HUBLAG is the development finance program of the Gerry Roxas Foundation. HUBLAG, a local term for “a movement,” opens access to economic opportunities by serving the micro credit needs of communities in Panay Island and Southern Mindanao, particularly in agricultural areas. Among Philippine microfinance NGOs, HUBLAG is recognized for its unique approach of lending to individual micro-entrepreneurs. The GRF HUBLAG mission is to organize, equip, and strengthen the economically active poor with skills and capital to “move” them and become sustainable and effective agents of community development.

HUBLAG began operations in 1987 with P500 loans for the working capital needs of 500 non-bankable micro-entrepreneurs. Today, HUBLAG microcredit operations have evolved to five service windows to respond to the credit needs of a wider range of clients.

By the end of 2007, HUBLAG served over 21, 000 clients through a network of 13 branch offices in 50 towns with an outstanding loan portfolio of P45.6 million. HUBLAG has been generating revenues since 1999 sufficient to cover all its real and market-based costs.

HUBLAG financial services and systems are patterned after those of formal financial institutions and are comprised of market-friendly product features, reasonable rates and timely services, credit risk controls, an automated and integrated management information system, as well as a responsive human resource development and incentive program. But different from banks which prioritize loans fully secured by collateral, HUBLAG extends credit based on the business potential, debt service capability, and payment history of a client.

HUBLAG aims for the sustained financial progress of its clients in terms of yearly improvement of their income or assets and their graduation from micro-enterprise to small business.

1. Micro-Enterprise Financing

   HUBLAG provides working capital or fixed asset financing loans to micro-entrepreneurs with one year business experience that show debt service capability. Businesses are evaluated on income performance per business cycle, and collateral is measured as a composite of client’s possessions.

2. Cottage Scale Business Financing

   Micro-entrepreneurs who have attained sustainable micro-scale operations yet need to expand can borrow from P30,000 to P200,000. The criteria are more stringent and include reviewing of their competence in planning for expansion. Additional and preferably, hard collateral is required.

3. Providential Financing

   Public and private employees require funds for regular lump sum disbursements of a providential nature that their monthly income cannot cover. Secured by a portion of his salary over six to twelve months, a fixed earner may avail of his fund need from HUBLAG.

4. Quick Assist

   A facility that timely responds to the community demands for services in the areas of transportation, communications, and cash transfers through PUV (public utility vehicle) operator loans, electronic single message sending load, and remittance services.

5. Pension Financing

   Retirees may access funds, the amount of which may be more than their month’s pension proceeds for their second career as micro-entrepreneurs, or for home improvements, and even for their grandchildren’s education. Window 5 provides four to six-month financing that can be amortized by the pension’s value net of basic household expenses.

1. Benefits have been extended to almost 21,000 clients to date.

2. Material growth in servicing the agricultural sector from 60% or Php26.9 M to 71% or Php32.5 M of total fund assistance portfolio.

3. Outstanding fund assistance portfolio up at Php45.6 M.

4. Assets size of Php82.5 M to date

5. 90% running average collection rate.

6. Portfolio-at-Risk level at 11%.

7. Majority or 77% of credit A-rated accounts comprised of agribusiness clients are engaged in rice and corn production, livestock raising, and fish culture, businesses that other financing agencies considered as high investment risks.

8. Service expansion not only in geographic scope but also in socio-political terms to include the Moslem communities as well as in varied economic ventures such as piña fiber production, catfish and tilapia culture, and mortuary services.

1. Roxas City
2. Panitan, Capiz
3. Pontevedra, Capiz
4. President Roxas, Capiz
5. Maayon, Capiz
6. Dumarao, Capiz
7. Mambusao, Capiz
8. Estancia, Iloilo
9. San Jose, Antique
10. Koronadal, South Cotabato
11. Polomolok, South Cotabato
12. Surallah, South Cotabato
13. Tacurong, Sultan Kudarat

ASSETS AND PORTFOLIO GROWTH (IN MILLIONS)