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Purchase Order Financing Program (PO Financing)

Opportunity Status:

OPEN

Funders:

Technology Application and Promotion Institute (DOST-TAPI)

Funding type:

Repayment

Closing date:

1st Wave: 29 April 2022 | 5:00 PM

2nd Wave: 15 August 2022 | 5:00 PM

Submit through:

email This email address is being protected from spambots. You need JavaScript enabled to view it.

Link to Documents:

Program Guidelines, project proposal templates, and other relevant documents can be found at this link.

Description:

The Purchase Order Financing Program (PO Financing) is a program of the Technology Application and Promotion Institute (DOST-TAPI) that advances the cost of raw materials to facilitate the purchase orders of qualified micro, small and medium enterprises (MSMEs). It is a funding assistance that allows Proponents to finance the fulfillment of irrevocable purchase orders or contracts with credit worthy customers.

1. Food Processing
2. Furniture
3. Gifts, Decors, and Handicrafts
4. Agriculture or Marine or Aquaculture
5. Metals and Engineering
6. Information and Communication Technology (ICT)
7. Pharmaceuticals, Health, and Wellness products
8. Manufacturing and Industrial processing

Eligible proponents for this Program are Filipino-owned MSMEs assisted previously by SETUP, DOST-TAPI, or other DOST Agencies, or MSMEs that adopted DOST-funded/generated technologies. They should be duly registered Sole Proprietors or Corporations or Partnerships or Cooperatives at least sixty percent (60%) ownership of which belongs to Filipino Citizens.

Proponents must be able to meet the conditions below to apply:

  1. Filipino-owned MSMEs previously assisted by SETUP or other DOST Agencies:
    1. If applying for 1st Cycle, they must be fully refunded and/or has no remaining obligations
    2. If applying for 2nd Cycle, they must be they must be fully refunded and/or has no remaining obligations. They must also be fully refunded and liquidated if they also availed of the 1st Cycle.
  2. Filipino-owned MSMEs with on-going SETUP project:
    1. If applying for 1st Cycle, they must have already paid 6 months amortization equivalent with at least 6 months grace period.
    2. If applying for 2nd Cycle, they must have good credit standing AND has refunded at least 50% of total existing SETUP assistance. They must also be fully refunded and liquidated if they also availed of the 1st Cycle.
  3. Filipino-owned MSMEs previously assisted by DOST-TAPI:
    1. If applying for 1st Cycle, they must have fully refunded and/or liquidated AND have not previously availed LIGTAS-COVID-19 assistance.
    2. If applying for 2nd Cycle, they must be they must be fully refunded and/or liquidated. They must also be fully refunded and liquidated if they also availed of the 1st Cycle.
  4. Filipino-owned MSMEs who adopted DOST-generated/funded technologies:
    1. If applying for 1st Cycle, they must have valid TLAs with DOST-RDI AND TLA should be valid within the project term.
    2. If applying for 2nd Cycle, they must have valid TLAs with DOST-RDI AND TLA should be valid within the project term. They must also be fully refunded and liquidated if they also availed of the 1st Cycle.

NOTE: An eligible proponent may avail of the 2nd Cycle of this Program without first availing of the 1st Cycle, in which case the said proponent will no longer be eligible to avail of the 1st Cycle of the Program.

The Program covers ONLY the cost of direct raw materials needed to produce products or goods for a specific requirement of the target market, as reflected on the valid and unserved POs.

The Program will cover seventy percent (70%) of the project cost which shall be refunded by the proponent without interest. At least thirty percent (30%) of the project cost shall be covered by the proponent.

The program has two funding cycles. DOST-TAPI shall cover a maximum of:

1st Cycle: ₱1,000,000
2nd Cycle: ₱2,500,000

The period of refund shall not exceed three (3) months after the release of funds in addition to a three (3)-month grace period.

  1. The project proponent shall prepare a full-blown project proposal and formal application letter, along with the complete requirements;
  2. The project proponent must send a copy of the full-blown project proposal and formal application letter in PDF format, along with the complete set of requirements, via email through This email address is being protected from spambots. You need JavaScript enabled to view it.. Submissions with incomplete requirements and/or sent beyond the deadline shall be returned to the Project proponent;
  3. The DOST-TAPI shall acknowledge receipt of the successful submission through email; and
  4. The DOST-TAPI shall inform the project proponent, through the contact information provided, regarding the status of his/her proposal.

Note: the full list of forms and requirements can be found at this link.

  1. Proponent's application letter and commitment to avail the financial assistance addressed to TAPI Director
  2. Duly-Accomplished Data Privacy Consent Form
  3. FULL BLOWN PROJECT PROPOSAL/ Feasibility Study which includes:
    a. Company's Background;
    b. Marketing Aspect;
    c. Technological Aspect;
    d. Waste Management/Disposal/ Social Aspect; and
    e. Financial Aspect
  4. Endorsement of Regional Director with Initial Regional Assessment of the project
  5. Initial Regional Assessment of the project/ Status of previous assistance provided 
  6. Copy of business permits and licenses (Mayor, DTI, BFAD-LTO, Halal, etc.)
  7. Certificate of registration of business name with SEC, or CDA and Articles of Partnership or Incorporation / By-Laws (for Corporation)
  8. Notarized Board Resolution or Secretary's Certificate authorizing the borrowing and designating authorized signatories for the financial assistance (for Cooperative/Corporation)
  9. Certified list of stockholders and officers (if a corporation) with brief bio-data of applicant/ major stockholders and officers
  10. Audited Financial Statement for the past three (3) years
  11. Interim Financial Statement to assess the current financial viability (if necessary)
  12. Affidavit of authenticity

Note: the full list of forms and requirements can be found at this link.

Projects submitted must obtain at least a 75% score with the following criteria:

Technical Aspect – 20%
Marketing Aspect – 30%
Financial Aspect – 30%
Socio-Economic Impact and Compliance to Requirements – 20%

DOST-TAPI Public Assistance
Office Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Tel. No.: 8837-2071 local 2153