DBP PROGRAMS FOR BAMBOO INDUSTRY

• MSME Development• DBP Forest Program

Ivie L. SabellanoOscar E. Sarmiento, Jr.

DEVELOPMENTAL DEVELOPMENTAL THRUSTSTHRUSTS

SME AND ENTERPRISE DEVELOPMENT

Micro, Small and Medium Enterprise

ObjectivesObjectives To strengthen the bank’s assistance to MSMEs and fastrack provision

of credit and capital assistance

To meet MSMEs credit needs and facilitate processing by providing loans of lower amounts with less documents and shorter turn around time

To expand the bank’s support to the countryside by providing fund support to cooperatives nationwide

To support the national government’s MSME development effort and help generate income and employment for the people in the countryside

SME Programs/ InitiativesSME Programs/ Initiatives Business Assistance Center (BACs) Program Development Policy Guidelines Formulation / Enhancement

Other Programs for MSMEsOther Programs for MSMEs One-Town One-Product (OTOP) Program Organic Agriculture Financing Program High Value Commercial Crops Environmental Development Program

BUSINESS ASSISTANCE CENTERS

DEPARTMENT OF SCIENCE AND TECHNOLOGY

TECHNICAL EDUC. & SKILLS DEVT AUTHORITY

DEPARTMENT OF TRADE & INDUSTRY

OTHER AGENCIES

BAC – a one stop shop that provides research and extension services to MSMEs. It aims to provide seamless access to market, credit & technical

GEOGRAPHIC SPREAD OF BACs

LUZON1. Mariano Marcos State University2. Benguet State University3. Pangasinan State University4. Pampanga Agricultural College5. Roosevelt College System6. SME Association of Occ. Mindoro, Inc.7. Camarines Sur Agricultural College8. Palawan State University

VISAYAS1. Aklan State University2. Central Philippines University3. Foundation University4. Cebu State College of Science & Tech.

MINDANAO1. MASICAP Foundation, Davao City2. Unlad Kabayan Migrant Services

CoverageCoverageStart-up or existing micro and small

enterprisesAsset size of not more than P15 millionLoan requirements over P150,000 but

not more than P10 million

Eligible BorrowersEligible BorrowersSingle ProprietorshipPartnershipCorporationCooperativeNon-Government OrganizationsOther entities with legal personality to

engage in a business enterprise

Eligible Loan PurposesEligible Loan PurposesProductionWorking Capital (Short Term or

Permanent)Investment in plant expansion and/ or

equipment acquisitionConfirmed Purchase Order (PO)/ Letter

of Credit (LC) Financing

Lending RatesSME SULONG rateSME SULONG rateLoan Repayment

Based on the project type and Based on the project type and projected cash flow. Maximum projected cash flow. Maximum repayment term of ten (10) years repayment term of ten (10) years depending on the amount of loan depending on the amount of loan

Maximum grace period of three Maximum grace period of three (3) years(3) years

Salient FeaturesSalient Features

Maximum Loan AmountMaximum Loan AmountPrivate entityPrivate entity DBPDBP 90% 90% Equity participationEquity participation 10% 10%

Salient FeaturesSalient Features

One-time service fee of P1,000.00 or 0.1% of the loan, whichever is higher, charged upon approval

Documentary Stamp Tax shall be deducted directly from the proceeds of the loan

Monthly interest rates are inclusive of Gross Receipts Tax

Extension fee shall be collected, if necessary

FeesFees

Unregistered Real Estate Mortgage on land covered by Transfer Certificate of Title (TCT)

Chattel Mortgage on equipment Unresigtered mortgage on Tax Declaration, which shall

be updated yearly as long as there is an outstanding obligation Affidavit of Non-Tenancy Certification of the Brgy. Chairman or Affidavit of

Adjoining Owners* Certificate of Land Ownership Award (CLOA) and

Original Certificate of Title (OCT) may be accepted

Acceptable CollateralAcceptable Collateral

For PO and LC Financing: Deed of Assignment of Proceeds*

Alternative collaterals Hold-out on Deposit Post-Dated Checks Assignment of Proceeds of Receivables/Sales Inventory Insurance

