Credit Assistance for Cacao Agri-Business and Other Organizations (CACAO 100) Program

Rationale

  • To increase agricultural productivity through intercropping of cacao in coconut areas or planting in idle lands;
  • To provide credit assistance to Small Farmers, SMEs, LAEs amounting to at least P500 Million, for production, in the next 3 years; and
  • To contribute with the overall efforts of the government in generating employment and pursuing the attainment of inclusive growth in the countryside.

Eligible Borrowers

  • Individual Borrowers*/SMEs.
  • Cooperatives/Associations/Farmers organizations.
  • Large Agri-Business Entities/Corporations.

* small growers will be clustered (bayanihan group)

Basic Lending Policies

Credit Facilities

  • Short Term Loan Line
  • Term Loan

Loan Purpose

  • Short Term Loan

*  Working Capital, Relending, production loan (nursery).

*  Rediscounting

  • Term Loan

*  Production loan (new area & rejuvenate/rehabilitation of old trees).

*  permanent working capital.

*  Fixed Asset Acquisition.

Loan Term

  • Short Term Loan – 1 year
  • Term Loan

*  New Plantation – Seven (7) from the initial loan drawdown.

*  Rejuvenation – Three (3) years from the initial loan drawdown.

*  Fixed Assets – Based on the economic useful life for second/refurbished  machines.

Interest Rate

Prevailing LBP rate at the time of availment.

Grace Period

New Plantation:

*  Grace period of three (3) years on principal and interest.

For maintenance –year 2/rejuvenation:

*  Grace period of one (1) year on principal and interest.

*  The deferred interest during the grace period shall be capitalized  and amortized in the same manner as the principal and interest of the loan for the remaining period.

Repayment Term

New Plantation

  • Payable in quarterly basis at the end of the 13th quarter from the  date of initial drawdown.

Rejuvenated Plantation

  • Payable in quarterly basis to start to start at the end of the 5th quarter from the date of initial drawdown.

Collateral

  • Any asset acceptable to the bank
  • For individual farmer-borrower: proof of ownership of properties to be submitted to LBP for safekeeping  as “table collateral”