FSSI was established on August 11, 1995 following a successful debt for development agreement between the Government of the Philippines and the Swiss Confedera-tion. The latter cancelled the Philippines outstanding export credit debts amounting to 42 million Swiss Francs and a counterpart fund, equivalent to 50% of the cancelled debts, was put up as an endowment to finance sustainable development projects.The FSSI endowment is a public trust. FSSI seeks to apply innovative fund utilization that will maximize both social and financial returns through social entrepreneurship, at the same time, ensuring continuing growth for the institution, equitable development and environmental sustainability.

Foundation for a Sustainable Society46E Eugenio Lopez St. cor. Samar Ave.South Triangle, Quezon CityTelefax: +632 928 8671Phone: +632 9288 8422+632 4114702 to 03www.fssi.com.ph

The Foundation for a Sustainable Society (FSSI) is committed to provide social investments as a contribution to sustaining local economies and eco-systems. We aim to facilitate social investments that lead to triple bottom lines in terms of economic viability, ecological soundness and social equity. We nurture partnerships that help empower the poor to become productive members of society and as stewards of our natural resources.

We support social enterprises that undertake development, production, processing and marketing of commodities by the marginalized social sectors. We believe that growing social enterprises requires the support of both state and non-state stakeholders. It also entails capacity building through awareness building and education. And so we support alliances among social enterprises and civil society, as well as with national and local government agencies, and the rest of the business sector that are inclined to working with social enterprises.

The Social Enterprise Investment Fund (SEIF) is aimed at primary cooperatives, cooperative federations, community-based organizations, alliances/network of civil society organizations, private enterprises, and community financial institutions. We also support initiatives that are part of local convergences on the following: Local Economy Development (LED) partnership; Cluster of municipalities sharing an ecosystem; Integrated Area Development (IAD) cluster; Sector- or industry-based formations; Marginalized community, such as a community of Indigenous people or upland dwellers.

Our Social Enterprise Investment Fund consists of project loans, asset management products, equity contribution and grants.

Social Enterprise Investment Fund

Project CriteriaTriple Bottom Line or the interface of the economic, social and environmental serves as FSSIs conceptual guide in project development, appraisal, approval, monitoring and evaluation. We support partnerships that promote the Triple Bottom Line through social enterprise development, community governance and advocacy.

EligibilitiesFSSI welcomes application for partnership with cooperatives, cooperative federations, non-government organizations, peoples organizations, micro, small and medium enterprises registered as stock corporations, partnership or single proprietorship, cooperative banks and rural banks.

ApplicationApplication packs for Project Loans, Asset Management Products, and Grants are downloadable at www.fssi.com.ph. Application may be sent by post mail or e-mail to FSSI.

AppraisalOnce a proposal has been accepted, FSSI shall assign a staff to start appraising your project. The process consists of desk review, field visit, and meeting with the proponent. Additional information may be requested during the appraisal period.

ApprovalThe appraisal report is reviewed by FSSIs Development Services Unit en banc and presented to pertinent bodies for review and final approval. A partnership agreement will then be forged by the proponent and FSSI after a notice of approval has been sent to the proponent.

LoansFSSI believes in providing opportunities to communities to improve peoples means of living in a sustainable manner by scaling-up social enterprises. FSSI extends project loans to enhance capacity of social enterprises to meet their increasing demand for financial investment that is necessary to help ensure growth and sustainability.

Our Social Enterprise Investment Fund provides Loans to the following organizations: a. Cooperatives;b. Cooperative federations;c. Small and Medium enterprises (SMEs) registered either as stock corporation, partnership or single proprietorship;d. Community Financial Institutions that include coopera-tives, cooperative federations, cooperative banks, non-government organizations (NGOs), and rural banks that are providing financial services in marginalized communities;e. Non-government Organizations(NGOs); and,f. Peoples Organizations.Project loans are provided for a specific business proposal or business activity. The general terms are classified as either term loan or credit line.

Term loan a type of loan released in lump sum or in tranches and payable in fixed number of equal instalments

on principal plus interest.

Credit line a type of loan wherein a borrower can draw from a maximum amount of credit at any time during the validity pe-riod. The amount of credit drawn is payable in fixed number of instalment(s).

Loan interest rate varies based on type of loan and is generally set lower than most commercial

rates.

Loan PackagesEnterprise Loan - is for the acquisition of additional capital assets and for increasing working capital of an enterprise engaged in commodity production, processing and marketing. Loan amount is up to Php 20M. Maturity is one year to five years.

Start-up Enterprise Loan is intended to support up-scaling of a newly established enterprise that promises to contribute to improving participation of a target social sector in a local value chain. Loan amount is from Php 500,000.00 to Php3M. Loan maturity is up to five years.

