SBCorp Explained: Small Business Corporation

The Small Business Corporation (SBCorp) serves as a pivotal government institution in the Philippines, established in 1991 to bolster micro, small, and medium enterprises (MSMEs) through accessible financial services. Operating under the Department of Trade and Industry (DTI), SBCorp implements a range of programs and policies that aim to empower entrepreneurs by addressing their unique financing and support needs, ultimately driving economic growth.

Through its comprehensive financial solutions and dedicated advocacy, SBCorp targets traditionally underserved businesses, including micro-retailers, agribusinesses, and Indigenous Peoples’ enterprises. By offering non-usurious financing options and valuable training resources, SBCorp fosters resilience and sustainability in the MSME sector, enabling these businesses to thrive in a competitive economic landscape.

What is SBCorp?

SBCorp stands for Small Business Corporation, a government institution founded in 1991 to support micro, small, and medium enterprises (MSMEs) in the Philippines. Established through Republic Act (RA) No. 6977, also known as the Magna Carta for Small Enterprises, and later amended by RA 8289 and RA 9501, SBCorp. plays a critical role in advancing entrepreneurship. It operates under the Department of Trade and Industry’s (DTI) MSME Development Council, implementing policies that address MSME financing, training, marketing, and other essential services.

As a key financial arm for small businesses, SBCorp provides non-usurious financing options to enterprises traditionally viewed as unfinanceable, including micro-retailers, agri-aqua businesses, Indigenous People (IP)-owned enterprises, and disaster-affected MSMEs. By increasing its authorized capital stock to P10 billion in 2008, SBCorp is better equipped to deliver comprehensive assistance and promote economic diversity. Its mission is to empower MSMEs across various sectors, helping them drive local and national economic growth through accessible and sustainable financial solutions.

History

SBCorp was founded in 1991 under the Magna Carta for Small Enterprises to support Philippine micro, small, and medium enterprises (MSMEs) through accessible financial services. It began as the Small Business Guarantee and Finance Corporation (SBGFC), focusing on loan guarantees and other support mechanisms. In 2001, SBGFC merged with the Guarantee Fund for Small and Medium Enterprises to create SBCorp, allowing it to expand its services to include direct loans and risk-based lending. By 2017, SBCorp played a key role in government initiatives, notably managing the Pondo sa Pagbabago at Pag-asenso (P3) program, which provides affordable financing for MSMEs. Over the years, SBCorp has grown significantly, adapting its programs to assist MSMEs facing crises, including natural disasters and the COVID-19 pandemic.

Logo

The SBCorp logo symbolizes the collaborative spirit of Bayanihan among the government, MSMEs, and SBCorp, working together to uplift small businesses in the Philippines. This design reflects the transformative goal of creating accessible and fair financing options for small enterprises that traditionally struggle to secure funds. The black in the logo signifies the government’s strength and authority, ensuring MSMEs have fair access to opportunities. Green represents SBCorp’s commitment to advocate for underserved businesses, creating sustainable financial support. Meanwhile, orange embodies the resilience, creativity, and dedication of MSMEs as they strive to support their families, communities, and the nation.

Mission

SBCorp’s mission is…

“…to relentlessly champion and bridge the financing needs of the underserved but financeable segments of the country for their sustained growth.”

Vision

According to their website, SBCorp operates under the guidance of the following vision statement:

“By 2028, we will be a financially-sustainable and socially-responsive organization trailblazing innovative financing solutions for growing MSMEs that contribute to inclusive economic development.”

Core Values

The core values of SBCorp reflect its commitment to empowering small and medium businesses while fostering a responsible, community-driven approach. These principles guide its operations, supporting sustainable growth and national development.

Matapat sa Bayan: Serving with integrity and loyalty to the nation, providing trustworthy and ethical support to the people and businesses it serves.
Magaling at Maabilidad: Demonstrating excellence and creativity in all endeavors, SBCorp seeks innovative solutions and continuously improves to address the needs of MSMEs.
Bayanihan: Embracing the spirit of teamwork and unity, SBCorp works collaboratively with communities and partners to uplift small enterprises and strengthen the local economy.
Mapagkalinga sa Kalikasan: Committed to environmental stewardship, SBCorp supports sustainable practices to protect and preserve natural resources for future generations.

