Small Business Guarantee and Finance Corporation soemco
Small Business Guarantee and Finance Corporation
On 16 November 2001, the Small Business Guarantee and Finance Corporation (SBGFC) and the Guarantee Fund for Small and Medium Enterprises (GFSME) were merged through Executive Order 28 and became known as the Small Business Corporation.
SBGFC was created on 24 January 1991 under Republic Act 6977, (as amended by Republic Act 8289). The Corporation was given a mantle of authority to offer a wide range of financial services, specifically for small and medium enterprises engaged in manufacturing, processing, agribusiness (except crop level production) and services (except trading). These financial services include among others guarantee, direct and indirect lending, financial leasing, secondary mortgage, venture capital operations and the issuance of debt instruments for compliance with the mandatory allocation provision.
Aside from the creation of SBGFC, the law likewise has the following significant provisions: a.) the creation of the Small and Medium Enterprise Development (SMED); b.) the mandatory allocation of credit resources to small enterprises; and c.) the rationalization of government assistance programs and agencies concerned with the development of SMEs. SBGFC commenced its operations on July 16, 1992. It is attached to the Department of Trade and Industry and is under the policy, program and administrative supervision of the Small and Medium Enterprise Development (SMED) Council.
At the time of the merger, GFSME was a guarantee fund operated independently by a Management Committee and professional staff under the Livelihood Corporation, a corporation attached to the Office of the President of the Philippines. GFSME’s services were restricted to offering of guarantee services to participating financial institutions lending to SMEs from the time it started commercial operations in 1984.
Today, Small Business Corporation is the National Government’s third largest provider of SME financing, with a lending portfolio of over P3 Billion. There are over 3,000 clients, 71 partner financial institutions, and serving 57 of the 75 provinces across the country. The Corporation has 3 area offices, and 7 desk offices set across Luzon, Mindanao and the Visayas.
In the early part of July, 2010, SOEMCO qualified as a partner of Small Business Corporation under its Microfinance Wholesale Program.