Swine Repopulation, Rehabilitation and Recovery (Swine R3) Credit Program (National Government Funded Loans)

The Swine Repopulation, Rehabilitation and Recovery Credit Program (National Government Funded Loans) is a credit window that supports the National Government’s efforts in the recovery and repopulation of the local swine industry through financing of biosecured smallscale farm projects that will contribute to ensuring the availability of pork and pork products in the market.

Eligible Borrowers

Small business enterprises including start-up commercial hog raisers duly registered with SEC, DTI, or CDA

Eligibility Loan Purpose

To finance the establishment of biosecured swine wean-to-finish farm or consolidated swine facility covered by contract growing agreement with a DBP Partner Integrator, including acquisition of machineries and equipment

Eligible Projects

Swine Contract Growing Projects with DBP-Partner Integrator

Loanable Amount

Up to 90% of total project cost with minimum loan amount of Php5-million but not to exceed Php15-million

Loan Tenor

Maximum of ten years

Grace Period

Maximum of two years

Mode of Payment

Semi-Annual

Loan Security/Collateral

• • Security Agreement for Intangible Assets in the amount equivalent to at least 150% of the loan/
    line or 100% of receivables arising from the agreement with the DBP-Partner Integrator
  • Applicable insurance coverage endorsed in favor of DBP

Additional Conditions/Requirements on the Project Site

The following shall be required as applicable:

1. 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 Transfer Certificate of Title (TCT) in the name of the Borrower and to mortgage the property in favor of the Bank
        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)
        g. Electronic Primary Entry Book (EPEB) evidencing TCT to the name of the Borrower
      • 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:
      • Pre-Release Requirement
        Unregistered Third Party Real Estate Mortgage

Minimum Documentary Requirements

Pre-Approval

• 1. DBP Customer Loan Forms
  2. Bio-data of incumbent officers and Board of Directors with ID, if applicable
  3. Previous year/s Audited Financial Statement; or latest Interim Financial Statement, if applicable
  4. Current year Business Permit
  5. Certified True Copy of Articles of Incorporation/Cooperation and By-Laws, if applicable
  6. Endorsement Letter/ Commitment Letter/ Notice of Approval/ Contract Growing Agreement from
     Integrator

Specific Requirements for Corporations

1. 1. Certified True Copy of SEC Certificate of Registration
   2. Certified True Copy of Articles of Incorporation and By-Laws
   3. Latest General Information Sheet and/or additional documents to fully establish beneficial owners of the legal entity
   4. Board Resolution duly certified by the Corporate Secretary, or equivalent document (e.g. Secretary’s Certificate), authorizing the business relationship and the signatory to sign in behalf of the entity
   5. Copies of one (1) valid government ID of the designated signatories

Specific Requirements for Cooperatives

1. 1. Certified True Copy of CDA Certificate of Registration
   2. Certified true Copy of Articles of Cooperation and By-Laws
   3. List of shareholders/cooperative membership and their shareholdings and/or additional documents to fully establish beneficial owners of the legal entity
   4. Board Resolution duly certified by the Corporate Secretary, or equivalent document (e.g. Secretary’s Certificate), authorizing the business relationship and the signatory to sign in behalf of the entity
   5. Copies of one (1) valid government ID of the designated signatories

Pre-Release

1. 1. Duly executed term sheet/term loan agreement
   2.  Letter/Certification from the Bureau of Animal Industry stating that:
      • The farm is in an area where there have been no recorded cases of African swine fever for more than 90 days; and
      • The farm has at least a Biosecurity Level 1 Classification
   3. Environmental Compliance Certificate (ECC) or Amended ECC
   4. Accredited Pollution Control Officer (PCO) Certificate or Designated PCO if yet to be accredited
   5. Written Notice to Integrator on the assignment of borrower’s receivables form the contract growing agreement duly received/acknowledged by the partner-integrator
   6. Security Agreement for Intangible Assets in the amount equivalent to at least 150% of the loan/ line or 100% of receivables arising from the agreement with the DBP-Partner Integrator
   7. Contract Growing Agreement with DBP-Partner Integrator
   8. Proof of opening of DBP deposit account which will be used for the direct crediting of payments
      from the DBP-Partner Integrator
   9. Continuing Authority to Debit for DBP
   10. Other required securities and/or collaterals

Download Brochure (SWINE R3 National Government Funded Loans)

For more information, please contact:

Aaron Ashley D. Diaz
Project Development Officer
Program Development and Management II Department
(02) 8818-9511 local 2330
E-mail: aaddiaz@dbp.ph