The Small Business Corporation

On May 23, 2008, RA 9501 or “An Act to Promote Entrepreneurship by Strengthening Development and Assistance Programs for Micro, Small and Medium Scale Enterprises was signed into law amending for the purpose RA 6977.

Section 11 of RA 9501 states the … “Creation of Small Business and Guarantee Finance Corporation – There is hereby created a body corporate to be known as the Small Business and Finance Corporation, hereinafter referred to as the Small Business Corporation (SB Corp), which shall be charged with the primary responsibility of implementing comprehensive policies and programs to assist MSMEs in all areas, including, but not limited to finance and information services, training and marketing.”

SB Corp is the result of the merger between the Small Business Guarantee and Finance Corporation (SBGFC) and the Guarantee Fund for SMEs (GFSME), under Executive Order No. 98 issued in November 2001. SB Corp’s focus is to provide access to finance, financial management and capacity building to MSMEs. It has several programs for the MSME market: wholesale lending to smaller financial institutions, cooperatives and foundations; retail or direct lending to micro, small and medium enterprises (MSMEs); and guarantee programs for larger banks to cover MSME loans without collateral or with insufficient collateral. SB Corp also provides financial management and capacity building for rural banks (RBs) with its (SB Corp) Borrower Risk Rating (BRR) System program.

Programs and Program Beneficiaries

Small Business Corporation envisions becoming the leader in small enterprise development financing and small credit delivery systems nationwide. The Corporation has focused on developing an appropriate mix of financing products that are responsive to the needs of SMEs in the country.

Over the years, the Corporation has evolved its product line from generic credit and credit enhancement facilities—catering to both nearly bankable SMEs and small banks in need of liquidity support—to more evolved lines that focused the financing facilities to specific products and/or sectors.

The Corporation's credit facilities includes wholesale and retail lending programs, which targets banks engaged in MSME lending, and pre-bankable small to medium sized businesses. The credit guarantees services banks with SME accounts that need additional collateral cover.

The Corporation also provides capacity building programs for banks and MSME clients. Training programs varies from computerized accounting and enterprise development training for MSME's to Risk-based lending to SMEs for financial institutions.

1. Wholesale lending for SMEs.

Wholesale funds are coursed through or “conduited” to our partner banks and institutions for re-lending to “already bankable” SMEs.

Our Wholesale lending facilities can be accessed by SMEs by applying for SME loans through our partner banks and institutions.

2. Microfinance Wholesale Lending Program

Open to partner rural banks, microfinance institutions, and cooperatives, who in turn, re -lend the funds to eligible “pre-enterprises”.

The pre-enterprises we assist include the graduating and start-up micros. (Graduating micros refer to those unregistered yet existing enterprise that are willing to register as an enterprise, have a livelihood track record as well as credit track record with a micro-finance institution, and with tangible assets. Start up micros, on the other hand, are starting enterprises that do not meet these qualifications yet.)

 

 3. MSME Retail Lending Program

Open to registered micro, small and medium enterprises (MSMEs). The program is intended to bridge the financing gap of what we refer to as the “pre-bankable but viable” MSMEs that are at the moment “unserved” by the banking system. Through this program, we hope to provide a conducive environment for MSMEs by financing their business needs, training them to get credit track record and experience, and  building up business size necessary to access bank financing in the future. Direct lending facilities are available for manufacturers, suppliers, traders, exporters, franchisers, and service providers among others.

4. Credit Guarantee Program

It provides an entry point for small and medium enterprises (SME) to the banking system. The program targets what we call “near bankable SMEs” who can access the banks but cannot provide sufficient collateral for their loan. The credit guarantee  answers this need by serving as alternative or supplemental collateral for the SME  loan.

 

Our credit guarantee facilities can be tapped by SMEs through our partner  financial institutions.

 

Ownership and Legal Status

SB Corp is a government corporation created on January 24, 1991 by virtue of Section 11 of RA No. 6977, amended on May 6, 1997 by RA 8289, otherwise known as the Magna Carta for Small and Medium Enterprises. SBGFC is under the policy program and administrative supervision of the Small and Medium Enterprise Development (SMED) Council of the Department of Trade and Industry (DTI), the primary agency responsible for small and medium enterprises in the country.

 

LIST OF STOCKHOLDERS AND STOCKHOLDINGS
As of 31 December 2015

Stockholders

 

Paid-Up

No. of Shares

Percentage

 

A. PREFERRED STOCKS

 

 

 

 

GSIS

 

200,000,000.00

 

2,000,000*

 

10.42%

SSS

 

200,000,000.00

2,000,000*

10.42%

 

 TOTAL PREFERRED STOCKS

 

400,000,000.00

4,000,000

 

B. COMMON STOCKS

 

 

 

 

GSIS

46,673,100.00

 

466,731*

 

2.43%

 

SSS

16,000,000.00

160,000*

 

0.83%

LBP

393,611,500.00

3,936,115*

 

20.50%

DBP

218,673,100.00

 

2,186,731*

 

11.39%

PNB

40,000,000.00

 

400,000

 

2.08%

National Government

804,944,300.00

8,049,443

 

41.93%

 

TOTAL COMMON STOCKS

1,519,902,000.00

15,199,020

 

 

 

 

 

TOTAL STOCKHOLDINGS

1,919,902,000.00

 

19,199,020

 

100.00%

 

Notes:

a)  GSIS, SSS, LBP, and DBP are Government Financial Institutions. PNB is a private

domestic financial institution;

b)  Par value is P100.00 per share

c) Stock certificates issued in the name of the National Government are in

custody/safekeeping of the Bureau of Treasury.

* Includes stock dividends in the form of common stocks released on 31 October 2005, 09 May 2008 and 08 April 2013.

 

 

 

Operations

 

In addition to its Head Office in Makati City, SB Corp has offices and desks offices strategically located across the Philippines:

Area

Offices

Manpower Complement

North Luzon

Northern Luzon Group

10

Isabela Desk Office

1

Dagupan Office

1

 

Tuguegarao Desk Office

1

South Luzon

Southern Luzon Group

24

Naga Desk Office

1

Legazpi Desk Office

1

Mindoro Desk Office

1

Batangas Desk Office

1

Quezon Desk Office

1

Palawan Desk Office

1

Central Luzon

Central Luzon Lending Unit

8

 

Nueva Ecija Desk Office

To be opened

Visayas

Visayas Group

15

Tacloban Desk Office

6

Bacolod Desk Office

1

Iloilo Desk Office

1

 

Bantayan Island

1

Mindanao

Mindanao Group

15

 

General Santos Desk Office

1

 

Cagayan de Oro Desk Office

1

 

Butuan Desk Office

1

 

Tagum Desk Office

1

Total

 5 area offices 17 Desk Offices

94