Acceptable CollateralAcceptable Collateral

Application Form Customer Information Report Confidential Information Sheet DTI Endorsement of Project Business Plan (Audited) Financial Statements for the last 3 years for

going concerns as submitted for taxation purposes to the BIR except for the following: Microfinance Loans Brgy. Micro Business Enterprises Loans secured by hold-outs on or assignment of deposits or

other assets considered non-risk by the Monetary Board Pre-operating Balance Sheet and SALN of stakeholders

for Start-up Projects

Basic Documentary RequirementsBasic Documentary Requirements

Business Permit/Licenses Other Requirements:A.For Individuals:B. Income Tax Return of borrower and co-makerB. For Corporation: By-Laws & Articles of Incorporation/ Cooperation Resolution of the Board of Directors authorizing the

filing of application/transaction with DBP

Basic Documentary RequirementsBasic Documentary Requirements

Additional RequirementsAdditional Requirements

Real Estate Collateral Two Copies of Sketch/ Location Map Two Copies of TCT/ OCT

Chattel Collateral Affidavit of Ownership & Certification of Non-

Encumbrance with Specifications Copy of OR/ CR for transportation equipment

Additional Requirements - Additional Requirements - per Type per Type of Loanof Loan

Loans P1.0M and BelowUtility/ Credit Card billings or three (3)

months bank statementFranchiseBusiness Profile of FranchisorPhotocopy of Franchise AgreementEndorsement by FranchisorFranchise Package Kit

Additional Requirements - Additional Requirements - per Type per Type of Loanof Loan

Term Loan (Start-up)Business PlanStatement of Assets, Liabilities and Networth of

Principal Borrower/sBank Statement for at least three (3) monthsTerm Loan (Existing)Business PlanFinancial Statements for the past three (3) years

(n house FS acceptable)

Additional Requirements - Additional Requirements - per Type per Type of Loanof Loan

DealershipPhotocopy of documents submitted to the

mother companyDealership ContractLetter of Endorsement from mother

company/ supplier

Additional Requirements per Additional Requirements per Type of LoanType of LoanCredit LineBank Statement for at least three (3) monthsProjected Cash FlowProjected Income StatementPurchase Order/Letter of Credit FinancingProjected Cash FlowProjected Income StatementCop of Irrevocable LC/PO

The DBP Forest is NOT a loan project.

It is an assistance/partnership

project.

Program Basics

Link to International Goals

International commitments for protecting and sustaining the environment:

• The Vienna Convention on the protection of the ozone layer, in 1991;• UN Conference on Environment and Development (UNCED) in Rio de Janeiro in 1992;• UN Framework Convention on Climate Change (UNFCCC) in 1994 which calls for the control of greenhouse gas emission; and• Kyoto Protocol or the UNFCCC of 1997

Background

Philippine Medium Term Philippine Development Plan (2004-2010)

Common Goal: reduce poverty through job creation and enterprise

Ensure the physical sustainability of the economic growth with job creation, through identification of measures to restore the environment, including the reforestation of 1 million hectares in 140 priority watersheds, the extensive replanting of mangroves, and the maintenance of fish sanctuaries in coastal and fishing communities.  

BackgroundLink to National Goals

The DBP Forest was conceptualized

in December 2004 as an offshoot of

the Infanta tragedy

Background

BACKGROUND

DBP believes that improving theenvironment can be done by helpingestablish forests and therebyprevent soil erosion, conserve waterand provide habitat to wildlife and,more importantly, create rurallivelihood opportunities.

THE DBP FOREST PROGRAM an initiative of DBP to protect the country’s watershed areas.

Long-term vision:to develop downstream industries in the rural areas by supporting and encouraging the forestation of open areas through the planting of high value fruit trees and other useful species.

Other similar undertakings include coastal rehabilitation through planting of mangroves.

BACKGROUND

Upland Forest

The forest area in the Philippines has fallen from 21 million hectares in 1900 to less than 6 million in 1996 (DENR 2002).

The rate of destruction has been faster in Southeast Asia than elsewhere.

