The NLSF traces its origins to the Kilusang Kabuhayan at Kaunlaran or KKK, created on September 29, 1981 to hasten countryside socio-economic development through the establishment of various livelihood projects nationwide. The KKK has since evolved through subsequent administrations to ultimately become the NLSF. Then, Republic Act 6657 transferred the NLSF under the supervision of the Land Bank of the Philippines which mandated the use of NLSF to support the agrarian reform programs and the projects intended for the farmer-beneficiaries.
Today, it actively pursues a package of livelihood and enterprise development programs and interventions to significantly widen its geographical outreach and make itself more accessible primarily to small farmers and other marginalized households in the agrarian reform communities (ARCs). These sectors at the bottom rung of the economic ladder are served by NLSF, not only by making financing available to them but also by engaging them in capability-building programs. The apparent objective is to spawn a flurry of livelihood activities and enterprises of productive people contributing to the development of their communities.
A) LIVELIHOOD CREDIT ASSISTANCE PROGRAM (LCAP)
Program Objective: To provide livelihood and enterprise development assistance to small farmer beneficiaries in the agrarian reform communities (ARCs) and members of the marginalized sectors by providing access to micro credit through accredited NLSF program partners/conduits, supported by capability building/institutional development interventions.
– Rural Financial Institutions (RFIs)
– Non-Government Organizations
– Agrarian reform beneficiaries/small farmers and their wives/dependents in the ARCs
– Other non-farmer and marginalized households in the ARCs and Kalahi zones
Revolving Credit Line – funds for relending to finance the livelihood project requirements of end borrowers
Developmental Loan – Loan amount shall be to a maximum of 10% of the Conduit’s total loan outstanding. At least 50% of the credit line should have been utilized before it can be availed. The loan is to be used specifically for the following purposes:
– For the conduct of capability-building/training of staff of the conduit handling NLSF livelihood credit program and the conduct of social preparation activities for the end borrowers.
– For logistic support expenses as allowed by NLSF and depending on its assessment of the needs of the client.