Here’s Your Guide To SSS Business Loan Requirements, Eligibility, And Application

3 min read By Kia Navarro on

The Social Security System (SSS) provides loans to SSS members who have their own business through their SSS Business Loan program.

The SSS Business Loan Program is under the Business Development Loan Facility and is designed to give back to the nation’s development. It encourages economic growth by providing the business sector with financial assistance to increase their productivity and maximize their earnings through expansion, business development, and diversification.

What are the requirements for an SSS Business Loan?

  1. Single proprietorship and Partnership (or Corporation) that is at least 60% Filipino owned. These also include the cooperatives and non-government organizations
  2. Any business that is allowed or registered under Philippine laws. Here are a few examples given by SSS:
    • Agri-Business. Contract growing, aquaculture
    • Food Processing. Rice mill, oil mill, feed mill, meat processing, etc.
    • Manufacturing. Garment, ceramics, textile, furniture, construction materials
    • Commercial Production. Particularly of food and basic consumer items and products for export
    • Service-Oriented Enterprises. Transportation, warehousing, utilities, communications, etc.
    • Tourism Related Projects. Hotel, resort, theme park, etc.
    • Real Estate Development Projects. Industrial estate development
    • Sustainable Energy Projects. Construction of green building, waste management system, sewerage treatment plant, etc.
    • Extractive Industries. Mining, quarrying, dredging, oil and gas extraction projects
    • Forest Development Projects. Plantation, reforestation, regeneration, and other forest-related projects
    • Trading Business
    • Leasing/Lending Business
  3. You must be an SSS Member-employer with a good record
  4. Must have a proven track record of profitability for existing enterprises
  5. The average income of the past two to three years should be positive even if the company incurred losses within the past three years
  6. For enterprises that started their operations during the last five years, the three-year track record of profitability may be waived

(Read: How To Get Approved For A Business Loan)

Know the loan details of the SSS Business Loan program

All loans approved by the participating financial institution (PFI) are subject to an amortization schedule that is payable monthly, quarterly, semi-annually, or annually. The maximum term for all loans is 15 years and there is a grace period of three years on principal payment.

For loans that are used for business development by extractive industries or forest development-related projects, they are entitled to a longer payment term. The maximum years given is 25, no more. The loans are secured by any collateral that is approved by the PFI’s and SSS.

The current interest rates are reviewed monthly. It could be variable or fixed, based on the prevailing SSS passing rate to PFI and PFI’s spread.

The maximum amount that is loanable to borrowers is the lowest of the debt-equity ratio. It should not exceed 3:1 after financing.

The total loan with the SSS should also not be more than 5% of the SSS investment Reserve fund (IRF):

  • Amount of loan being applied
  • Actual need of the borrower (total project cost)
  • Loan value of the assigned collateral or securities; or
  • Maximum of P500 million per borrower

Take note that the loans that are usually approved are loans used for the following purposes:

  • Site development
  • Enhancement or modernization of existing facilities
  • Construction or repair of the building and other civil works
  • Acquisition or repair/upgrading of machinery and equipment including furnishings
  • Acquisition of existing facilities
  • Acquisition of land (up to 50% of the acquisition cost)
  • Working capital

(Read: A Quick Guide To The DTI Microloan Program)

How to apply for an SSS Business Loan

SSS member-employers can apply for a loan facility through any of the SSS’s accredited PFIs.

PFI Address Contact Number
Development Bank of the Philippines Sen Gil Puyat Ave., Makati City 812-9932; 818-9511 loc. 2305
Land Bank of the Philippines Land Bank Plaza, 1598 M. H. del Pilar, Malate, Manila 405-7640; 522-2200; 551-2200; 405-7198
Philippine National Bank 3/F PNB Financial Center Pres. Diosdado Macapagal Blvd. Pasay City 573-4661; 526-3131 loc. 4661
Philippine Veterans Bank 101 V.A. Rufino St. Legaspi Village, Makati City 846-5933 loc. 2101, 2105 and 2118

For comments, concerns and inquiries contact:

SSS Trunkline No.: (632) 920-6401 SSS Call Center: 920-6446 to 55 IVRS: 917-7777 Toll-Free No.: 1-800-10-2255777 SSS Email: member_relations@sss.gov.ph SSS Facebook: https://www.facebook.com/SSSPh

International Toll-Free Nos.

  • Asia
    • Hongkong: 001-800-0225-5777
    • Singapore: 001-800-0225-5777
    • Malaysia: 00-800-0225-5777
    • Taiwan: 00-800-0225-5777
  • Middle East
    • Qatar: 00800-100-260
    • UAE: 800-0630-0038
    • Saudi Arabia: 800-863-0022
    • Bahrain: 8000-6094
    • Brunei: 801-4275
  • Europe
    • Italy: 00-800-0225-5777
    • UK: 00-800-0225-5777

About the author

Kia Navarro

Kia Navarro Kia Navarro still lives with her parents. She is, after all, a 24-year-old student who just happens to write content for eCompareMo, which she refers to as "the coolest company she's ever written for."