These values serve as the foundation for SBCorp’s mission to build a resilient and inclusive economy across the Philippines.

Service Pledge and Policy

Driven by a strong commitment to its mission, SBCorp operates with determination while fostering a culture of respect and kindness among its team members. The organization values both intensity in achieving its goals and compassion in its internal and external relationships. This approach combines rigorous dedication with a supportive, collaborative spirit to maximize impact.

Mandate and Objectives

As a government-owned corporation (GOCC), SBCorp was established to support the development of micro, small, and medium enterprises (MSMEs) in the Philippines. Its mandate is to provide accessible financial services and resources tailored to the unique needs of these smaller enterprises. The corporation’s role includes offering affordable financing options, improving access to information, and fostering business skills through training and marketing programs.

Through these efforts, SB Corporation lives up to its goal of fostering prosperity, empowering MSMEs, driving economic growth, and promoting financial inclusion for and among the different MSME groups across the country. Since MSMEs are often viewed as challenging to finance,the programs and services of SBCorp help them become active contributors to a diverse and inclusive economy. These traditionally “unfinanceable” enterprises are ongoing businesses that struggle to secure funding without facing excessively high interest rates. By offering fair financing solutions, the aim is to empower these businesses and enhance economic growth across all sectors.

Powers and Functions

SBCorp is empowered to support micro, small, and medium enterprises (MSMEs) through a range of functions and responsibilities.

Financial Assistance: Provide various forms of financial support, including loans, guarantees, and venture capital to eligible MSMEs.
Wholesale Lending: Engage in wholesale lending to smaller financial institutions, cooperatives, and foundations to expand access to financing for MSMEs.
Guarantee Services: Offer loan guarantees to qualified MSMEs, reducing the risk for lenders and encouraging them to extend credit.
Capacity Building: Implement training programs and workshops aimed at enhancing the business skills and financial literacy of MSME owners.
Market Development: Assist in marketing efforts for MSMEs by providing information services and facilitating access to markets.
Policy Implementation: Act as the implementing agency for government-supported financing programs designed to promote entrepreneurship among MSMEs.
Disaster Recovery Support: Provide specialized financing programs for MSMEs affected by natural disasters or economic disruptions.
Advocacy for MSMEs: Advocate for policies that support the growth and sustainability of MSMEs within the broader economic framework.

These enable SBCorp to help foster a vibrant ecosystem for small businesses in the Philippines.

Organizational Structure

SBCorp’s management system is efficiently designed to have the ability to provide comprehensive oversight and support to its core functions. At the top, the Board of Directors oversees various committees, including Audit and Compliance, Corporate Governance, Finance and Risk Oversight, and IT Governance, ensuring strict governance and accountability across the organization. Reporting directly to the President/CEO is the Office of the Executive Vice President, which manages multiple key sectors: Financing, Strategy, Policy and Systems, and Corporate Support. The Financing Sector is divided into regional groups (Northern Luzon, Southern Luzon, Visayas, and Mindanao) to cater to specific regional needs. Meanwhile, the Corporate Support Sector handles critical administrative functions, including Credit Support and Asset Recovery, HR and Administrative Services, and Legal Services, which are in-charge of organizational efficiency and risk management.

Benefit

SBCorp supports micro, small, and medium enterprises (MSMEs) by offering accessible financing options to stimulate economic growth and resilience among small businesses, particularly in challenging times.

Interest-free and collateral-free access to financing, making it easier for MSMEs to secure funding without the burden of high costs or risk of asset loss.
Support during crises, offering substantial funding to help them restart operations.
Tailored loan programs for different sectors, including tourism and cooperatives, ensuring that diverse business needs are met.
Lower barriers to entry with simplified application processes and reduced requirements for loan eligibility, allowing more businesses to access financial support.
Training and consultancy services that enhance the business acumen of MSME owners, helping them manage their enterprises more effectively.
Advocacy for MSMEs focused on small business development, contributing to a more favorable business environment.
Economic growth contribution, which contributes to job creation and overall economic stability.

