EPAHP

Enhanced Partnership Against Hunger and Poverty

DESCIPTION

On 09 December 2019, after the PAHP has expired on the same year, a new MOU was executed implementing the Enhanced Partnership Against Hunger and Poverty (EPAHP) which replicates the strategies and mechanisms of the old PAHP focusing on enabling communities to participate in feeding programs and related activities of the government; thereby adopting a two-pronged approach of addressing hunger and poverty in the community, at the same time.

The EPAHP involves: (a) linking of CBOs to prospective markets like institutional feeding programs of the government; (b) provisions for institutional feeding programs of the EPAHP partner agencies; (c) credit assistance to support food production, processing, and marketing; and (d) adoption of Community Participation Procurement through a customized Community Participation Procurement Manual (CPPM).

OBJECTIVES

The program aims to:

provide credit assistance to qualified CBOs in support of the government’s efforts to help mitigate hunger, ensure food and nutrition security, and reduce poverty in urban and rural communities including the marginalized ones; and
encourage community participation in government contracts through the provision of credit services to qualified organizations for the said community to be able to service the needs of participating government agencies in the EPAHP.

ELIGIBLE BORROWERS

CBO as community-based service providers or farm service providers with legal personality to borrow such as:

Cooperatives
Agrarian Reform Beneficiary Organizations
Sustainable Livelihood Program Associations
Farmers Associations/Organizations
Irrigators Associations
Non-Government Organizations
Day Care Services Parents Group
Other qualified Farmer’s Organization and CBOs

Acceptance Criteria

CBOs that are:

Duly registered with concerned government agencies
Certified or endorsed by any participating agency that CBO is under EPAHP or listed in the EPAHP CBO database and has the following:
- Confirmed Marketing Contract, Purchase Order (PO), and/or Contract Receivables from any government agency or Local Government Units (LGUs); and
- No adverse findings on the CBO and its principal/key officers (subject to standard Credit Investigation/ Background Investigation of the Bank)

ELIGIBLE PROJECTS/LOAN PURPOSE

To finance POs and/or contract receivables from participating government agencies for the provision of needed food items required in various government programs, such as but not limited to the following:

Supplementary Feeding Program and regular meal for residential care facilities under DSWD
Feeding program for Persons Deprived of Liberty under the DILG;
School-based Feeding Program under DepEd;
DOH-Retained hospitals in-patient feeding;
Feeding program for pregnant women and children thru Early Childhood Care and Development or First 1000 Days Intervention under the DOH-National Nutrition Council; and
Other institutional feeding programs or regular food item requirements of national government agencies and LGUs.

LOAN FEATURES

Credit Facility

Short Term Loan Line

Interest Rate

5% per annum

Availability End Date/Loan Maturity

One (1) year loan line available via a maximum of 360-day Promissory Note (PN)

Loan Security/ Credit Enhancer

Any or combination of the following:

Loan Security
1. Deed of Assignment of Contract Receivables
2. Hold out on deposit, if available
Credit Enhancer - Post Dated Checks, if any

Repayment Period

Principal - payable upon maturity of the PN

Interest - payable in arrears to coincide with the principal payment

Loanable Amount

80% of the awarded contract price for goods following the latest threshold in the CPPM for EPAHP projects as follows:

PROCURING ENTITY	MAXIMUM AMOUNT (In Philippine Peso)
Participating National Government Agencies
DAR	2,000,000
DSWD	2,000,000
DA	2,000,000
Other participating government agencies, offices, or institutions	2,000,000
LGUs
1st - 3rd Class Province 1st - 2nd Class Cities Highly Urbanized Cities	1,000,000
4th Class Province 3rd Class City	800,000
5th Class Province 4th Class City	600,000
6th Class Province 5th - 6th Class Cities Municipalities Barangays	500,000

The above thresholds on contracts may be increased or amended based on the latest issuance of CPPM by the GPPB for EPAHP.

Mode of Release

Staggered -

Initial Release - up to 15% of the total contract amount upon submission to LANDBANK of the contract of agreement/PO with the procuring entity.

If the CBO has already delivered goods more than 15% of the value based on the contract, the Lending Unit (LU) may release the equivalent value as the initial release.

Succeeding releases - shall be based on the amount delivered to the procuring entity based on the delivery receipt/sales invoice of the borrower with a maximum of four (4) releases excluding the initial release. The LU must ensure that succeeding release/s shall be after the borrower has delivered at least 15% of the value of the contract and that total releases for the project do not exceed 80% of the contract amount or the approved loanable amount, whichever is lower.

For delivered goods, the LU shall ask for proof of delivery from the CBO such as delivery receipt and sales invoice duly received by the procuring entity, and/or progress billing report with acceptance by the procuring entity, or any other similar document.

Lump-sum - upon presentation of the borrower of documents (e.g., delivery receipt and sales invoice) that all items have been fully delivered and duly received by the procuring entity.

Penalty

3% per annum to start on the 61st day after the due date of loan up to the date of settlement

Fees and Charges

Standard Fees shall apply

Application fee and documentary stamp tax (DST), shall be shouldered by the borrower except for cooperatives with Bureau of Internal Revenue certificate of tax exemption which shall be exempt from paying the DST

1. Other Terms and Conditions
1. 1. The borrower/s shall allow LANDBANK to disclose client and loan/deposit information including his/her name, account number, amount of loan/deposit to the program partners, and Credit Bureaus.
1. 1. The borrower shall be required to open a Debt Service Reserve Account (DSRA) where the proceeds of collections from contracts shall be deposited. For this, the borrower shall submit a duly accomplished Authority to Debit form in favor of LANDBANK for the satisfaction of the loan.
1. 1. Any collection of the borrower from the procuring entity deposited in the DSRA can be applied immediately for the satisfaction of the loan amount due to LANDBANK.
  2. The borrower shall provide LANDBANK with a copy of the written notice to the procuring entity of the project that its receivable from the subject contract is/are assigned to LANDBANK.

MINIMUM DOCUMENTARY REQUIREMENTS

Pre-processing Requirements

Duly filled-out loan application form
Certificate of Registration with Cooperative Development Authority/Securities and Exchange Commission
Copies of approved agreements/contracts/POs, from participating government agencies
Certificate/endorsement from any EPAHP participating agencies that the CBO is eligible under the EPAHP or listed in the EPAHP CBO Database

Pre-release Requirement

Board Resolution authorizing the CBO to borrow and designating its authorized signatories

EPAHP brochure

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