The Aquaculture Value Chain Financing Program ACPC-Funded (AVCFP-ACPC Funded) aims to provide comprehensive support to micro and small enterprises and cooperatives in the aquaculture sector by improving credit access at every stage in the value chain, i.e., input supply, production, processing, and marketing, to increase the competitiveness of the entire industry.
Eligible Borrowers
Micro and Small Enterprises, Cooperatives including start-up fish farm operators duly registered with Securities and Exchange Commission (SEC), Department of Trade and Industry (DTI), or Cooperative Development Authority (CDA)
Eligible Loan Purpose
To finance any or combination of the following:
1. Working capital requirement;
2. Pond and aquafarm development and/or improvement, including fixed assets acquisition and installation/ establishment of other support facilities;
3. Seaweeds and carrageenan production, processing and marketing.
Eligibility Criteria
The borrower must meet the following:
1. Duly registered with the SEC, DTI, or CDA;
2. Preferably with approved contract agreement with an anchor firm, e.g. DBP-Partner Integrator, reputable institutional buyer, processing/canning company;
3. No adverse unresolved findings in relation to Credit Investigation (CI) and Watchlist Validation (specifically charges of unlawful activities); and
4. Financial ratios:
a. Debt Service Cover of at least 1x
b. Debt to Equity Ratio of 80:20
- ➤For existing business, financial ratios should be based on last three (3) years of operations.
- ➤For start-up enterprises, financial ratios should be based on the financial projections of the proposed project subject to financing.
Credit Facility
Term loan/Credit Line
Loanable Amount
Up to 90% of the Total Project Cost (TPC) with a minimum loanable amount of Php 5.00 million but not to exceed Php 15.00 million
Loan Tenor
Term Loan – Maximum of ten (10) years based on projected cash flow, inclusive of up to two (2) years grace period
Credit Line – via 180-day Promissory Note (PN). Rollover may be allowed but not to exceed 360 days from original release date subject to at least 10% clean up
Interest Rate
Term Loan – Two percent (2%) per annum. Gross Receipts Tax (GRT) for the account of the borrower.
Credit Line – No interest
Service Fee
One-time service fee of 3.50%, computed based on the approved loan amount, payable upfront or to be deducted from the initial loan release. GRT for the account of the borrower.
Repayment Terms
Term Loan – Payable monthly, quarterly, or semi-annually depending on the cash conversion cycle
Credit Line – Payable at maturity date
GRT for the account of the borrower.
Loan Securities / Collateral
Any or combination of the following, as applicable/case-to-case basis:
1. Assignment of proceeds from insurance/ surety/guarantee coverage acceptable to DBP
2. Assignment of inventory and 100% receivables arising from the contract/agreement with the anchor firm via execution of Security Agreement for Intangible Assets (SAFIA)
3. Other security arrangements acceptable to DBP
Mode of Release
Loans may be released on a staggered or lumpsum basis depending on the financed project
Availment Period
One (1) year from the date of approval
Other Fees
The following fees shall be for the account of the borrower, as applicable:
a. Appraisal Fee (amount to be provided by PACID/PACIFT)
b. Documentary Stamp Tax (DST)
c. Other loan-related expenses
Documentary Requirements
The borrower shall submit the following:
1. DBP Agricultural & Fisheries Enterprise Loan Application Form and other Bank Forms;
2. Certified True Copy of Certificate of Registration from SEC/DTI/CDA;
3. Bio-data of incumbent officers and Board of Directors with government-issued ID, as applicable;
4. Board Resolution authorizing the organization to borrow and designating authorized signatories, as applicable;
5. Audited Financial Statement and latest interim financial statement, as applicable;
6. Current year Business Permit;
7. Certified True Copy of Articles of Incorporation/Cooperation and By-Laws, as applicable;
8. Latest General Information Sheet and/or additional documents to fully establish beneficial owners of the legal entity, as applicable; and
9. Endorsement Letter/Commitment Letter/Notice of Approval/Contract Growing Agreement from Anchor Firm
Requirements on the Project Site
The following shall be required, as applicable:
1. If project site is with clean title and under the name of the borrower:
Pre-Release Requirements:
a. Unregistered Real Estate Mortgage
b. Updated Real Property Tax Payment
c. Tax Declaration
2. If project site only has Deed of Absolute Sale under the name of the borrower:
Pre-Release Requirements:
a. Deed of Undertaking to submit the TCT in the name of the borrower
b. Copy of the TCT in the name of the previous owner
c. Deed of Absolute Sale
d. Updated Real Property Tax Payment
e.Tax Declaration
f. Proof of Filing of Certificate Authorizing Registration (CAR)
Post-Release Requirements:
a. Owner’s duplicate copy of the TCT in the name of the borrower
b. Unregistered Real Estate Mortgage
c. Tax Declaration in the name of the borrower
3. If the project site is subject to a lease agreement:
Pre-Release Requirements:
a. Lease Agreement
b. Proof of ownership of the lessor e.g., title, deed of absolute sale, tax declaration
c. Assignment of Leasehold Rights
d. Annotation of the title to state the assignment of leasehold rights
4. If project site is owned by a third party, the Unregistered Third-Party Real Estate Mortgage shall be submitted as pre-release requirement.
Contact Details
For more information, please contact:
Program Development and Management II Department
Tel No.: (02) 8818 – 9511 local 2330/2329/2349
Email: pdm2@dbp.ph / pdm2-lpdu@dbp.ph
Please note that submission of additional documents may be required, depending on the evaluation of the Lending Center.