Soil erosion is now the most serious environmental problem in the Philippines

Sector OverviewPhilippine Forest

Mangrove Forest

In 1920, mangrove forest area is estimated at 450,000 hectares. It has shrunk to 150,000 hectares mainly due to conversion to fishpondsRate of depletion is about 3,700 has/yr

Sector OverviewPhilippine Forest

Salient FeaturesWork/Process Flow

institutions and agencies that are involved in forestland development

State Universities and Colleges (SUCs)

People’s Organizations (POs) that have been awarded Community-Based Forest Management Agreement (CBFM) by DENR

Local Government Units (LGUs)

Other Government Agencies which have large forest areas under their management

Salient FeaturesEligible Forest Partners

1. Disaster prone areas with critical watershed/river basin that are within disaster prone areas.

2. Areas where watersheds for restoration under the General Program of Action are located.

3. Areas covering critical watersheds that support irrigation systems as identified by the National Irrigation Administration (NIA).

Further screening of the priority areas shall be linked with other relatedprograms of the Bank such as:1. DBP Water Resources and other Related Programs2. Forest-Based Manufacturing Projects3. DBP Forest Fund Contributors

Sector OverviewSelecting Priority Forest Project Areas

Specific project sites must consider the ff:

Areas with slope of 18% and above Not to be subjected to land-use change Areas proven to be compatible with

certain high value fruit trees Accessible to allow easy bringing in of

planting stocks and facilitate monitoring and bringing of produce to the market

High poverty incidence

Sector OverviewLocation of Forest Project

• High-value fruit trees (mango, durian, mangosteen, rambutan, pomelo, nangka, lanzones, oranges & pili, etc.)• Mangroves of various species• Fast growing and indigenous forest trees• Bamboo• Ilang-ilang and other essence producing trees• Others (e.g. bignay, tannin-producing species & mulberry)

Sector OverviewEligible Plant Species

NO CUTTING of trees to plant trees

Partner has mechanisms for sustainable management of the project

On-site residents to participate in the project

Sector OverviewBasic Principles

The Forest Partner needs to establish the ff:

• Tenurial control over the vast track of land• Legality and relevance of entity (registration with Securities and Exchange Commission and/or Cooperative Development Authority)• Activeness and capability of the organization and members• Basic skills and resources in venturing into a forest project• Planting and Maintenance plan

Salient FeaturesOther Conditions

100% Cost of Planting Stocks

10% allowance for mortality

40% for planning, pre-planting, planting and first year operating cost (based on the cost of planting stocks)

Salient FeaturesDBP’s Assistance to Forest Partners

Classification/Type Desirable Size

1. Revenue GeneratingFruit Tree Forest 50-200 haNipa Plantation 10-100 haOther economically useful species 50-100 ha

2. Non-Revenue GeneratingMangrove Forest (except nipa) 10-100 haForest Trees not for cutting 50-100 ha

Salient FeaturesClassification and Size of Project Site

BPI-accredited commercial nurseries nationwide

State Universities and Colleges

DA-Bureau of Plant Industry

DENR-Ecosystems Research and Development Bureau

* Suppliers should be accredited by DBP

Salient FeaturesSource of Planting Stocks

Except for fruit tree species that are normally not asexually propagated (e.g. mangosteen), the project will avoid planting stocks from seeds.

Planting scheme (e.g. spacing) will follow prescribed or commonly adopted standards for each crop.

Mix planting may be considered to ensure year-round revenue.

Interplanting of other economic crops will be encouraged.

Program ModalitiesPlanting Scheme

Based on net yield 70% for the Partner 30% for DBP

For Revenue-Generating Projects

Salient FeaturesRevenue Sharing

30%

70%

DBPPARTNER

Letter of Intent and Application Form

Development Plan/Planting and Maintenance Plan

Monitoring Plan

Baseline data/Rapid appraisal

Basic Documentary Requirements

Development Advocacy and Special Projects Unit

Program Development

3rd Floor DBP Head Office

Se. Gil Puyat Ave. cor Makati Ave., Makati City

Tel Nos.: 8128088/8189511 loc. 2331/2327

Fax No.: 812-8088

E-mail: acmaghirang@devbankphil.com.ph

ebpagkanlungan@devbankphil.com.ph

gmbueno@devbankphil.com.ph

Contact Information

DBP Southern MindanaoDBP Southern MindanaoGen SanKoronadalTacurongCotabato

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