State-owned Land Bank of the Philippines (Landbank) is allocating up P3 billion for lending to small and medium enterprises through a new credit facility, officials said late Thursday.
The so-called Countryside Loan Fund – Credit Support for the Environment, Agribusiness and Small and Medium Enterprises or CLF-CREAM program, Landbank aims to address the medium to long-term financial requirements of borrowers in various projects.
The government-owned financial institution is particularly eyeing borrowers engaged in agri-related and environmental projects as well as other small and medium enterprise projects.
“Through this project, we hope to be able to expand our credit outreach and support more high-impact development projects that contribute to job generation, promote environmental protection and support entrepreneurship,” Landbank president and chief executive officer Gilda E. Pico said.
She said that participating financial institutions that have been accredited by the bank under the previous World Bank-funded CLF programs are eligible to avail of the facility.
The participating institutions include commercial banks, thrift banks, rural banks, non-bank financial institutions and the LBP Leasing Corp.
The CLF-CREAM may be availed of by sole proprietorships, partnerships, corporations which are at least 70-percent Filipino-owned as well as cooperatives and associations.
“A total of P3-billion loanable fund was earmarked by Landbank and is available on a first-come, first-served basis,” Pico said.
Under the facility, a single-borrower may borrow up to P300 million for working capital or fixed assets requirements.
Landbank said the facility will prioritize the financing of agriculture and agri-related projects, food and agro-processing ventures, manufacturing activities, product distributions, service-oriented activities like warehouse, utilities and transportation, environmental protection such as renewable energy projects.