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Program Type:

Credit Program

Status: Published

Created: Not Indicated

Updated: Not Indicated

Implementing Unit: DBP
Description
The DBP Coconut Farmers and Industry Development (CFID) Credit Program aims to increase the productivity and income of Filipino coconut farmers. This program supports the development of the Philippine coconut industry through enterprise diversification and financing of projects related to the coconut value chain.
Geographic Coverage
No Geographic Coverage Specified
Assistance Type
Eligible Borrowers Projects related to the coconut value chain Establishment of intercrops and/or poultry/livestock integration in coconut farms Eligible Loan Purposes Coconut Farmer Enterprises Acquisition of machineries and equipment Establishment of facilities for production and postproduction, processing, and trading, including but not limited to facilities for poultry and livestock integration Coconut Farmers Cooperatives and Organizations Working Capital requirements Acquisition of machineries and equipment Establishment of facilities for production and postproduction, processing and trading, including but not limited to facilities for poultry and livestock integration Relending and rediscounting to NCFRS-listed coconut farmers for the same abovementioned purposes and projects Types of Facility Short-Term Loan Term-Loan Minimum Loanable Amount Minimum loan amount is Php15-million For project financing: Up to 90% of the total project cost For relending: Up to 90% of the total project cost For rediscounting: Up to 90% of the face value of the sub-Promissory Note (PN) or its outstanding balance in current status, whichever is lower Term Short-Term Loan: Within 360 days payable monthly, quarterly, or semi-annually depending on cash conversion cycle Term Loan For acquisition of fixed asset/s: Shall be up to 7 years, inclusive of up to 2 years grace period on the principal repayment, based on the projected cash flow but no longer than the useful economic life of the fixed asset/s For establishment of facility/ies: Shall be up to 10 years, inclusive of up to 3 years grace period on the principal repayment, based on the projected cash flow of the project For relending/rediscounting: Based on the earliest maturity of the sub-borrowers’ PNs submitted per batch Interest Rate The interest rate of the loan shall be based on the source of funding: CFITF Portion: 0% per annum (p.a.) DBP Portion: based on BVAL plus equivalent minimum credit spread Fees, Other Charges and Penalty Rate Documentary Stamp Tax and Gross Receipts Tax shall be charged as applicable Penalty Rate shall be as follows:
Document Requirements
Documentary Requirements
Coconut Farmer Enterprises
• DBP Loan Application Forms
• Proof of NCFRS enlistment
• Photocopy of Certificate of Registration from the DTI/SEC
• Certificate of Accreditation from PCA
• Audited Financial Statements for the last year; or latest Interim Financial Statements for start-ups
• Business Plan, if applicable
• Current year Business Permit; and
• Training Certificate from an accredited provider (e.g., TESDA, DA-ATI) on financial literacy and on projects related to the coconut value chain

Coconut Farmers Cooperatives and Organizations
• DBP Loan Application Forms
• Photocopy of Certificate of Registration from the CDA/SEC
• Certificate of Accreditation from PCA
• Certificate of Compliance from CDA, if applicable
• Certificate of Tax Exemption, if applicable
• Copies of Articles of Incorporation/Cooperation and By-Laws
• Bio-data of incumbent Officers and Board of Directors with photocopy of valid government issued ID
• Board Resolution authorizing the Cooperative/ Organization to borrow and designating the authorized signatories
• Audited Financial Statements for the last year; or latest Interim Financial Statements for start-ups
• Business Plan, if applicable
• Current year Business Permit; and
• Training Certificate of the cooperative and its key officers from an accredited provider (e.g., TESDA, DA-ATI) on financial literacy and on projects related to the coconut value chain