COVID-19 loans for MSMEs reach P4.3 billion

MANILA, Philippines — Loans approved by the financing arm of the Department of Trade and Industry (DTI) to assist micro, small and medium enterprises (MSMEs) affected by the COVID-19 pandemic have reached P4.3 billion as of end-May.

Trade Secretary Ramon Lopez said during the launch of the Negosyo Center online portal yesterday that the loans approved under the COVID-19 Assistance to Restart Enterprises (CARES) program benefited 29,816 enterprises.

“We are close to using up our allocation of P5 billion including the initial P1 billion that came from our budget plus the P4 billion under Bayanihan 2,” he said.

Under the Bayanihan 2 law, P10 billion was allotted to the CARES program administered by the Small Business (SB) Corp.

Apart from MSMEs, the P10 billion allocation for the CARES program covers tourism establishments and repatriated overseas Filipino workers looking to start their own business.

Lopez said 90 percent of the approved applications were made online.

He said the DTI has been moving many of its services online as part of its digital transformation initiative.

The effort includes the launch of the Negosyo Center online portal (dtinegosyocenter.online) which would make DTI services available to both existing and aspiring enterprises through their smartphones or computers.

Trade Undersecretary Blesila Lantayona said there are at present 1,187 physical Negosyo Centers nationwide, covering 73 percent of all provinces, cities and municipalities.

As of end-April, she said the Negosyo Centers have assisted 177,869 MSMEs, 318,156 clients and issued certificates of authority to 31,041 barangay micro business enterprises.

“Given the restrictions we are facing because of the pandemic, the need for an online contact free platform is paramount,” she said.

Lopez said making DTI’s services accessible by putting them online is also in line with Republic Act 11032 or the Ease of Doing Business and Efficient Government Service Delivery Act which seeks to curb red tape and expedite government transactions.

“The benefits of this upgraded service are certainly undeniable. Not only will digitalization extend DTI’s reach in helping micro, SMEs through our various entrepreneurial projects nationwide, it will also push entrepreneurship in the country,” he said.