SSS lends P1.2 billion to SMEs

MANILA, Philippines - The Social Security System (SSS), has so far extended a total of P1.2 billion in loans to micro, small and medium enterprises under a credit program implemented by government financial institutions such as the SSS.

SSS president and chief executive officer Romulo Neri said the agency released the loans over the past five years under the SULONG program or the Small Unified Lending Opportunities for National Growth.

The program, put in place by the Arroyo administration, was created to help businesses with total assets of no more than P100 million. Under the program, government financial institutions extend loans to micro and small and medium enterprises under manageable terms to help them expand their businesses.

The SSS shares the government’s aim to spur economic growth by helping micro and small and medium enterprises, which make up over 99 percent of registered businesses in the country, gain wider access to credit through the SULONG program,” Neri said. 

The state-run pension fund provides SULONG loans of up to P5 million which are payable within five years, including a maximum one year grace period. SSS releases the SULONG loans through banks.

Government financial institutions particularly the Land Bank of the Philippines (Landbank) and the Development Bank of the Philippines (DBP) extended loans also under the SULONG program. Landbank so far extended P93 billion while DBP extended P54.7 billion.

Other participating GFIs are the Small Business (SB) Corp., Quedan Rural Credit and Guarantee Corp., Philippine Export and Import Credit Agency and National Livelihood Support Fund.

SB Corp. president and SULONG Finance Committee chair Benel Lagua said the SULONG program draws its success from efforts of GFIs and stakeholders in the private and public sectors such as the partner financial institutions (PFIs).

“The PFIs help expand the program’s reach since their presence in the rural areas makes it easier for SMEs to access SULONG funds,” Lagua said.

The government granted a total of P170.3 billion in SULONG loans for nearly 150,000 SMEs since 2004, according to data from SB Corp., which is the program’s lead convenor.