We are honored to launch our new program of assistance for Filipino inventors, which will be done today, September 28, 2017, at the Philippine International Convention Center (PICC). We call this the “Innovation and Technology Lending Program”, or simply “I-TECH”.
I-TECH is a joint program of the Technology Application and Promotion Institute (DOST-TAPI) and the Land Bank of the Philippines (LandBank) to support the commercial production of patented Filipino inventions through a special financing window. DOST-TAPI, an attached agency of the Department of Science and Technology, is mandated to assist in the commercialization of Filipino inventions and manages the Invention Guarantee Fund (IGF) under the Inventors and Invention Incentives Act. LandBank, for its part, is opening a lending window that will complement the use of the IGF through a lower interest rate for loan assistance to qualified inventors.
Here is how it works:
(1) Qualified beneficiaries are inventors, enterprises authorized by inventors through a deed of assignment, and other entities with active patents, who may avail of credit facilities for the acquisition of fixed assets/capital expenditures/production materials and working capital for the production or commercialization of their inventions.
(2) The loanable amount is up to 85% of the total loan to be financed for maximum amount of P12.5M or up to the repayment capacity of the borrower, whichever is lower. Standard fees and charges normally required by banks shall apply for loan applications. Inventors who would avail must comply with the documentary requirements and collateral documents required by the bank.
(3) Landbank will cover 45% (up to maximum of P5.625 Million), the Invention Guarantee Fund (IGF) will cover 40% (up to maximum of P5.0 Million) and the borrower’s equity is 15% minimum, incash or in kind. The interest rate for LandBank share is 5% per annum (subject to annual review), while zero interest for the IGF.
Engr. Edgar I. Garcia, Director of DOST-TAPI, believes that this new program will provide a fresh way of meeting the inventors’ needs in funding the commercialization of viable invention products and ease their burden of raising additional capital to meet increasing market demand for their products.