The 49th Credit Surety Fund in the country was launched last 08 September 2017 in the City of Santa Rosa, Laguna. The Memorandum of Agreement (MOA) officially creating the City of Santa Rosa Credit Surety Fund (City of Santa Rosa CSF) was signed at the City Auditorium, New Government Center, City of Santa Rosa, Laguna. Monetary Board Member Felipe M. Medalla and City of Santa Rosa City Mayor Danilo Ramon S. Fernandez led partner institutions, cooperatives and various stakeholders in the signing of the MOA, marking the creation of the City of Sta. Rosa CSF.
Initiated by the Bangko Sentral ng Pilipinas (BSP) in August 2008, the CSF is a credit enhancement program for the micro, small and medium enterprises (MSMEs) that cannot access bank credit due to lack of acceptable collaterals, credit knowledge and credit history. It is created through the pooling of monetary contributions from cooperatives, non-government organizations, local government and partner institutions. The fund serves as alternative security in lieu of the hard collaterals required by banks, thereby helping capital-short MSMEs with viable business plans gain access to bank financing.
Nine qualified cooperatives joined the City of Santa Rosa CSF, contributing an aggregate amount of P1.2 million. In support, the City Government of Santa Rosa pledged P3.0 million to the fund. Partner institutions such as the Development Bank of the Philippines, Land Bank of the Philippines and the Industrial Guarantee and Loan Fund are also expected to put up counterpart contributions to the City of Santa Rosa CSF.
Now on its 9th year, the CSF operates in 31 provinces and 18 cities nationwide. As of 30 June 2017, a total of P3.50 billion in bank loans have been released to 16,459 beneficiaries.