Sharing the same pursuit of stimulating growth and development in the agriculture sector by financing viable agri-fishery and livelihood projects, FICOBank applied for accreditation as Lending Entity (LE) under the Agricultural Credit Guarantee for Rural Productivity – Agri-fishery and Livelihood Projects for Food and Agricultural Retail Enterprises (AGRICORP-AFLIP) of QUEDANCOR. The Bank’s application for accreditation as LE has been approved by the management of QUEDANCOR on January 27, 2010. Its Certificate of Accreditation numbered CRBK CA-Q-000-0000-0000071 is valid for two years and will expire on January 26, 2012.

In order to take a full grasp of the said Program, an orientation on the AGRICORP-AFLIP’s scope, policies, rules of guarantee coverage, mechanics of implementation, and operating procedures was conducted at the FICOBank Corporate Office on June 4, 2010. In attendance were the branch managers and loan officers of the Alicia, Santiago and Solano branches of FICOBank. These three branches of the Bank were chosen as the pilot operating units for this Agricultural Credit Guarantee Program. The Bank’s OIC-President and CEO, Ms. Soledad S. Cabantac, together with the Head of the Business Development Department and Regular Loan Unit Head of the Credit Department were also present during the orientation. The Acting Regional Head and Isabela District Supervisor of QUEDANCOR, Mr. Luisito Perez, conducted the one-day orientation. He was assisted by the credit and guarantee company’s district supervisors in Nueva Vizcaya and Cagayan, loan management officer, paralegal officer and information technologist.

As this is a co-financing program, the loan fund shall be shared on a 50-50 sharing scheme by QUEDANCOR and FICOBank based on the approved loans of the borrowers. All collections and incomes from the loan interests, service fees, surcharges and penalties shall, likewise, be equally shared by the parties. Once a loan account is in arrears for three consecutive months (or for one quarterly amortization) or when the loan account is not settled upon maturity, the Bank shall claim for guarantee payment from QUEDANCOR or, at the option of the former, foreclose the collateral in lieu of filing a claim.

The farmers, fisherfolk and rural/urban workers as well as the small retailers/wholesalers, cooperatives and other similar organizations that are engaged or will engage in highly profitable and sustainable agri-fishery and livelihood projects can avail of this credit assistance. This competitively-priced loan facility is designed to augment the working capital of the borrowers for marketing, processing, packaging/repackaging or distributing of raw, semi-processed or fully-processed agricultural, aquatic, poultry, livestock and other agri-related commodities and supplies. The amount that can be lent is up to P100,000.00 for non-collateralized loan and above P100,000.00 for collateralized loan. The loan term is up to three years, and the repayment may either be in installment or lumpsum depending on the type of each project.

This risk-guaranteed agricultural loan facility can help unleash the full potential of a borrower’s agribusiness. And with the productivities and successes of the demand-driven agri-fishery and livelihood activities of the loan recipients, more jobs, earnings and savings can be generated, thus, reducing the poverty incidence in the countryside.