Government opens loan facility for typhoon-hit MSMEs

MANILA, Philippines — The financing arm of the Department of Trade and Industry has set up a lending facility for micro, small and medium enterprises (MSMEs) that have been affected by Typhoon Odette.

In an advisory, the Small Business (SB) Corp. said it has opened the Enterprise Rehabilitation Financing (ERF) program for MSMEs in areas hit by Odette.

“The program is open to all MSMEs operating in areas declared under state of calamity due to the typhoon,” SB Corp. said.

An MSME with an existing loan with SB Corp. would be allowed to borrow a maximum of P800,000.

The loan would have an interest rate of six percent per annum, payable monthly up to three years, with repayment to start after maturity of the existing loan.

To avail, MSMEs with existing loans with SB Corp. will just need an online loan registration and application for the new loan.

For a new borrower or an MSME without an existing loan with SB Corp., the maximum loanable amount is P300,000.

The basis of the loan would be up to 50 percent of the value of the damaged inventory and/or fixed assets of the business, as assessed by SB Corp., but would not go beyond P300,000.

The loan would have an interest rate of six percent per annum, payable monthly up to three years, inclusive of up to 12 months grace period.

New borrowers will need to have a barangay permit in 2021 for loans not more than P50,000 or mayor’s permit for higher loans.

In case of lost documents, new borrowers will have to present certification by the DTI or by the local government unit (LGU) that the business was registered.

For MSMEs in the tourism sector, both existing and new SB Corp. borrowers may avail of the loan.

The total loan should not exceed P5 million per borrower, inclusive of existing loan.

Loans for tourism MSMEs would have a service fee of four to 10 percent depending on the loan term, based on the existing Bayanihan Coronavirus Disease 2019 Assistance to Restart Enterprises or CARES program service fee structure.

These loans would be payable monthly up to five years, inclusive of grace period of up to 24 months.

Tourism MSMEs, without existing loans with SB Corp., will be required to have a 2021 barangay permit for loans not more than P50,000 or 2021 mayor’s permit for loans of higher amount.

In case documents were destroyed by the typhoon, a certification by the DTI or by the LGU that the business was registered will suffice.

For loans exceeding P300,000, tourism MSMEs will need to have a 2020 financial statement filed with the Bureau of Internal Revenue; one-minute video showing the financial condition of the business; three photos showing damages to movable, perishable and fixed assets; and general information sheet from corporations and articles of partnership for partnerships.

SB Corp. is accepting applications through the loan portal at www.bayanihancares.ph.