Filipino investors and technology innovators may now avail of financial financing through the latest collaborative funding scheme “Innovation and Technology Lending Program or I-TECH.”
Ma. Lilibeth P. Padilla, head of the Public Affairs Unit of the Science and Technology Information Institute (STII)-Department of Science and Technology (DOST) told PNA here on Tuesday that the new program is under the auspices of the DOST-Technology Application and Promotion Institute (TAPI) and Land Bank of the Philippines.
Padilla said that the I-TECH collaborative program of DOST-TAPI and LandBank aims to support the commercial production of patented Filipino inventions through a special financing window which was launched Sept. 28.
DOST-TAPI Director Edgar I. Garcia expressed optimism that the new program “provides a fresh way of meeting the inventors’ needs in funding the commercialization of viable invention products.”
Garcia added that the funding scheme would ease the burden among Filipino inventors and technology innovators of raising additional capital to meet increasing market demand for their products.
As an attached agency of the science and technology department, TAPI is mandated to assist in the commercialization of Filipino inventions and manages the Invention Guarantee Fund (IGF) under the “Investors Incentives Act of the Philippines” or Republic Act No. 7459.
Under the program , LandBank provides a lending window that will complement the use of the IGF through a lower interest rate for loan assistance to qualified inventors.
Garcia said TAPI screens the qualified beneficiaries — inventors or enterprises authorized by inventors through a deed of assignment and other entities with active patents.
The financing program provides the qualified beneficiaries with credit facilities from LandBank for the acquisition of fixed assets/capital expenditures/production materials and working capital for the production or commercialization of their inventions.
The loanable amount is up to 85 percent of the total loan to be financed for maximum amount of PHP12.5 million or up to the repayment capacity of the borrower, whichever is lower.
Like any standard requirement by banks, loan applicants have to pay the standard fees and charges and comply with the documentary requirements and collateral documents as required by LandBank.
Landbank will cover 45 percent or up to maximum of PHP5.625 million, the Invention Guarantee Fund (IGF) will cover 40 percent of up to maximum of PHP 5.0 million and the borrower’s equity at 15 percent minimum, in cash or in kind.
The interest rate for the LandBank share is 5 percent per annum subject to annual review but zero interest on the part of the IGF.
Filipino investors and technology innovators may contact Engr. Elizabeth I. Garcia who manages the ‘I-TECH’ through telephones (02) 837-2071 to 82 local 2160; (02) 838-1140 or TAPI’s protected email address at firstname.lastname@example.org. (PNA)