Coverage

The programs and services of SBCorp covers at least seven target MSME segments, including:

Micro and small businesses in agriculture and aquaculture
Micro retail shops and small-scale vendors
Enterprises in remote and small island communities
MSMEs needing recovery support after disasters
Enterprises owned by Indigenous Peoples
First-time small business owners

Programs and Services

Some of the programs and services offered by SBCorp include:

1. Enterprise Rehabilitation Financing (ERF) Program

One of SB Corp’s key initiatives, the Enterprise Rehabilitation Financing (ERF) program, offers financial assistance to MSMEs affected by calamities, helping them recover from revenue loss, asset damage, and operational setbacks. With zero interest in the first year and flexible payment terms, the ERF is designed to ease the burden on struggling enterprises. By providing targeted financing solutions, SB Corp plays an essential role in supporting economic growth and resilience within the MSME sector.

2. RISE UP Multi-Purpose Loan

The RISE UP Multi-Purpose Loan is an SBCorp.prpgram designed to provide affordable loans to help MSMEs recover from recent economic challenges. This program offers tailored loans for microenterprises, first-time SME borrowers, and “Suki” or loyal clients with a strong repayment history. Each loan product has specific eligibility criteria and loan terms, aiming to support businesses with accessible financing, minimal collateral requirements, and competitive interest rates to foster long-term growth.

3. RISE UP Tindahan

SB Corporation offers loans of up to PHP 5 million, with amounts based on a percentage of annual sales—40% for retail stores and 15% for dealers and distributors of fast-moving consumer goods (FMCG) under the program known as RISE UP Tindahan. The loan program has a term of up to three years, with an interest rate of 8% per year, calculated on a diminishing balance, excluding documentary stamp tax (DST). Requirements include a government-issued ID, business permits, proof of assets under PHP 100 million, and FMCG accreditation, with a minimum business track record of one year (or three years for loans above PHP 1 million).

4. MSME Financing Programs

SBCorp also offers various financing programs to support micro, small, and medium enterprises (MSMEs) in the Philippines, addressing specific financial needs and encouraging business growth. Here are some of their key programs:

Corporate-Funded Programs

Regular Retail Program: Direct loans for MSMEs to bridge financing gaps, targeted at Filipino-owned companies with a maximum of PHP 100M in assets, and at least two years of profitable operations. Sectors supported include manufacturing, trade, and services, excluding farm-level agriculture, real estate, and vice-related industries.
- Fixed Asset Financing: Loans for building upgrades, production areas, or vehicles with terms of 3-5 years, secured by real estate or chattel mortgage.
- Working Capital Financing: One-year credit line for micro and small businesses, covering up to 80% of receivables and 60% of inventories, with regular monthly repayments.
Regular Wholesale Programs: The Regular Wholesale Program of SBCorp is a funding program designed to provide wholesale lending options for financial intermediaries (such as rural banks, cooperatives, and other lending institutions) to support small and medium-sized enterprises (SMEs) and micro-enterprises. It aims to bridge the financing needs of these enterprises by rediscounting loans or offering capital to microfinance institutions, which can then lend to end-borrowers in various sectors.
- SME Wholesale: Provides rediscounting facilities for SME sub-borrowers that meet specific qualifications, such as majority Filipino ownership (at least 60%), positive net income, and compliance with debt-to-equity ratio requirements. It supports industries excluding farm-level agriculture, real estate, and vice-related sectors.
- Graduating Micro Wholesale: Targets micro-enterprises that are growing and transitioning towards SME status, allowing them to access higher credit. The program has a loan cap of PHP 500,000 and follows similar qualifications as the SME Wholesale, focusing on enterprises with at least 60% Filipino ownership and financial stability.
- Microfinance Wholesale: Offers capital for microfinance institutions (MFIs) and MSME-focused rural banks, divided into Micro-Lead (for MFIs with a strong microfinance portfolio) and Micro-Local (for rural banks serving MSMEs). This component helps MFIs extend loans to micro-entrepreneurs who need accessible financing.
  - Micro-Lead is a loan program for MFIs whose loan portfolio and organizational structure is at least 60% MF
  - Micro-Local is a program for MSME-oriented rural banks
Venture Capital Program: This program offers equity funding for high-growth MSMEs in industrial, social services, agribusiness, tourism, or environmental sectors, structured as corporations. The financing program is structured as preferred or common stock investments and offers up to 40% of capital stock, ranging from PHP 500,000 to PHP 5 million, with a 5-10 year term and exit options like redemption or IPO.

