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Rural Agro-enterprise Partnership for Inclusive Development and Growth (RAPID Growth)

Program Type:

Credit Program

Status: Published

Created: Not Indicated

Updated: Not Indicated

Implementing Unit: DBP
Description
The Rural Agro-enterprise Partnership for Inclusive Development and Growth (RAPID Growth) Credit Facility is a credit assistance program created to support the RAPID Growth Project of the national government. The RAPID Growth Project was conceptualized by the Department of Trade and Industry (DTI) and funded by the International Fund for Agricultural Development (IFAD). One of the key features of the RAPID Growth Project is the Conditional Matching Grants. Grant fund support will be provided to qualified proponents to enhance their overall competitiveness level and for the development of the specific agricultural value chain. It is basically aiming to address market failures & institutional deficiencies in terms of access to financing. It also aims to provide the necessary development intervention to help improve agricultural production, productivity, and quality.
Geographic Coverage
Region VIII (Leyte, Southern Leyte and Northern Samar) Region IX (Zamboanga del Norte, Zamboanga del Sur and Zamboanga Sibugay) Region X (Bukidnon, Lanao del Norte and Misamis Oriental) Region XI (Davao de Oro, Davao Oriental, Davao Occidental, Davao del Sur and Davao del Norte) Region XII (North Cotabato, Saranggani, and Sultan Kudarat), Caraga (Agusan del Norte, Agusan del Sur and Surigao del Sur) Bangsamoro Autonomous Region in Muslim Mindanao (Maguindanao)
Assistance Type
Eligible Borrowers Any duly registered small and medium enterprises, including cooperatives and farmers organizations who are certified and endorsed by the Department of Trade and Industry as beneficiaries of the RAPID Growth Project. Eligible Loan Purpose Beneficiaries may avail of loans to finance their equity counterpart under the matching grant component of the RAPID Growth Program. Matching Grant The main feature differentiating the Program is the matching grant provided by DTI. DTI shall finance a portion of the Total Project Cost based on the borrower’s profile and investment purpose. The matching grant component is summarized as follows: Actors level in commodity value chains Investment purpose Grant : Equity Counterpart Smallholder producers in mixed farming systems High yielding planting material and basal fertilizer 60 : 40 Farmer producer organizations, associations and cooperatives Post-harvest processing and storage facilities 60 : 40 Small enterprises privately or collectively owned, expanding Post-harvest processing and storage facilities; processing 30 : 70 services to value chain stakeholders and manufacturing equipment Medium enterprises ≤ PHP 50M assets, privately or collectively Priority to firms specifically addressing environment and 20 : 80 owned, expanding services to value chain stakeholders climate change, OFWs,IPs, women, CSR and public good investment Credit Facilities Term Loan Loanable Amount Up to 90% of the total project cost net of the matching grant with minimum loanable amount of Php 5.0 Million. Interest Rate Prevailing Market Rate Grace Period For term loans, a grace period of up to three (3) years on principal repayment may be granted based on the gestation period of the project. Loan Tenor Maximum of ten (10) years inclusive of grace period. Loan Security/Conditions May be any or combination of the following: Real Estate and/or Chattel Mortgage on object of financing Guarantee coverage from guarantee institutions Insurance cover on the project financed, endorsed in favor of the Bank PCIC insurance cover on the crops, endorsed in favor of the Bank; and Other security arrangements acceptable to DBP Assignment of Receivables Hold-out on deposits Mode of Release Lump sum/Staggered
Document Requirements
Minimum Documentary Requirements
Letter of Intent
DBP Application Forms
Endorsement Letter from DTI
Signed Market Agreement (if applicable)
Photocopy of valid government-issued ID of authorized signatory/ies
Audited Financial Statements and Income Tax Returns for the last three (3) years duly stamped as received by the Bureau of Internal Revenue (BIR);
Latest Business Permits (Mayor’s Permit and Barangay Permit);
Business Plan/Detailed Investment Plan submitted to DTI (if applicable);
Certified True Copy of DTI/SEC/CDA Certificate of Registration

Specific Requirements
Specific Requirements for Farmers Organization and Federation

Certified True Copy of SEC Certificate of Registration;
Certified True Copy of Articles of Incorporation and By-Laws;
Latest General Information Sheet and/or additional documents to fully establish beneficial owners of the legal entity;
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

Specific Requirement for Sole Proprietorship
Certified True Copy of DTI Registration

Specific Requirements for Partnerships
Certified True Copy of SEC Registration
Latest General Information Sheet and/or additional documents to fully establish beneficial owners of the legal entity
Partnership Resolution authorizing the business relationship and the signatory to sign in behalf of the entity

Specific Requirements for Corporations
Certified True Copy of SEC Certificate of Registration;
Certified True Copy of Articles of Incorporation and By-Laws;
Latest General Information Sheet and/or additional documents to fully establish beneficial owners of the legal entity;
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

Specific Requirements for Cooperatives
Certified True Copy of CDA Certificate of Registration;
Certified True Copy of Articles of Cooperation and By-Laws;
Certificate of Compliance issued by CDA, if applicable
Bio-data of incumbent officers and Board of Directors with photocopy of valid government-issued ID;
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