MANILA, Philippines - Small Business Corp. (SB Corp.) has released total loans of P5.2 billion under the wholesale microfinance lending program as of the first quarter of 2011. SB Corp. is a government agency allied with the Department of Trade and Industry (DTI).
From January to March this year alone, it released P387 million, doubled from P191 million in the same period in 2010.The loans were channeled through its 148 accredited microfinance institutions (MFIs) all over the country.
SBC president and chief operating officer Benel P. Lagua said loans to the livelihood sector now comprise 50 percent of its total loan releases of P769.17 million in the first quarter.
“This is a clear indication of SB Corp.’s steadfast commitment to intensify efforts for enterprise development among the poor.” Lagua said.
The target end-borrowers of SBC’s wholesale microfinance are pre-enterprise micros, from start-up to graduating micros, with funding needs of not more than P150,000.
From just P16 million in 2002, releases under the program cumulatively reached P5.2 billion in end-March.
“The performance of our microfinance programs vastly exceed our expectations,” Lagua explained.
SBC’s direct lending also increased 82 percent in the first quarter. This is due to the marked increase in enterprise lending by its North Luzon and Mindanao offices.
Overall, SBC has funded P29.8 billion in loans to micro, small and medium enterprises since 2002. It has also taken steps in going beyond financing by offering capacity building programs to both its enterprise clients and bank partners.
As of March 2011, SBC has trained 10 rural banks on the use of its risk-based lending technology and has three newly signed agreements with Country Rural Bank of Taguig, Cooperative Bank of Benguet and Banco Lagawe. It has also trained a total of 105 client and non-client entrepreneurs on enterprise enhancement, business planning and computerized accounting systems.
It likewise opened new desk offices in Palawan, Bacolod and Butuan.
Last year, loan releases reached P4.2 billion, from P2.9 billion in 2009.
In the same period, largest lending portfolio went to wholesale sector or to partner financial institutions (PFIs), which, in turn, lend to microentrepreneurs, small, and medium enterprises. PFIs are mainly thrift and rural banks as well as cooperatives.