Corporate strategy for small business Guarantee and Finance Corporation

• Main Author: Iturralde, Ma. Carmen I.
• Format: text
• Language: English
• Published: Animo Repository 1996
• Subjects: Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/2169
• Institution: De La Salle University

Small Business Guarantee and Finance Corporation is a government corporate body created on January 24, 1991 by virtue of Republic Act 6977, otherwise known as the Magna Carta for Small Enterprises. As the financing arm of the Magna Carta for small Enterprises, SBGFC is mandated to offer a wide range of financial services such as guarantee, direct and indirect lending, financial leasing, secondary mortgage, venture capital operations, and the issuance of debt instrument for compliance with the mandatory allocation provision of RA 6977. SBGFC belongs to the financial services industry which caters to the financing needs of clients. The industry is composed of various types of bank and non-bank institutions such as investment houses, financing companies, investment companies, securities dealers/brokers, pawnshops, lending investors, ventures capital corporations, stock and non-stock savings and loan associations, mutual building and loan associations, government financial institutions, and insurance companies. Keener competition in the industry is expected as a result of several liberalization measures introduced recently, one of which is the enactment of Republic Act No. 7721, the bill liberalizing the entry and scope of operations of foreign banks in the Philippines.