MANILA, Philippines — The financing arm of the Department of Trade and Industry is encouraging businesses that intend to restart operations to still apply for loans under a program catering to those affected by the COVID-19 pandemic.
In a statement, the Small Business (SB) Corp. said businesses may still apply for interest-free, collateral-free loans under the COVID-19 Assistance to Restart Enterprises (CARES) program by creating an account at www.BayanihanCARES.com.
To date, a total of P4.84 billion worth of loans for 31,700 applications had been approved by SB Corp. under the program.
Businesses may borrow P10,000 up to P5 million depending on their pre-pandemic sales and asset figures.
Loans are payable up to a maximum of four years, inclusive of a maximum grace period of 12 months for non-tourism micro, small and medium enterprises (MSMEs) or a maximum grace period of 24 months for tourism establishments accredited by the Department of Tourism or registered as barangay micro business enterprise.
The loans also have a one-time service fee set at a maximum of eight percent for a four-year loan term, while shorter term loans have a lower service fee.
To enable more MSMEs to apply for loans under the CARES program, SB Corp. has adjusted the requirements.
MSMEs that have been operational for at least one year as of their date of application may now qualify for the loan.
Previously, MSMEs had to be operational for at least one year before March 16, 2020 or when the community quarantine was imposed in the country to qualify.
It is important to emphasize that SB Corp. is focused solely on helping make funds available for small business owners, SB Corp. president and chief executive officer Ma. Luna Cacanando said.
“We do not compete with what is already working in the market. What we need to do is fill in the gaps for small businesses that banks and lending companies do not yet find attractive to finance relative to their profit objectives and cost management thresholds. We develop and operate our financing programs for MSMEs along these lines,” she said.