Imagine a lifeline for MSMEs and small businesses, a bridge connecting aspiring entrepreneurs to the capital they desperately need. That’s precisely what the Credit Surety Fund (CSF) program aims to be, and its remarkable impact is now taking center stage.
The Bangko Sentral ng Pilipinas (BSP) and the Cooperative Development Authority (CDA) have joined forces to launch the “Credit Surety Fund Spotlight Forum Series,” an initiative designed to broadcast the triumphs of CSFs and inspire wider participation from cooperatives, banks, and local government units (LGUs).
Nueva Vizcaya’s CSF paves way for MSME growth with over P509 million in loans
Officers of the NVCSF led by its Chairperson Arnel Domincel (right photo, middle) during the kickoff of the “Credit Surety Fund Spotlight Forum Series.”
The series kicked off last June 3, 2025, with a resounding success story: the Nueva Vizcaya Credit Surety Fund Cooperative (NVCSF). This trailblazing cooperative was recognized with the CDA Gawad Parangal’s “Most Outstanding CSF Cooperative” award in both 2023 and 2024, a testament to its exceptional performance.
Since its establishment in 2020, the NVCSF has facilitated over P509 million in loans to its members, predominantly micro, small, and medium enterprises (MSMEs). These loans, backed by the CSF, empower businesses that might otherwise struggle to secure financing due to a lack of traditional collateral.
“This program helped a lot of our MSMEs in the province,” shared Nueva Vizcaya Governor Jose V. Gambito in a recorded message during the forum. “It is one of the vital components that served as the backbone of our economy.” His words underscore the profound economic ripple effect of the CSF program, transforming individual business growth into provincial prosperity.
At its core, a CSF acts as a guarantee for MSME loans, significantly reducing the risk for banks. These funds are managed by LGU-partnered cooperatives and are built through contributions from a diverse range of stakeholders.
This includes cooperatives, non-government organizations (NGOs), LGUs themselves, and key government financial institutions like the Development Bank of the Philippines, Land Bank of the Philippines, and the Philippine Guarantee Corporation. This collaborative funding model strengthens the collective capacity to support MSMEs. Both contributing cooperatives or NGOs and their individual MSME-members are eligible to borrow under the program, creating a robust ecosystem of mutual support.
Widespread engagement, growing reach signal bright future for CSF program
Bangko Sentral ng Pilipinas Managing Director Charina B. De Vera-Yap
During the event, BSP Managing Director Charina B. De Vera-Yap emphasized the critical need for continued collaboration and knowledge sharing to strengthen CSF cooperatives nationwide, saying, “We look forward to hearing from other CSF cooperatives. You help shape the future of the CSF program and inspire others to follow your lead.”
CDA Chairperson Alexander B. Raquepo echoed this sentiment, highlighting the broader significance of the program. “The CSF is more than just a guaranty mechanism,” he noted. “It is a bridge that connects cooperatives and MSMEs to formal lending institutions.” This “bridge” metaphor perfectly captures the essence of the CSF: it’s not just about financial transactions, but about fostering trust and accessibility within the financial landscape.
The inaugural forum, a hybrid event, saw enthusiastic participation with approximately 40 attendees on-site and 160 joining virtually. The audience comprised CDA officers and staff, the Board of Directors, members, officers, and staff of the NVCSF, and the Board of Directors of the Nueva Vizcaya Alay Kapwa Multi-Purpose Cooperative. Their presence underscored the widespread interest and commitment to the CSF program.
Currently, 46 CSF cooperatives are registered with the CDA across the Philippines, each one a potential beacon of economic empowerment. While the CDA is responsible for the registration, regulation, monitoring, and supervision of CSF Cooperatives, the BSP, which initiated this transformative program in 2008, continues to spearhead its promotion, creation, and organizational development.
The BSP also facilitates crucial technical assistance, including training and seminars, to ensure the continued growth and success of these vital cooperatives.
The “Credit Surety Fund Spotlight Forum Series” promises to be a powerful platform for celebrating these achievements and encouraging even greater adoption of the CSF model.
By shining a light on these success stories, the BSP and CDA are paving the way for more MSMEs to access the credit they need, ultimately contributing to a more vibrant and inclusive Philippine economy.
