Gov’t loans under SME unified lending program hits P95.71B

Government lending under the SME Unified Lending Program for National Growth (SULONG) as of April this year has reached P95.71 billion and generated jobs for 1.2 million Filipinos, according to Trade and Industry Secretary Peter B. Favila.

Favila said that before the SULONG program was launched in February 2003, SME lending in 2002 amounted to only P18.9 billion.

Under the SULONG program, SME lending went up to P26.76 billion in 2003; P27.05 billion in 2004 and up to P31.59 billion in 2005.

The increased lending, Favila said, was due to the facilitation of SME’s access to financing and support services through the Development Bank of the Philippines, Land Bank of the Philippines, National Livelihood Support Fund, Philippine Export-Import Bank, Quedancor and the SB Corp.

Favila foresees increased financing access even by micro businesses with the recent decision of the Department of Finance to reduce the current nine requirements for Barangay Micro Business Enterprises (BMBE) applicants with asset size of P300,000 or less to just two requirements.

The government had previously announced that it is allocating P310 billion over a five-year period from 2005 to 2010 for lending under the SULONG program.

Funding for the SULONG comes from various sources that include the LBP, DBP, SB Corp., Quedancor, PhilExim, NLSF and the Social Security System (SSS).

In 2006, the target lending is set at P34.56 billion, increasing to P41.47 billion by 2007 and hitting P49.77 billion by 2008.

In 2009, the target lending will be P59.72 billion and will reach P71.66 billion by 2010.

The repayment or collection rate for the SULONG is a respectable 90 percent.

Micro enterprises are defined as those with assets amounting from P150,000 up to P3 million.

Small enterprises are defined as those with assets amounting from P3 million up to P15 million.

Medium enterprises are defined as those with assets amounting from P15 million up to P100 million.