Government extends P6.6 billion loans to pandemic-hit small firms

MANILA, Philippines — Approved loans under a facility to assist micro, small and medium enterprises (MSMEs) affected by COVID-19 have reached P6.59 billion, the financing arm of the Department of Trade and Industry said.

Data from the Small Business (SB) Corp. showed it approved P6.59 billion worth of loans for 39,242 MSMEs under the Bayanihan COVID-19 Assistance to Restart Enterprises (CARES) program as of Dec.31, 2021.

Through the Bayanihan CARES, MSMEs can avail of loans to help them recover from the adverse effects of the pandemic.

Loans under the facility are interest-free and collateral-free.

Borrowers will only need to pay a one-time service fee, which is set at a maximum of eight percent for a four-year loan term.

The loans have a grace period of up to one year.

As for the Bayanihan CARES Helping the Economy Recover Through Overseas Filipino Worker (OFW) Enterprise Startups (HEROES) component, approved loans reached P48.04 million for 854 repatriated OFWs as of Nov. 30, 2021.

Through the Bayanihan CARES HEROES, the government is providing an opportunity for displaced, repatriated or returning OFWs to start anew by helping them establish their businesses.

Those applying for loans under the Bayanihan CARES HEROES will have to complete an online training with the Philippine Trade and Training Center before proceeding with the application.

The Bayanihan CARES also has a Tourism Rehabilitation and Vitalization of Enterprises and Livelihood or TRAVEL component to help tourism-related enterprises bounce back from the impact of the pandemic.

MSMEs can submit applications for the Bayanihan CARES by going to the SB Corp.’s website www.sbcorp.gov.ph.