Question & AnswerQ&A (CDA Resolution NO. 39)
The Cooperative Support Fund was formerly known as the Samahang Nayon Support Project (SNSP).
The Cooperative Development Authority (CDA) currently administers the Cooperative Support Fund as per CDA Resolution No. 39, s. 1993.
Section 10 of Republic Act No. 6939 directed the transfer of the SNSP to the Cooperative Development Authority.
The objectives include determining the capability of primary cooperatives to provide support services, field-testing new agricultural technologies, identifying appropriate farmer support mechanisms, and developing a network of services within cooperatives for effective program decentralization.
The CSF provides Marketing Loans, Facility Loans, Land/Building Loans, Merchandising Loans, and Operating Loans.
Duly registered primary cooperatives undertaking economic activities and not receiving financial assistance from other private or government lending institutions qualify as borrowers.
The maximum loan amount is P100,000.00 based on the actual needs of the project.
The borrower must provide a minimum counterpart equity contribution of 15% of the project cost.
The existing assets of the cooperative and the assets to be acquired out of the loan proceeds serve as loan security.
Marketing/Operating Loans and Land/Building Loans have an interest rate of not less than 8% per annum, while Facility Loans have an interest rate of not less than 6% per annum.
These loans are payable within a period of one (1) year.
Applicants must submit a loan application form, project feasibility study, cooperative General Assembly resolution, certification from CDA, listing of officers, latest financial and audited statements, and copies of registration, bylaws, and articles of cooperation.
The procedure involves filing an application with the CDA Area Extension Office, preliminary evaluation, endorsement to the Cooperative Finance Group, further evaluation and credit investigation, and recommendation for approval or disapproval by the Board of Administrators.
Loan proceeds are released via telegraphic transfer to a designated bank's local branch, kept in the cooperative's savings account, and disbursed only when the project is ready to operate, subject to approval by the Cooperative Finance Group.
If funds are unused within 60 days without justifiable reasons, the assigned CDS must communicate with CDA. If no changes or deferment are justified, the loan is recalled by the CDA.