latter’s assessment of the Financial Institution


RELEASE OF LOANS

    One or more tranches at the option of the IE or FI



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