FSSI is committed to provide social investments as a contribution to sustaining local economies and eco-systems. We took it as a responsibility to facilitate social investments that lead to triple bottom lines in terms of economic viability, ecological soundness and social equity. We nurture partnerships that help empower the poor to become productive members of society and as stewards of our natural resources.

 

We support social enterprises that undertake development, production, processing and marketing of commodities by the marginalized social sectors. We believe that growing social enterprises requires the support of both state and non-state stakeholders. It also entails capacity building through awareness building and education. And so we support alliances among social enterprises and civil society, as well as with LGUs, government agencies, and the rest of the business sector that are inclined to working with social enterprises.

 

The social enterprise investment fund is aimed at primary cooperatives, cooperative federations, community-based organizations, alliances/network of civil society organizations, private enterprises, and community financial institutions. We also support initiatives that are part of local convergences on the following:

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Our social enterprise investment fund consists of project loans, asset management products, equity contribution and grants.

 

Project Criteria. Triple Bottom Line or the interface of the economic, social and environmental serves as FSSI’s conceptual guide in project development, appraisal, approval, monitoring and evaluation. We support partnerships that promote the Triple Bottom Line through social enterprise development, community governance and advocacy.

 

General eligibilities

 

1.Cooperatives and cooperative federations,
2.SMEs registered as stock corporation,
3.SMEs registered as partnership or single proprietorship,
4.Community Financial Institutions, that includes cooperatives, cooperative federations, cooperative banks, NGOs, and rural banks which are providing financial services in marginalized communities,
5.Non-Government Organizations (NGOs), and,
6.Peoples’ Organizations (POs).

 

An application should submit proof of legal, juridical personality based on Philippine laws, describe their track record, and documents pertaining to their financial condition.

 

Application We accept applications throughout the year. If you are interested to avail a product of Social Enterprise Fund, you may download your application here. Applications may be sent by mail or e-mail to FSSI.

 

Appraisal The assigned Development Services Unit staff of FSSI conducts the project appraisal. The process consists of desk review, field visit, and meeting with the proponent. Additional information may be requested during the appraisal period.

 

Approval The appraisal report is reviewed by FSSI’s Development Services Unit en banc and presented to pertinent bodies for review and final approval. After which, notice of approval is sent to proponent and documentation of contract starts.

Social Enterprise Fund Products

FSSI believes in providing opportunities to communities to improve people’s means of living in a sustainable manner and in scaling-up social enterprises.

 

Eligible organizations:

 

a. Cooperatives;

 

b. Cooperative federations;

 

c. SMEs registered either as stock corporation, partnership or single proprietorship;

 

d. Community Financial Institutions, that includes cooperatives, cooperative federations, cooperative banks, NGOs, and rural banks which are providing financial services in marginalized communities; e. Non-Government Organizations; and,

 

f. People’s Organizations. Loans are provided for a specific business proposal or business activity. The general terms are classified as either term loan or credit line.

 

Term loan – a type of loan released in lump sum or in tranches and payable in fixed number of equal instalments on principal plus interest.

 

Credit line -a type of loan arrangement wherein a borrower can draw from a maximum amount of credit at any time during the validity period. The amount of credit drawn is payable in fixed number of instalment(s). Loan interest rate varies based on type of loan and is generally set lower than most commercial rates.

 

Loans Products


Enterprise Loan – is for acquisition of additional capital assets and for increasing working capital of an enterprise engaged in commodity production, processing and marketing. Loan amount is up to Php 20M. Maturity is 1 year to 5 years.

Start-up Enterprise Loan – is intended to support up-scaling of a newly established enterprise that promises to contribute in improving participation of target social sector in a local value chain. Loan amount is up to Php3M. Loan maturity is up to 5 years.

 

Bridge Financing – is a short-term loan for emergency financing requirement of enterprises. Loan amount is up to P500,000 and maturity per drawdown is up to 1 year.

Business Development Services (BDS) Loan – is a soft loan to help finance enterprise investments other than capital assets acquisition such as for research and development, patenting, market development, organizational development, skills and competency enhancement.

CFI Commodity Production Loan – is a loan extended to CFIs for the purpose of extending loans to individual borrowers engaged in production, processing and trading of agricultural and fishery products. Maximum loan amount is Php 30M. Maturity is 1 year to 3 years.

