P10-B loan program rolled out for LGUs’ upturn from COVID
As the country takes recovery measures, the Landbank of the Philippines is offering a new lending program to finance development and innovative projects of local government units to help rebuild their communities.
Landbank has earmarked P10 billion for the RISE UP LGUs lending program available for provincial, city and municipal LGUs. RISE UP LGUs stands for Restoration and Invigoration package for a Self-sufficient Economy towards Upgrowth for LGUs.
The program was virtually launched July 29 during the regular meeting of the Union of Local Authorities of the Philippines (ULAP), the umbrella organization of all leagues of LGUs and locally elected government officials in the country.
Landbank President and Chief Executive Officer Cecilia C. Borromeo and ULAP National President Dakila Carlo E. Cua led the launching joined by ULAP member-leagues and officers including League naging the effects of unforeseen catastrophes. We hope that the Landbank RISE UP LGUs Program will help them better serve their constituents and communities, while developing a stronger local economy that can withstand future crises,” Borromeo said.
The Landbank RISE UP LGUs Program will be made available to eligible LGUs at a loan amount depending on their project requirements, provided that the total loan exposure (including the proposed loan under the program) should not be more than its net borrowing capacity per Bureau of Local Government Finance computation/certification.
The loan shall bear an affordable interest rate of 4.5 percent per annum fixed for the first year, and subject to annual re-pricing thereafter based on the bank’s prevailing interest rate.
The loan may be used for the purchase of agricultural produce, acquisition of equipment, and construction of facilities for linking of products to the market, such as the market infrastructure development and/or improvement, mobile palengke, collection and buying stations, and related facilities.
The LGU may also use the loan to fund programs and projects that will provide its constituents with basic and support services, social welfare and healthcare, and other infrastructure activities that aim to bring back confidence of the people and spur the local economic activities/businesses after a crisis or pandemic.
For permanent working capital, the program offers a loan tenor of three years. Tenor for term loan is up to 10 years. A grace period of up to one year on principal payment for both credit facilities may also be granted.
To ensure an extensive information dissemination and coordination for the loan availment of the lending program, a memorandum of understanding was also virtually signed between Landbank, ULAP, LPP, LCP, and LMP during the webinar, which was streamed live over the Facebook pages of ULAP (fb.com/ulap.net.ph) and Landbank (fb.com/landbankofficial). – Press release