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Who are eligible to avail or set up an SSF Project?
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How can MSMEs use the SSFs?
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How do we avail or apply for the setting up of an SSF Project?
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What projects or industry facilities could qualify for the SSF Project?
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What types of equipment are being provided to the cooperators?
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Who takes ownership of an SSF Project?
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What will be the responsibilities of the cooperators and the DTI in the SSF Project?
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Can an individual rent the machine and bring it to his production area?
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Will the DTI still monitor the SSFs donated to the cooperator after the 2-year usufruct period?
The Shared Service Facilities (SSF) Project is a flagship program of the Department of Trade and Industry (DTI) aimed at improving productivity and efficiency of small enterprises through access to better technology. DTI, through the SSF Project, provides micro, small and medium enterprises (MSMEs) access to technology by granting eligible cooperators with machinery, equipment, tools, accessories, and other auxiliary items, skills and knowledge to be used by MSMEs and other potential entrepreneurs under a shared system.
An SSF Project is provided to an eligible cooperator, which must be willing to make the SSF accessible to MSMEs and other users. The cooperator could be a government or a private entity. The government cooperator may be a local government unit (LGU), national government agency (NGA), state university or college (SUC) or a technical school and other government training/ research institution while a private entity can be a non-government organization (NGO), people’s organization, cooperative, or industry trade/ business association.
Further, to be an eligible cooperator, the organization, whether a government or private entity, must be able to provide counterpart support in terms of suitable facilities to house the machinery and equipment, personnel, and working capital. If a private entity, the interested party must be registered with SEC, CDA or any appropriate agency that grants legal personality; must have a track record of at least 2 years; and must be strategically located to service the SSF beneficiaries.
There are more than 2,900 SSFs nationwide which are managed by government and private cooperators. MSME-clients that will use the facility are usually identified by the cooperator at the proposal stage. In the case of cooperatives and industry associations, MSME users could be their existing members. Other MSMEs that would like to avail of the services of a particular SSF may contact directly the cooperator of said facility. An MSME may need to pay the toll fee set by the SSF cooperator for every use of the equipment. Toll fees will be used for the sustainability of the operation of the facility in terms of cost recovery as well as the building of funds for the repair and maintenance of the facility, including the renewal of an all-risk insurance policies.
The directory of SSFs may be downloaded at the DTI website in the following link: https://dti-stg.beesites.net/business-center/shared-service-facilities/ssf-downloadables/ Interested clients may also email the Bureau of Small and Medium Enterprise Development (BSMED) at [email protected] or the concerned DTI Regional and Provincial offices
Interested parties may coordinate with the nearest DTI Regional/ Provincial Office to inquire about the SSF Project or submit/discuss their proposed projects for evaluation. The SSF Regional Technical Working Group (SSF-RTWG) designated by the Undersecretary for Regional Operations Group screens, evaluates, and approves project and its cooperator for the respective region. Depending on the amount of the project, the evaluation may pass through the following TWGs:
- SSF-Regional Technical Working Group for SSF Project proposals with cost up to a maximum of Five Million Pesos (Php 5,000,000.00)
- SSF-National Technical Working Group for SSF Project proposals with a cost exceeding Five Million Pesos (Php 5,000,000.00)
The SSF Project provides facilities to support MSMEs, in particular micro and small enterprises engaged in the production process of various industries such as processed food, coffee, cacao, dairy, fruits and nuts, coconut, marine products, bamboo, furniture, metals, rubber, renewable energy, among others. Projects that will improve One Town, One Product (OTOP) products or other priority sectors of the province or region shall also be considered.
Projects must be able to address processing and manufacturing gaps or bottlenecks caused by the absence of needed facility, low capacity of the existing facility, or the cost of services of an existing facility is not affordable. Ultimately, the SSF must improve product quality and MSME competitiveness.
The SSF provides basic tools and equipment and sophisticated machineries as well to help MSMEs upgrade their operations. The Project has provided simple machines such as as food mixers and sealers for food processing, twining and weaving machines for coco coir production, and loom weaving and sewing machines for garments and handicrafts while some sophisticated machines provided to cooperators include Kjedahl apparatus and UV-Vis spectrophotometer for food analysis, CNC router and 3D printers for prototyping in fabrication laboratories, and heavy duty rip saw, grinder and hot press machine for bamboo or wood working to name a few.
The DTI provides the legal rights to an eligible cooperator to use the DTI-SSF machines and equipment for the use of MSME beneficiaries under a usufruct agreement. The term is two (2) years and thereafter the DTI may grant ownership of the SSF to the cooperator by way of a donation if it passes the criteria set for evaluating the project’s success.
A Memorandum of Agreement will be executed between the DTI and the SSF Cooperator providing in details their responsibilities. Among the responsibilities of DTI include: procurement of the equipment, granting free use of SSF to the cooperator, provision of insurance for 2 years, provision of other technical assistance, and monitoring of the SSF. The cooperator, on the other hand, shall operate, perform, repair, maintain, ensure safekeeping and recognize DTI’s ownership of the SSF. The cooperator shall also ensure to provide the facilities to house the equipment and other counterpart such as power, working capital and personnel, and submit physical and financial accomplishments to DTI.
No, the machines are meant to be kept intact in the facility provided by the cooperator. Users may request the cooperator for the desired schedule.
Yes, the DTI shall conduct on-site monitoring of the SSF for a period of one (1) year after its ownership has been successfully transferred to the cooperator to ensure that project objectives are sustained.
For more details, you may visit DTI SSF Microsite: https://dti-stg.beesites.net/business-center/shared-service-facilities/
