The DBP Strategic Healthcare Investment for Enhanced Lending & Development (SHIELD) program supports the Philippine Development Plan that aims to improve access to health services and the United Nations Sustainable Development Goal No. 3 – Good Health and Well-being, which aims to “Achieve universal health coverage, including financial risk protection, access to quality essential health-care services and access to safe, effective, quality and affordable essential medicines and vaccines for all”.
Program Objectives
- To be a catalyst in making the healthcare system more responsive and accessible to the people.
- To extend credit financing to healthcare enterprises to ensure sustained operations and provide better healthcare services to the Filipino people.
Eligible Borrowers
- Public & Private-owned hospitals and/or other healthcare facilities (all levels/classification)
Eligibility Requirement
- Borrower’s management team or key officer/s must have an experience or track record in the management of hospital and other healthcare business operation for at least three (3) years.
- Borrower’s identified Hospital Administrator must already have completed the degree and with relevant experience in hospital administration prior to loan approval.
Eligible Projects
- Development and construction of hospitals and other health care facilities including dental clinics, diagnostic laboratories, birthing centers, pharmacies
- Renovation, expansion works for health care facilities
- Modernization/updating of health facilities/systems, including IT infrastructure
- Acquisition/leasing of health care equipment
- Working capital requirement of health care institutions
- For the purchase of healthcare facility inventory/Purchase Orders (POs)
- Finance receivables from PhilHealth, HMOs, Corporate Clients, etc.
- Finance healthcare facility’s operations
Interest Rate
Based on the bank’s applicable benchmark rate plus credit spread
Loan Term
Loan Amount
- For LGU/Government-owned and/or financed projects – Up to 100% of Total Project Cost or winning bid, whichever is lower.
- For privately-owned health facilities and other eligible borrowers – Up to 70% of Total Project Cost/Purchase Order/Operational Requirement
Other Conditions
- Opening of bank account with DBP where loan proceeds and other loan related transactions shall be credited/debited.For those with working capital loans, borrower’s account with DBP shall be made as the designated deposit account for the HCI’s benefit refund from Philhealth.
- Acceptable Collaterals
- For LGU Borrowers – Deed of Continuing Assignment of LGU’s Deposit in favor of DBP with hold-out and control agreement
- For Non-LGU Borrowers
- Real Estate Mortgage (REM) to include the project being financed.
- Security Agreement for movable assets, to include the equipment being financed.
- Hold-out on Deposit with hold-out and control agreement, equivalent to at least three (3) months or one (1) quarter amortization
- Joint and Several Signature (JSS)
- Corporate Surety of the Parent/flagship company for conglomerates/group of companies
- Other acceptable collateral/security to DBP per relevant bank policy may be required based on the assessment of the lending unit
Basic Documentary Requirements
- DBP Application Letter or Letter of Intent to Apply for a Loan
- DBP Customer Information File Form (Exhibit 2)
- Duly-accomplished Confidential Information Sheet (CIS) of individual applicants/partners -for single proprietorship & partnership
- For Private Institutions
- Business Registration secured from DTI/SEC/CDA
- Business Permit issued by the LGU
- Brief write-up about the company (i.e. Background, Management and Organization, Key Officers, Market, Project description, List of affiliates/subsidiaries/related companies)
- Latest SEC General Information Sheet (GIS)
- Copy of Articles of Incorporation and By-Laws with amendments, if applicable
- Board Resolution and Secretary’s Certificate authorizing the loan
- Financial Statements (FS) for the last three (3) years (audited by a SEC-accredited external auditor and submitted to the BIR) of the borrower and its related companies (subsidiaries and affiliates), solo and consolidated, if applicable
- Latest in-house/interim FS of the borrower and its related companies, solo and consolidated, if applicable
- Copy of latest Income Tax Return (ITR) of the borrower duly stamped received by BIR
- Valid IDs of the borrower/mortgagor/third party mortgagor/surety/guarantor
- Copy of Statement of Assets and Liabilities (SALN) of Joint and Solidary Signature (JSS) parties
- Waiver of confidentiality of client information and/or an authority of the Bank to conduct random verification with the BIR in order to establish authenticity of the ITR and accompanying financial statements submitted by the client (DBP Form), if applicable
- Authority to provide and obtain credit information to/from credit bureaus and other banks/creditors
- List of referred creditors, stating name of institution, amount, date approved, maturity/expiry date, collateral and outstanding principal balance, if applicable
- List of referred trade suppliers, if applicable
- For LGUs
- Brief write-up about the LGU which covers areas such as, but not limited to, the following: 1. LGU history/geographical location/classification; 2. Socio-economic profile; 3. Members of the Sangguniang Panlalawigan/Panlungsod/Bayan/Barangay
- Copy of LGU’s Comprehensive Development Plan (CDP) and Annual Investment Plan (AIP)
- COA-Audited Financial Statements of the LGU for the last three (3) years for Province, City, Municipal, and Barangay. (For Barangays with unaudited FS, the latest unaudited FS may be accepted provided it is stamped received by COA)”
- Borrowing Resolution passed by the appropriate Sangguniang Panlalawigan/ Panlungsod/Bayan/Barangay expressly authorizing the Local Chief Executive Officer to negotiate and enter into a loan contract with the Bank
- For Private Institutions
For more information, please contact:
Program Development and Management I Department
Tel. Nos.: (02) 8818-9511 local 2379
E-mail: pdm1@dbp.ph