Agricultural Competitiveness Enhancement Fund

ACEF Lending Program

ACEF Scholarship

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ACEF Lending Program

Objectives

  1. To provide necessary credit to farmers and fisherfolk and their cooperatives and associations, and micro and small enterprises to increase their productivity
  2. To establish an agricultural lending program that enhances competitiveness of target project beneficiaries or sectors especially the small farmers and fisherfolks

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Target Borrowers

  1. Individual farmer and fisherfolk
  2. Farmers’ and Fisherfolk Cooperatives and Associations
  3. Registered Micro and Small Enterprises (MSEs)

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INDIVIDUAL FARMER AND FISHERFOLK

Definition of Terms

(Presidential AO No.21-2011,Revised IRR of RA 8435)

  1. Individual Farmer
  • Cultivating not more than 5 hectares
  • For poultry/livestock raisers – raising not more than:
    • Poultry – 1,000 layers or 5,000 broilers
    • Swine – 10 sow level or 20 fatteners
    • Cattle – 10 fatteners or 5 breeders
    • Dairy – 10 milking cows
    • Goat – 50 heads

1.1 Individual Fisherfolk

  • Operating fishing vessels of not more than three tons capacity
  • Operating fishponds of less than five hectares or fish cages of less than 400 square meters
  • Other individuals who are engaged in small scale fish production, processing and distribution

Eligible Loan Purpose

  • Purchase of farm inputs and equipment or for farm improvement

Loan Parameters

Loanable Amount 1.      Individual SFF•      Up to ₱1.0 Million per individual borrower
Financing Mix 90% – ACEF10% – Borrower’s Equity in the form of capital outlay, labor, land for the project site, facilities, equipment and salaries
Interest Rate 2% per annum

Eligibility Requirements

  • With viable project;
  • No outstanding loan from formal lending institutions for the same project being applied for; and
  • With marketable surplus of the project or other confirmed sources of repayment

Loan Security

  1. Production
  • Combination of the following:
  • PCIC insurance, if applicable; and
  • Assignment of expected produce
  1. Acquisition of fixed assets
  • Any or combination of the following:
  • Chattel mortgage on object of financing
  • Assignment of expected produce
  • PCIC Insurance proceeds, if applicable

Documentary Requirements

  1. Loan Application;
  2. General Information Sheet;
  3. Business Plan or Farm Plan and Budget, as applicable;
  4. Sworn affidavit of no outstanding loans from any lending institution for the same project; and
  5. Barangay Clearance

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FARMERS’ AND FISHERFOLK COOPERATIVES

Definition of Terms

(Presidential AO No.21-2011,Revised IRR of RA 8435)

Farmers’ and Fisherfolk Cooperatives

  • Duly registered with the CDA
  • Engaged in agricultural production, farming, agribusiness and similar activities

Farmers’ and Fisherfolk Associations

  • Duly registered with the SEC or DOLE-BRW
  • Engaged in agricultural production, farming, agribusiness and similar activities

Eligible Loan Purpose

  • Acquisition/establishment of agri based production, and processing machineries, equipment and facilities

Loan Parameters

Loanable Amount 2.      Individual SFF•      Up to ₱1.0 Million per individual borrower2.      Farmers and Fisherfolk Cooperatives and AssociationsUp to ₱5.0 Million per project loan per cooperative/ association
Financing Mix 90% – ACEF10% – Borrower’s Equity in the form of capital outlay, labor, land for the project site, facilities, equipment and salaries
Interest Rate 2% per annum

Eligibility Requirements

  • Duly registered with the CDA/ SEC/ DOLE-BRW;
  • Operational for at least 6 months;
  • No adverse findings on the borrower;
  • With core management team composed of manager, cashier and treasurer or equivalent positions; and
  • With proven track record (experience, training and preparation of officers and members to implement the proposed project to be financed)

Loan Security

Any or combination of the following:

  • Chattel mortgage;
  • Insurance proceeds

Basic Policies

Application/ Pre-termination fees Waived
Credit Investigation/Background Investigation •      Waived for individual farmers/fisherfolk
Pre-release Requirement Enrollment or renewal of insurance and guarantee coverage, in which the insurance/guarantee premium shall be charged either as part of borrower’s equity or covered as part of the loan.
Mode of release •      Staggered or lump-sum depending on the project•      Borrowers shall be required to open an Automated Teller Machine Savings Account (ATM-SA)
Loan restructuring Allowed, depending on the evaluation of the lending units
Refinancing Allowed only for loans affected by calamity as declared by the concerned LGU or the National Government.

Documentary Requirements

  1. Loan application;
  2. General Information Sheet;
  3. Photocopy of Certificate of Registration:
  • For cooperatives: certificate of registration from the CDA
  • For associations: Certificate of registration from either DOLE-BRW, SEC and other registering agencies;
  1. Bio-data of incumbent Officers and Board of Directors with ID;
  2. Board Resolution authorizing the Coop/Association to borrow and designating authorized signatories;
  3. Audited Financial Statement for the last year; or, latest interim financial statement for start-up companies;
  4. Business Plan/Consolidated Farm Plan and Budget; and
  5. Current year Business Permit

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MICRO AND SMALL ENTERPRISES

Definition of Terms

(Presidential AO No.21-2011,Revised IRR of RA 8435)

  • Engaged in agricultural production, farming, fisheries, agribusiness and similar activities whether single proprietorship, partnership or corporation, the total assets of which, inclusive of those arising from loans but exclusive of the land on which the particular business is situated
  • Micro Enterprise – not more than P3.0 Million
  • Small Enterprise – not more than P15.0 million

Eligible Loan Purpose

  • Acquisition/establishment of agri-based production and post-production, and processing machineries, equipment and facilities

Loan Parameters

Loanable Amount •      Up to ₱5.0 Million per project loan per borrower
Financing Mix 90% – ACEF10% – Borrower’s Equity in the form of capital outlay, labor, land for the project site, facilities, equipment and salaries
Interest Rate 2% per annum

Eligibility Requirements

  • Duly registered with the DTI/ SEC;
  • No adverse findings on the borrower;
  • With viable project; and
  • No outstanding loans from other financial institutions, for the same project being applied for

Loan Security

Any or combination of the following:

  • Chattel mortgage;
  • Insurance proceeds

Basic Policies

Application/ Pre-termination fees Waived
Credit Investigation/Background Investigation •      Required for registered MSEs;
Pre-release Requirement Enrolment or renewal of insurance and guarantee coverage, in which the insurance/guarantee premium shall be charged either as part of borrower’s equity or covered as part of the loan.
Mode of release •      Staggered or lump-sum depending on the project•      Borrowers shall be required to open an Automated Teller Machine Savings Account (ATM-SA)
Loan restructuring Allowed, depending on the evaluation of the lending units
Refinancing Allowed only for loans affected by calamity as declared by the concerned LGU or the National Government.

Documentary Requirements

  1. Loan Application;
  2. General Information Sheet;
  3. DTI/SEC Registration Certificate and current year Business Permit;
  4. Articles of Partnership/incorporation, if applicable;
  5. Bio-Data of owner and/or partner;
  6. Business Plan or Farm Plan and Budget, as applicable;
  7. Sworn affidavit of no outstanding loans from any lending institution for the same project; and
  8. Barangay Clearance

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FORMS

Loan

Scholarship