CFI Microfinance Loan – is a loan extended to CFI to help expand outreach of its microfinance service. Maximum loan to CFIs is Php 30M. Maturity is from 1 year to 3 years.

FSSI’s Asset Management Products (AMPs) are specially packaged for secondary and tertiary cooperatives which provide financing assistance to their members, and for cooperative banks and rural banks which subscribe to a triple bottom line agenda. We believe in sowing the seeds of social enterprises to reach as many beneficiaries as possible. The AMPs aim to help our partners enhance their financial sustainability while contributing in nurturing other social enterprises and increasing local economic activities in various locations.

The placement of investments in formal financial institutions and to tertiary and secondary cooperative federations aims to promote partnership on the basis of strategic objectives in line with local economy development. Together with FSSI, the partner institutions may form a local investment consortium for particular LED areas. AMPs consist of CFI Wholesale Loan, Developmental Deposit and Guarantee.

CFI Wholesale loan – is extended to secondary/tertiary cooperative federation for relending to their member cooperatives. Recipient of wholesale loan should demonstrate sound financial fundamentals with level of risk that may be considered low to very low. Maximum credit line amount is set at 5% of FSSI’s investible funds (total portfolio). Validity and maturity per drawdown is up to 3 years.

Developmental Deposit – aims to strengthen the capacity of Community Financial Institutions (CFIs) in mobilizing savings and increasing their capacity to provide credit to poor communities. Recipients are CFIs, specifically, cooperative banks, cooperative federations, rural banks and thrift banks that demonstrate sound financial fundamentals and with level of risk that may be considered very low. Deposit placement is from 1 year to 3 years at a negotiated interest rate.

Guarantee – aims to help CFIs in providing loans to micro and small enterprises with insufficient or without collateral. Under an arrangement, the CFI manages the guarantee fund and uses its earnings to cover the risk of unsecured loan. The terms of guarantee is renegotiated and renewed annually.

Equity FSSI may contribute equity in an enterprise representing common or preferred shares. Equity investment may be considered a form of leverage intervention to support a particular project that may have a strategic role and contribution in promoting social enterprises in a given sector or geographical area.

Fund syndication is a pooling of funds by a group of donors or investors who work together to help fund a project or a business venture. FSSI participation in fund syndication may be in the form of grant, equity, guarantee or loan, or a combination of these financing services.

Grant assistance is provided to Civil Society Organizations (CSOs) and CSO-based social enterprises that are involved in initiatives towards poverty reduction, promotion of social justice and improvement in economic welfare of the poor and marginalized sectors.

There are three windows under this facility, namely, start-up enterprise grant, capacity building, and advocacy grant.

Start-up Enterprise Grant

Start-up Enterprise Grant is intended to support CSO initiatives in setting-up social enterprises owned or partly owned by marginalized social sectors in selected focus areas. The grant can be used to partially cover the initial capital assets acquisition and working capital requirement of the enterprise. Maximum grant amount is Php 1,500,000.00.

Eligible organizations:

–    Cooperative located in focus area,

–    Non-government organization located in focus area, and,

–    People’s organization located in focus area.

Capacity Building Grant

Capacity Building Grant is intended to support enhancement of effectiveness and efficiency of Social Enterprises (SEs) that are fully or partly owned by marginalized social sectors and their host communities. Maximum grant amount is Php 500,000.00. The grant can be used to partially cover the cost of the following activities:

–    Business planning and management

–    Research and development

–    Market development

–    Organizational development

–    Competency enhancement (enterprise level)

–    Community skills training (outreach)

Eligible organizations:

–    Cooperative located in focus area,

–    Non-government organization located in focus area, and,

–    People’s organization located in focus area.

Advocacy Grant

Advocacy Grant is intended to support advocacy projects working on the following themes:

–    social entrepreneurship

–    climate change adaptation and mitigation

–    sustainable production

–    alternative/renewable energy

–    value chain development in specific industry or sector

–    gender in enterprise and value chain

–    patronage of products and services of social enterprises
Advocacy grants maybe extended to both national and local initiatives. Maximum grant for advocacy is Php 300,000.00. Proponents should submit a letter of intent and the project proposal.

Eliigible organizations:

–    Non-government organizations,

–    People’s organizations, and,

–    Academe.