National Food Authority introduces their newest loan lending program-the Corn Development Fund (CDF) to cooperative of corn farmers, associations, federations, industry associations, federations of livestock, poultry raisers, and feed millers registered to the Cooperative Development Authority (CDA) or the Securities and Exchange Commission (SEC).
The program was first introduced by National Food Authority (NFA) Manager Elizabeth Kai during the first-Monday flag raising ceremony for February 2019 at the Capitol Grounds.
Kai said NFA-Abra plans to have the meeting with associations and cooperatives by March.
Corn Development Fund (CDF) is a loan lending program of NFA to fund projects toward the development of the corn industry, acquisition of modern facilities, enhance skills and productivity through workshop and trainings, hold corn-related activities, and adoption of mechanism that will link various sectors of the corn industry to promote growth and development.
The CDF can be availed in two schemes: the grant and loan. A maximum of P500,000 can be availed under the grant scheme to be used on developmental projects and human resource development.
The loan scheme can be availed to fund the construction of a corn storage facility or purchase of production and post-harvest facilities for corn. The loan shall be secured by a Real Estate or Chattel Mortgage, and payable semi-annually for five, seven, or ten years and will bear a 2% interest rate per annum. The loan may be availed at a minimum of P3 million and maximum of P10 million or an amount approved by the CDF committee.
The Provincial Support Group (PSG) composed of the NFA manager and provincial staff will conduct the initial screening of applicants and monitor the implementation of the project.
Procedures are as follows:
- The Proponent must submit an application letter to the PSG addressed to the chairman of the Corn Development Committee together with the following basic eligibility requirements:
- Project Proposal (for loan applicants)
- Proposal Brief (for grant applicants)
- Audited financial statements (3 years)
- Certified copy of CDA/SEC Certificate of registration
- Articles of incorporation by-laws
- CDA/SEC Certificate of good standing
- LGA/MAO Certificate that the project area is planted with corn stating the average yield per hectare
- Photocopy of land titles offered as collateral
- PSG conducts an initial screening of proponent’s eligibility based on the document submitted. Those considered initially qualified shall submit additional requirements:
- Detailed project proposal (for loan applicants)
- Projected financial statements (as may be required)
- Board resolution authorizing the proponent to apply for a loan/grant and authorizing at least two officers to represent the proponent in all its transactions
- ID pictures and specimen signatures of the two authorized officers
- Supplier’s price quotation (at least 3) and canvas sheet if purpose includes the purchase of equipment
- Information sheet of each member of the Board of Directors and Officers (for loan applicants)
- Current bank certificate from Land Bank of the Philippines and/or other banks where the proponent had business dealings for the past two years (for loan applicants)
- PSG will submit the proposal and supporting documents of initially qualified proponents to the Technical Working Group (TWG) for evaluation.
- The PSG/TWG informs the beneficiary o the approval of its project and advises it to submit additional requirements if necessary.
- Signing of MOA/loan agreement by the Corn Development Committee and beneficiary
For inquiries, you may call NFA-Manager Elizabeth Kai at 09178076928.