The Sustainable Agribusiness Financing Program (SAFP) provides credit for agribusiness projects engaged in the production, harvest, processing, and marketing of crops, poultry, livestock, and fishery as well as other agricultural plantation projects.
Eligible Borrowers
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- Business Entities duly registered with Security and Exchange Commission (SEC), Department of Trade and Industry (DTI), Department of Labor and Employment (DOLE), Cooperative Development Authority (CDA); and
- Local Government Units (LGUs)
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Eligible Loan Purpose
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- Agri-related project development, expansion, acquisition of fixed assets, capital expenditure and working capital
- Agricultural Production Loan
- Permanent Working Capital
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Eligible Projects
Loans shall be utilized to finance the cost of agri-business projects including but not limited to the following:
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- Livestock and Poultry
- Aquaculture and Fishery Operations
- Fruits, Vegetable and High Value Commercial Crops Production
- Post-Harvest Operations/Food Processing
- Farm Integration and Diversification
- Plantation Projects
- Agricultural Trading
- Manufacturing and distribution of farm machinery, equipment and supplies
- Acquisition and development of land as project site
- Other Agri-related Businesses
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Loans shall be utilized to finance the cost of Plantation Projects, including but not limited to:
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- Plantation development
- Plantation Expansion
- Plantation maintenance and protection
- Acquisition of pre-harvest and post-harvest facilities e.g. processing plant, kiln
- Harvesting of mature species
- Establishment of Facilities e.g. Lookout tower, bunkhouse, water system, fire lines
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Loanable Amount
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- For regular loans, loan amount shall be up to maximum of 90% of the Total Project Cost (TPC).
- For Plantation Projects, loan amount shall be up to 80% of the Total Project Cost
- For Livestock and Poultry Projects that have contracts/agreements with integrators and plantation projects, loan amount shall be up to maximum of 80% of TPC.
- For LGUs, up to 90% of TPC or winning bid price, whichever is lower.
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Loan Tenor
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- Term Loan – shall be based on the project cycle and projected cash flow as determined by DBP but shall not exceed fifteen (15) years, inclusive of grace period. Progress and/or balloon payment on principal and interest may be allowed.
- Credit Line – shall be based on the cash conversion cycle but not more than 360 days.
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Mode of Payment
Monthly, quarterly or semi-annual amortizations depending on cash flow of the project.
Interest Rate
Prevailing market rate
Grace Period
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- Maximum of three (3) years for projects with short gestation period.
- Maximum of seven (7) years for projects with long gestation period.
- Up to 2 years for Livestock and Poultry Projects that have contracts/agreements with integrators.
- For plantation projects, must be aligned with the grace period for specific agricultural projects stipulated in the Manual of Regulations for Banks (MORB).
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Collateral Security
Any or combination of the following:
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- Real estate mortgage;
- Chattel mortgage;
- Assignment of Insurance/Surety/Guarantee Coverage acceptable to DBP
- Assignment of supply contract/ receivables;
- Continuing Suretyship (JSS) or Co-makership;
- Hold-out on deposit;
- For LGUs- Deed of Assignment of specified portion of IRA; or
Documentary Requirements
Basic Requirements
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- Letter of Intent;
- DBP Application Forms;
- Business Registration Documents
- Project Brief/Business Plan (if applicable)
- Other documents that may be necessary in loan evaluation
SAFP Sub-Program:
Sustainable Agribusiness Financing Program for the Dairy Industry (SAFP-DAIRY)
For inquiries, feel free to contact:
Rallen O. Verdadero
Head
Program Development and Management II Department
(02) 8818-9511 local 3327
roverdadero@dbp.ph
Aaron Ashley Diaz
Program Officer
Program Development and Management II
(02) 818-9511 local 2330
aaddiaz@dbp.ph