The Accelerated Loans for Empowered, Resilient and Transformed Agrarian Reform Beneficiary Organizations (ALERT ARBOs) Program aims to provide accessible, adequate, timely, and affordable loans to eligible ARBOs and their member-ARBs for the purpose of financing their individual or communal agriculture and fisheries activities, agri- and fishery-based enterprises, and other agri-related projects.
Eligible Borrowers
- • Farmers’ Cooperatives and Associations
- • People’s Organizations
- • Eligible sub-borrowers
- • ARBs
- • ARB household members
Loan Purpose
- • Working Capital
- • Acquisition of farm implements, machinery, and equipment
- • Agri-fishery-based enterprise projects
- • Relending to ARB members and ARB household members
Loanable Amount
- • Working Capital for On-lending:
- Existing Borrower: based on actual credit requirements of member-borrowers but not to exceed 90% of the total project/production cost
- New Borrowers: based on actual credit requirements of member-borrowers but not to exceed 90% of the total project/production cost but not to exceed P15.0 million
- • For ARBO-managed Projects: up to 90% of the total project/production cost but not to exceed P15.0 million for new borrowers
Interest Rate
- • STLL & TL
- Fixed at five percent (5%) per annum (p.a.), or at such interest rate as may be subsequently approved by the National Program Management Committee (NPMC)
Collateral Requirements / Credit Enhancers
- • Collateral
- Real estate mortgage
- Security Interest on the subject of financing
- • Credit Enhancer
- Assignment of PNs/ sub-borrowers PNs, plus underlying collaterals, if any
- Assignment of PCIC insurance proceeds/ guarantee claims, if applicable
- Assignment of inventory, receivables and proceeds of marketing contract, if any
- Other acceptable collaterals
Documentary Requirements
Pre-processing (Common to all)
- 1. Loan application
- 2. Endorsement by DAR/LPMC
- 3. Proof of attendance to Financial Literacy Seminar and Loan Orientation Seminar;
- 4. Certification that borrowing members have no outstanding loans with any financing institutions for the same project being applied for, and are cultivators of the land;
- 5. Photocopy of Certificate of Registration, Articles of Cooperation/Incorporation, and Constitution or By-laws, including amendments thereto, if any, duly authenticated by DAR/DENR or LBP;
- 6. Duly-notarized Resolution of the Board of Directors/Officers applying for the ALERT ARBOs loan and designating at least two (2) officers to negotiate a loan with LBP and sign loan documents, with their specimen signatures and photos of authorized signatories;
- 7. Three-year Audited financial statements (FS) and/or interim FS for the current year;
- 8. Certified list of BODs and Core Management Team (Manager, Treasurer/Cashier, Bookkeeper)
- 9. List of members of the borrowing ARBO with their profile; and,
- 10. Copy of lending policies, systems and procedures, and minutes of meetings
- 11. Marketing arrangement, if applicable
- 12. For sugarcane financing, milling report for sugarcane farm for the last three (3) years
