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Restoration and Invigoration Package for a Self-sufficient Economy towards Upgrowth for LGUs Lending Program



The program aims to:

1. stimulate the local economy of each province/city/municipality by providing financial assistance to LGUs in its task of providing basic and support services for its local enterprises;

2. encourage LGUs to facilitate the regional and local development in its area by integrating the different actors/players in the agricultural value-chain; and

3. finance other innovative programs of LGUs which can bring back the confidence of its constituents in the local economy.


Municipal/City/Provincial LGUs


1) Permanent Working Capital such as purchase of agricultural produce;

2) Acquisition of equipment and construction of facilities for linking of products to the market such as market infrastructure development and/or improvement, mobile palengke, collection and buying stations, and related facilities; and

3) Other programs and projects of the LGU that provide 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 economy/businesses.


1. Pre-processing

a. Sangguniang Resolution authorizing the LCE to:

1) borrow funds, negotiate and enter into a loan agreement with LANDBANK;

2) sign, endorse loan documents, agreements, notes, and other documents pertaining to the loan obtained from LANDBANK; and

3) approve the projects to be financed and that these are in accordance with the approved local development plan and public investment program or approved annual procurement/investment program

b. COA Audited Financial Statements (FS) preferably for the past three (3) years and latest interim FS;

c. Approved/Supplemental budget for the current year;

d. Ordinance approving the Local Development Plan/Annual Investment Program/ Supplemental Investment Program that includes the projects to be financed and the establishment of economic enterprise in the province.

e. List of elected officials and key officers; and

f. Other requirements the LC may require depending on the project

2. Pre-release

a. Ordinance passed by the Sanggunian:

1) Approving all previous representations, acts, warranties and all the terms and conditions of the loan;

2) Authorizing the assignment of the IRA and other income; revenues and collection as collateral/security to the loan obtained and declaring them to be available and not restricted by law or its other obligations (if not yet on file and for LGUs whose IRA are not yet with LANDBANK);

3) Directing the LGU Treasurer and accountant to enter the loan in the appropriate books of the LGU;

4) Designating the LANDBANK as the LGU's official depository bank for IRA and major depository bank for its other deposits, revenue and collections which designation shall not be revoked while the loan obligations remain outstanding and directing the LGU Secretary to provide a copy of this Resolution to Department of Budget and Management or other IRA administering office;

5) Appropriating the amount for loan repayment in the LGU's annual budget until the loan, interest and other charges are fully paid;

6) Authorizing LANDBANK to deduct for set-off and/or deduct amounts from general funds of the LGU with LANDBANK and apply the same to the payment of the loan or any portion thereof, or interests and penalties thereon as may be deemed necessary by the Bank; and

7) Waiving the confidentiality of information on investment/bank deposit

b. Seal of Good Housekeeping;

c. Latest BLGF Certificate of NBC;

d. Monetary Board Opinion on the LGUs borrowings;

e. Certification by the Budget Officer, Accountant and Treasurer noted by the LCE that:

1) The sources of repayment are available and not restricted by law or other obligations;

2) The contractual obligations shall be or has been entered into the appropriate books of accounts of the LGU;

3) The loan shall be used exclusively to finance the approved eligible project or purpose;

4) LGU shall submit annually to LANDBANK a Certification on the said appropriation;

f. Joint certification by the Bids and Awards Committee Chair and by the LCE that the LGU has complied with R.A. 9184 as well as COA rules and regulations; and

g. Promissory Note with Deed of Assignment of the IRA

h. A guarantee from the dealer/supplier as to the availability of spare parts in the local market.

Note: This shall only be applicable for acquisition of farm machineries and equipment.

3. Post-release

Submission of annual certification that the proposed sources of repayment are available and not restricted by law and its obligations are appropriated in their respective budget

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