Credit Delivery Strategy

​Small Business Corporation extends credit assistance to micro, small and medium-sized enterprises (MSME) through its Credit Delivery Strategy.

This Strategy is anchored on our belief that the MSME sector, as the backbone of the Philippine economy, needs to be placed in a sort of “incubator” where their particular financing needs are addressed through credit interventions customized to their growth potentials.

SBC envisions that its “micro-sized” borrower will soon grow into a small-sized business enterprise and eventually into a medium-sized enterprise ready to access the formal financing sector and compete in the global market.

Under this Strategy, we operate four financing programs.

First is the microfinance wholesale lending program. Through this program, we conduit funds to our 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.)

Our microfinance wholesale facilities aim to bring credit financing to enterprises at the grassroots and transform them into growing and full-blown, formal enterprises.

Our second financing program involves direct lending 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.

Our third financing program is the credit guarantee program, which 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.

Finally, our fourth financing program is the 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.