Value Chain Financing
Value Chain Financing for Collective Rural Social Enterprises (CRSEs) is a financing window for micro, small and medium social enterprises that are into sustainable agriculture and/or agribusinesses preferably in Organic Rice, Muscovado Sugar, Seaweeds, Coffee or Coco-sugar.
Collective Rural Social Enterprises (CRSEs) are organizations: a) owned or controlled by the marginalized sectors (i.e. poverty groups); b) organized for profit; c) managed in a financially-sustainable and socially-responsible manner; and, d) engaged in the processing or marketing of products/goods using sustainable technologies.
RETAIL LOANS
- Loans extended directly to CRSE’s
- Eligible Enterprises/Organizations
- Cooperatives
- For profit-corporations (social enterprises)
- Priority industries/sub-industries?
- Organic Rice
- Muscovado Sugar
- Seaweeds
- Coffee
- Coco-sugar
- Loan Amount
- Between Php500,000 to Php1.5M
- Purpose of Loan
- Permanent Working Capital
- Equipment (i.e. rice mil, muscovado/coco-sugar mill, packaging equipment and brand-new vehicles for deliveries/hauling of products)
WHOLESALE LOANS
- Loans extended to CRSEs through eligible partner organizations engaged in financial intermediation
- Eligible Enterprises/Organizations
- Cooperatives
- Non-government organizations (NGOs)
- Priority industries/sub-industries?
- Organic Rice
- Muscovado Sugar
- Seaweeds
- Coffee
- Coco-sugar
- Loan Amount
- Between Php5M to Php15M for on-lending to eligible social enterprises (i.e. wholesaler’s sub-borrowers)
- Purpose of Loan
- Permanent Working Capital
- Equipment (i.e. rice mil, muscovado/coco-sugar mill, packaging equipment and brand-new vehicles for deliveries/hauling of products)
GUARANTY
- Financial guarantee of eligible loans extended to CRSEs by eligible partner organizations
- Eligible Enterprises/Organizations
- Cooperatives
- Non-government organizations (NGOs)
- Priority industries/sub-industries?
- Organic Rice
- Muscovado Sugar
- Seaweeds
- Coffee
- Coco-sugar
- Amount of Guaranty
- 70% of eligible loans (e.g. social enterprise loan for working capital and/or equipment) of a qualified organization of up to Php5M on the aggregate and Php1.5M per loan
EQUITY
- Investments in eligible CRSEs in exchange for partial ownership and control
- Eligible Enterprises/Organizations
- For profit-corporations (social enterprises)
- Priority industries/sub-industries?
- Organic Rice
- Muscovado Sugar
- Seaweeds
- Coffee
- Coco-sugar
- Amount of Investment
- Between 20% and 49% of the paid-up shares of stocks of the investee social enterprise (inclusive of the PDAP shares) but in no case shall exceed Php5M.
Interested enterprises/organizations may send their applications online. For more details, you may contact us through email at pdap@pdap.net/ info@pdap.net.