SB Corp to open loan program for MSMEs

MANILA, Philippines — The financing arm of the Department of Trade and Industry (DTI) will begin accepting loan applications from micro, small and medium enterprises (MSMEs), including those in the tourism industry, for the P10-billion fund under the Bayanihan 2 law on Oct.26.

In a statement yesterday, Small Business (SB) Corp. said it would be opening the Bayanihan COVID-19 Assistance to Restart Enterprises (CARES) program for applications on Monday.

The program, being implemented under the Bayanihan to Recover As One Act or Bayanihan 2, has allotted P10 billion to SB Corp. to expand the CARES.

Also to be made available under this fund is the CARES for Tourism Rehabilitation and Vitalization of Enterprises and Livelihood (CARES for TRAVEL) which has been allotted P6 billion.

Through the Bayanihan CARES program, SB Corp. wants to help businesses recover and retain its workers.

Based on the guidelines, MSMEs with Bureau of Internal Revenue (BIR)-filed financial statements for 2018 or 2019 and no major negative credit track record could borrow under the program.

MSME applicants who cannot submit a BIR-filed financial statement would need to submit their barangay or municipal business permits, photos or videos of business assets, and proof of sales for certain loan sizes.

“Loan amount to be granted will be based on the MSME applicant’s asset size and annual sales,” the DTI said.

To allow more MSMEs to benefit from the program, additional limits to the loan size will be observed.

Under the Bayanihan CARES program, loans will have a one-time front-end service fee ranging from four to eight percent depending on the number of years the applicant will pay.