National Government-Funded Programs

P3 Lending Programs: Loans for micro-enterprises with assets under PHP 3M, offering low interest rates (2.5% per month) and amounts up to PHP 200,000, based on business size and capacity.
- P3 Retail Loan Programs
  - P3 Retail – Regular: This is a program for self-employed individuals or micro entrepreneurs with at least one year of legitimate business activity to apply for a loan. Applicants must possess a government-issued ID, a Barangay Clearance issued within the last three months, and proof of micro enterprise activity. Loans range from P5,000 to P200,000, with an interest rate of no more than 2.5% per month.
  - P3 Retail – Special Facilities: This program offers special loan considerations for specific areas and situations, such as KIA/WIA, Marawi, Boracay, Ompong, and Rebel Returnees. The focus is on providing micro enterprises with the necessary financial support to help them thrive in these special circumstances.
  - Equity Investment for Families of KIA/WIA: This initiative provides interest-free micro enterprise investments ranging from P50,000 to P100,000 for families of fallen soldiers or KIA/WIAs. If the investment is not repaid within two years, an interest rate of 2% per annum will apply starting in the third year. Qualifying businesses may be start-ups supported by DTI with training and starter kits, and families must submit monthly progress reports on their businesses.
P3 Wholesale: P3 Wholesale refers to a lending framework designed for microfinance institutions (MFIs) that need accreditation to partner with funding agencies. To qualify, an MFI must have a valid lending license, a minimum capitalization of P500,000, and must have been operating for at least one year. They also need to demonstrate financial stability by showing positive net income for the last 12 months, maintain a healthy microfinance portfolio at risk (PAR) below 20%, and adhere to specific capital adequacy and debt-to-equity ratios. Compliance with regulatory standards set by agencies like the SEC, CDA, and BSP is also mandatory.
- SB Corp. to Conduit: This refers to the loan program where SB Corporation provides financing to conduits, which are intermediary organizations that subsequently lend to micro enterprises. The credit line amount for conduits is assessed by SB Corporation, with a term of one year, subject to annual review. The repayment structure allows for a promissory note (PN) term of up to 24 months, with flexible repayment schedules (monthly or quarterly). Interest is set at 0% for the first year and then shifts to 2.0% per annum from the second year onward, with a service fee of 2.75% deducted upfront. The structure allows for advanced drawdown up to 50% of the approved loan based on the conduit’s financial profile, and there are no collateral requirements.
- Conduit to Micro Enterprise Borrowers: This lending model focuses on the conduit’s ability to extend loans to micro enterprises. Under this arrangement, the loan limit for end-borrowers can reach up to P100,000, with the possibility of increasing to P200,000 for micro enterprises employing at least one full-time worker. The conduit has the flexibility to set the terms of loan release, repayment schedules, and collection processes, catering to the specific needs of micro enterprises. The interest rates can go up to 2.5% per month, all-inclusive of fees, allowing for tailored financial solutions that address the unique challenges faced by smaller businesses.

5. Enterprise Rehabilitation Facility (ERF)

The ERF provides quick-response loans for MSMEs affected by natural or man-made disasters, helping them recover and rebuild. Eligible businesses must have been operational for at least a year before the calamity, with loans available for asset replacement and inventory. This program aims to restore economic stability in affected communities.

Video: Resilient, Innovative, and Sustainable Enterprises, Unleash Your Powers with SBCorp

To help you better understand how SBCorp helps MSMEs, watch this video from SBCorp:

Summary

SBCorp is instrumental in transforming the economic landscape for MSMEs in the Philippines, promoting financial inclusion and sustainable growth across various sectors. By continuously adapting its programs and services to meet the evolving needs of small businesses, SBCorp champions entrepreneurship and contributes significantly to the nation’s economic development.

Contact Information

For more information on SBCorp and its programs and services,, contact SBCorp’s team or visit their official website.

Small Business Corporation (SBCorp)
Main Office Address: 17th & 18th Floors, 139 Corporate Center, Valero St., Salcedo Village, Makati City 1227
Contact Number: (632) 5 328 1100 to 10 and 5 328 1112 to16 Local 1753 and 1731
Email Address: sbcorporation@sbgfc.org.ph
Official Website: https://sbcorp.gov.ph/
Official Social Media Pages
Facebook: https://www.facebook.com/BayanihanCARES