Finance Your Dream Business With The Help Of SSS Business Loan

Time and again, people will always tell you that OFW life is not forever. That’s true. In fact, you’re only as good as your contract. This means once your contract expires, you have to go back home and look for another job.

Or, you can start your own business and stay here for good – with your family.

“Wala naman akong pang-capital,” you might say.

Private lending firms such as Balikbayad offers business loans for OFWs like you. But if you want to make the most out of your benefits, then you might want to consider SSS Business Loan.

Stick around because you’ll learn everything you need to know about this type of facility from the government.

What is SSS’ Business Development Loan Facility?

The Business Development Loan Facility is SSS’ lending facility that aims to provide financial assistance to the business sector to increase productivity and enhance potential earnings. The borrowed funds may be used for expansion, diversification, and other business development projects.

This facility is also aimed to support the program of the government towards more employment opportunities and increased economic activity for the country’s economic growth and development.

The good thing about this facility is that there is no pre-payment fees and penalties to be charged in case you want to pay earlier.

What are the terms under this type of facility?

Loanable Amount

The maximum loan amount shall be the lowest of the following:

  • Amount of the loan being applied
  • Actual and total project cost
  • Loan value of the assigned securities or collateral
  • Maximum of P500 million per borrower

Take note that the equity ratio after financing is 3:1. Consequently, the total loan with the agency must not be more than five percent of the SSS Investment Reserve fund.

Interest Rate

The prevailing market rate, which will be reviewed every month. You also have the option between variable or fixed interest rate.

Loan Term

The term of the loan must be maximum of 15 years. The agency also allowed a grace period of more than three years on principal payment for those who will use the amount to finance projects related to forest development or extractive industries. In this instance, the maximum loan term is 25 years.


The SSS Business Development Facility loan is a secured loan. Asset of any kind may be used as long the total amount will fully cover the loan.

What are the allowed businesses?

  • Agri-business
  • Food processing
  • Manufacturing
  • Commercial Production
  • Service-Oriented Enterprises
  • Tourism-Related Projects
  • Real Estate Development Projects
  • Sustainable Energy Projects
  • Extractive Industries
  • Forest Development Projects
  • Trading
  • Leasing or Lending Business

What are the allowed purposes of the loan?

  • Site development
  • Enhance or modernize of existing facilities
  • Construction or repair of building and other civil works
  • Acquisition, repair, or upgrading of machinery and equipment, including furnishings
  • Acquisition of existing facilities
  • Acquisition of land, which is up to 50 percent of the acquisition cost
  • Working capital

What are the eligibility requirements?

The borrowers must be:

  • SSS member-employee in good standing
  • New or existing private industries and enterprises
  • Single proprietor, partnership, or corporation that is at least 60 percent Filipino-owned, including cooperatives and non-governmental organizations
  • Engaged in any of the businesses mentioned above
  • For existing businesses, must have a proven track records of profitability with no incurred losses for the past three years and average income for the past two years is positive

There are tons of financial companies that could assist you with your needs. Nonetheless, SSS is a good option that you might want to consider for your future business needs.

If you are interested, you may contact any SSS-accredited participating financial institutions or PFIs. You may call the Business and Development Loans Department at 8920-6401 local 5115 for a complete list of PFIs and to start your loan application process.

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