Financing program for private schools approved

THE Social Security Commission recently approved its financing program for private educational institutions in a bid “to improve access to better educational facilities and to enhance productivity in the economy.”

Maximum loanable amount shall be 75 percent of the project cost but not to exceed P150 million for elementary/secondary private schools; P250 million for college; and P350 million for private universities, said the Commission in Resolution 737-2011, which approved the amendments to the guidelines of the business and social loan programs under the Omnibus Credit Line.

The loan, which shall be made available through the conduit banks or participating financial institutions, should be for the construction, rehabilitation/repair or reconstruction of school buildings including gymnasium, library and other facilities like the sports complex, multi-purpose, covered court, and track and field oval; as working capital; purchase of existing structure/building/facilities, which involves its rehabilitation, reconstruction, renovation or upgrading; acquisition or upgrading of machinery and equipment, furniture, fixtures and furnishings, including books and other educational materials; or to buy land.

Eligible borrowers include new or existing private educational institutions in all levels as well as vocational/technical institutes duly licensed by the Department of Education and the Commission on Higher Education.

“New schools should be able to justify projection of viable operations and to demonstrate an acceptable track record of performance for its proponents in the educational field or in any similar enterprise,” said commission chairman Juan Santos.

Repayment term shall be determined on the basis of the projected cash flow of the project but shall not be more than 15 years, including a grace period of three years on principal from the first release of the loan.

“On the fourth year and thereafter, the loan shall be payable monthly, quarterly or semi-annual in equal principal amortization or equal amortization,” he said, adding the program complements the government's effort to develop a larger pool of professionals and skilled workers which would support industrial and agricultural expansion. (CGC)