Swine Repopulation, Rehabilitation and Recovery (Swine R3) Credit Program

The Swine Repopulation, Rehabilitation and Recovery (Swine R3) Credit Program is a credit window to support the national government’s efforts in the recovery and repopulation of the local swine industry through financing of bio-secured farm projects.

For Medium and Large Scale Projects

Eligible Borrowers

• • Duly registered private enterprises
  • Local government units (LGUs)

Eligible Criteria

• • Asset Size
    • Commercial swine breeder and wean to finish farm projects with no lease agreement/contract with DBP-partner integrator – At least P100 Million
    • Other eligible swine farm projects – At least P20 Million
  • No adverse findings on the organization and its principals
  • Profitable operations for at least three (3) years
  • Classified as Level I bio-secured swine farm
  • Has undergone training on biosecurity management

Applicable to LGUs: Items iv & v only.

Loan Purpose

Construction of bio-secured swine farm projects including farm machineries and equipment.

Eligible Projects

• • Swine Breeder Farm
    • Swine Contract Breeding Farm Projects with DBP-partner integrator
    • Swine Breeder Farm with lease contract agreement with DBP-partner integrator
    • Commercial Swine Breeder Farm
  • Swine Wean to Finish Farm
    • Swine Contract Growing Projects with DBP-partner integrator
    • Wean to Finish Farm with lease contract agreement with DBP-partner integrator
    • Commercial Wean to Finish Farm
  • Consolidated Swine Facility Projects

Loan Amount

• Corporations and cooperatives – Up to 70% of total project cost
• Local government units – Up to 100% of total project cost

Credit Facility

• Term Loan

Tenor

• Maximum of ten years

Grace Period

• Maximum of two years

Interest

• Prevailing market rate

Modes of Payment

• • Monthly amortization – Swine Farm Project with lease contract agreement with DBP-partner integrator (Breeder Farm/Wean to finish Farm)
  • Semi-annual, trimestral, quarterly amortization – Other eligible swine farm projects

Loan Security/Collateral

• 1. Real estate mortgage
  2. Chattel mortgage
  3. Insurance or guarantee coverage endorsed in favor of DBP (e.g. PCIC)
  4. Continuing suretyship or co-makership
  5. Assignment of IRA with hold-out on deposits equivalent to 1 average amortization
  6. Hold-out on deposit
  7. Assignment of receivables
  8. Other security arrangements acceptable to DBP

Basic Documentary Requirements

• 1. Letter of Intent;
  2. Data Privacy Consent Form,
  3. Brief Company Profile,
  4. Loan Application Form,
  5. Endorsement/Notice of Approval from Integrator;
  6. Photocopy of Certificate of Registration or Clearance from concerned government agency;
  7. Bio-data of incumbent officers and Board of Directors with ID;
  8. Proof of opening of CASA with DBP
  9. If applicable, Board Resolution authorizing the organization to borrow and designating authorized signatories;
  10. Audited Financial Statement for the last year; or, latest interim financial statement, if applicable;
  11. Current year Business Permit;
  12. Photocopy of Articles of Incorporation/Cooperation and By-Laws.
  13. Certification from DA RFO TWG on Swine Recovery, Rehabilitation and Repopulation created under Section 7 (DA AO No. 6 s. 2021) stating that the borrower has complied with all the requirements and is allowed to restock at full capacity, if applicable.
  14. Certificate of Free Status on African Swine Fever (CFS ASF) is only applicable for ASF infected areas or the Red Zones and Pink or Buffer Zones. Movement of animals from the ASF-free or Green Zones are not restricted hence they are not required to secure CFS-ASF (Section 7, DA AO No. 7 s. 2021).
  15. Certification or any similar document from reputable trainors (DA – ATI / BAI, integrators, feed companies, TESDA) that borrower has undergone training on biosecurity management.
  16. Notice of Approval from Integrator, if applicable.
  17. Lease agreement with integrator, if applicable.
  18. Environmental Compliance Certificate (ECC) or Amended ECC
  19. Designated Pollution Control Officer (PCO) if there is no Accredited PCO
  20. Perfection of loan documents

For Small Scale Projects

Eligible Project

• • Swine Contract Growing Projects with DBP-partner integrator

Eligible Borrowers

• • Small Business Enterprises including start-up commercial hog raisers duly registered with SEC, DTI, DOLE or CDA.

Loan Amount

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

Credit Facility

• • Term Loan

Tenor

• • Maximum of eight (8) years

Grace Period

• • Maximum of two (2) years

Service Fee

Service fee of 3.50% per annum fixed for the entire term of the loan.

For the 1st year or during releasing stage, payment of service fee shall be based on the amount of release payable upfront or deducted from loan proceeds.

For the succeeding years, service fee shall be based on the outstanding principal balance to coincide with the principal payment.

Modes of Payment

• • Semi-annual, trimestral, or quarterly amortizations.

Loan Security/Collateral

• 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 integrator
  3. Continuing suretyship (JSS) or co-makership
  4. Hold-out on deposit
  5. Other security arrangements acceptable to DBP

Mode of Release

• • Staggered/Lumpsum

Other Fees

Shall be for the account of the borrower:

• 1. Appraisal Fee, if applicable
  2. Documentary Stamp Tax (DST) (subject to gross up if borrower is tax exempt)
  3. Gross Receipt Tax (GRT)
  4. Other related expenses. e.g. Mortgage Registration, Realty Taxes, etc.

Documentary Requirements

• 1. Letter of Intent;
  2. Data Privacy Consent Form
  3. Brief Company Profile
  4. Loan Application Form
  5. Endorsement/Notice of Approval from Integrator
  6. Photocopy of Certificate of Registration or Clearance from concerned government agency;
  7. Bio-data of incumbent officers and Board of Directors with ID
  8. If applicable, Board Resolution authorizing the organization to borrow and designating authorized signatories
  9. Audited Financial Statement for the last year; or, latest interim financial statement, if applicable
  10. Current year Business Permit
  11. Photocopy of Articles of Incorporation/Cooperation and By-Laws
  12. Certification from DA RFO TWG on Swine Recovery, Rehabilitation and Repopulation created under Section 7 (DA AO No. 6 s. 2021) stating that the borrower has complied with all the requirements and is allowed to restock at full capacity, if applicable.
  13. Certificate of Free Status on African Swine Fever (CFS ASF) is only applicable for ASF infected areas or the Red Zones and Pink or Buffer Zones. Movement of animals from the ASF-free or Green Zones are not restricted hence they are not required to secure CFS-ASF (Section 7, DA AO No. 7 s. 2021), if applicable. Opening of CASA with DBP
  14. Opening of  CASA with DBP
  15. Environmental Compliance Certificate (ECC) or Amended ECC
  16. Designated Pollution Control Officer (PCO) if no accredited PCO
  17. Letter of Approval with specific capacity issued by integrator.
  18. Term Loan Agreement with the borrower
  19. Written Notice to Integrator on the assignment of borrower’s receivables from the contract growing agreement duly received/acknowledged by the integrator

For inquiries, feel free to contact:

Aaron Ashley Diaz
Program Development and Management II Department
(02) 818-9511 local 2330
aaddiaz@dbp.ph