SB Corp Q1income up

If the first quarter lending performance of P633.861 million is any indication, Small Business Corp. (SB Corp.) is on its way to doubling its loan origination performance for the year 2004.

The loan amount released availed of by the country’s small and medium entrepreneurs (SMEs) doubled its P283.19-million performance for the same period last year.

In 2003, SB Corp. extended a record P2.3 billion in direct and wholesale lending, financing, and guarantees.

It was looking at a conservative increase to P2.5 billion this year to beyond the P3-billion level, limited only by its ability to directly fund, tap funds from multilateral agencies, or guarantee loans through private commercial banks and other financial institutions.

"We attribute the increase in our lending portfolio to the competitive interest rates of our various lending programs, liberalized accreditation process for bank partners, and aggressive marketing efforts, SB Corp. chairperson Zorayda Amelia C. Alonzo said.

From January to March this year, it released a total of P448.08 million under its Wholesale Lending Program, P129.281 million under its Retail Lending Program and guaranteed P56.5-million worth of projects under its Guarantee Program.

Under the Wholesale Lending Program, the SME-Financing Facility for Regional Markets (SME-FIRM) originated P16.02 million, SME- Funding Access for Short-Term Loans (SME-FAST) originated P428.91 million, and SME-Funding Entry-point for Entrepreneurs in Livelihood (SME-FEEL), a conduit microfinancing facility originated a total of P3.15 million.

Interest rate ranges from nine percent per annum for loans availed with a term of one year and below; 11.25percent for loans availed with a term of more than one year to three years; and 12.75percent with terms over three to five years.

SB Corp. allows microfinance partners a credit line of up to a maximum of P50 million. The microfinance institutions, in turn, re-lend the money to their microentrepreneur borrowers up to a maximum of P150,000 per sub-borrower.

Eligible investment areas under the SME-FEEL program are manufacturing, processing, trading and services.

The program has 45 accredited microfinance partners, and has lent a total of P144.6 million to various micro-finance institutions.

Meanwhile, SME-Financing for Organizationally Competent and Excellent Franchise Business (SME-FORCE) lent P6.815 million, SME-Financing for Receivables of Suppliers‚ Transactions (SME-FIRST) lent P29.5 million, SME-Guarantee Incubation for DTI-Endorsed Projects (SME-GUIDE) lent P53.935 million, SME- Financing Reach for Exporters thru Network Development (SME-FRIEND) lent P39.031 million. – TPT