Bridge Financing - is a short-term loan for emergency financing requirement of micro and small enterprises. Loan amount is up to Php 500,000.00 and maturity per drawdown is up to one year.

Business Development Services (BDS) Loan is a soft loan that is extended to help finance other enterprise investments such as research and development, patenting, market development, organizational development, skills and competency enhancement.

Community Financial Institutions (CFI) Commodity Production Loan is a loan extended to CFIs for the purpose of extending loans to individual borrowers engaged in production, processing and trading of agricultural and fishery products. Maximum loan amount is Php 30M. Maturity is one to three years.

Community Financial Institution (CFI) Microfinance Loan is a loan extended to a CFI to help expand outreach of its microfinance service especially to the marginalized sector that have less access to financial services. Maximum loan amount is Php 30M. Maturity is from one year to three years.

Asset Management ProductsFSSIs Asset Management Products (AMPs) are specially packaged for secondary and tertiary cooperatives that provide financing assistance to their members and for cooperative banks and rural banks which subscribe to a triple bottom line investment. We believe in sowing the seeds of social enterprises to reach as many beneficiaries as possible. The AMPs aim to help our partners enhance their financial sustainability while contributing in nurturing other social enterprises and increasing local economic activities in various locations.

The placement of investments in formal financial institutions and to tertiary and secondary cooperative federations aims to promote partnership on the basis of strategic objectives in line with local economy development. Together with FSSI, the partner institutions may form a local investment consortium for particular Local Economy Development (LED) areas.

AMPs consist of CFI Wholesale Loan, Developmental Deposit, Guarantee and Fund Syndication.

Community Financial Institution (CFI) Wholesale loan - is extended to a secondary/tertiary cooperative federation for relending to their member cooperatives. Recipients of

the CFI Wholesale loan should demonstrate sound financial fundamentals with a level

of risk that may be considered low to very low. Maximum credit line amount is set at 5% of FSSIs investible funds. Validity and maturity per drawdown is up to

three years.

Developmental Deposit - aims to strengthen the capacity of Community Financial Institutions (CFIs) in mobilizing savings and increasing their capacity to provide credit to poor communities. Recipients are CFIs, specifically, cooperative banks, cooperative federations, rural banks and thrift banks that demonstrate sound financial fundamentals and with a level of risk that may be considered very low. Deposit placement is from one year to three years at a negotiated interest rate.

Guarantee - aims to help CFIs in providing loans to micro and small enterprises without insufficient funds or collateral. Under a specified arrangement, the CFI man-ages the guarantee fund and uses its earnings to cover the risk of the unsecured loan. The terms of guarantee is renegotiated and renewed annually.

EquityFSSI may contribute equity in an enterprise representing common or preferred shares. Equity investment may be considered a form of leverage intervention to support a particular project that may have a strategic role and con-tribution in promoting social enterprises in a given sector or geographical area.

Fund SyndicationFund syndication is a pooling of funds by a group of donors or investors who work together to help fund a project or a business venture. FSSI participation in fund syndication may be in the form of grant, equity, guarantee or loan, or a combination of these financing services.

Grants

Grant assistance is provided to Civil Society Organizations (CSOs) and CSO-based social enterprises that are involved in initiatives towards poverty reduction, promotion of social justice and improvement in economic welfare of the poor and marginalized sectors.

The facility has three windows, namely, start-up enterprise grant, capacity building, and advocacy grant.

Start-up Enterprise Grant Start-up Enterprise Grant is intended to support CSO initiatives in setting-up social enterprises owned or partly owned by marginalized social sectors in selected focus areas. The grant can be used to partially cover the initial capital assets acquisition and working capital requirement of the enterprise. Maximum grant amount is Php 1,500,000.00.

Capacity Building GrantCapacity Building Grant is intended to support enhancement of effectiveness and efficiency of social enterprises that are fully or partly owned by marginalized social sectors and their host communities. Maximum grant amount is Php 500,000.00. The grant can be used to partially cover the cost of the following activities:

- business planning and management- research and Development- market development- organizational development- competency enhancement at the enterprise level - community skills training

Advocacy GrantAdvocacy Grant is intended to support advocacy projects working on the following themes:

- Social entrepreneurship - Climate change adaptation and mitigation - Sustainable production - Alternative/renewable energy - Value chain development in specific industry or sector - Gender mainstreaming in enterprise and value chain - Patronage of products and services of social enterprises

Advocacy grants maybe extended to both national and local initiatives.

Maximum grant for advocacy is Php 300,000.00

Eligibilities for Start-up Enterprise & Capacity Building Grants - Cooperatives located in focus areas - Non-government organization located in focus areas - Peoples organizations located in focus areas

Eligibilities for Advocacy Grant - Non-government organizations - Peoples organizations - Academe