Loans OK’d for COVID-19 hit MSMEs reach P6.7 billion

MANILA, Philippines — Over P6.7 billion worth of loans aimed at assisting micro, small and medium enterprises (MSMEs) affected by the COVID-19 pandemic have been approved, according to the financing arm of the Department of Trade and Industry (DTI).

The Small Business (SB) Corp. approved P6.7 billion worth of loans for 39,333 MSMEs under the Bayanihan COVID-19 Assistance to Restart Enterprises (CARES) program as of Aug. 15 this year.

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 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 P56.4 million for 1,024 repatriated OFWs as of the same period.

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.

Latest data from SB Corp. showed that it approved 753 applications under the CARES for TRAVEL program covering P337 million worth of loans.

Meanwhile, SB Corp. also approved 1,225 applications under its Resilient Innovative Sustainable Enterprises Unleash Your Power or Rise Up program worth P142.5 million.

The lending program, which was launched in May, aims to help sustain the gains and support the continued recovery of MSMEs.

Three types of loans are offered under the RISE Up program particularly a multi-purpose loan for different businesses; a loan for sari-sari stores, groceries, small dealers and distributors; and a loan for tourism establishments.

Borrowers can avail of loans amounting to P10,000 up to P5 million, without collateral.

Moreover, SB Corp. also reported that its Pondo sa Pagbabago at Pag-Asenso program has released a total of P11.22 billion worth of loans as of Aug. 15, which have benefited 264,457 MSMEs.

The P3 program is a financing initiative of the government to assist micro entrepreneurs throughout the country by providing affordable and cost efficient micro loans with 2.5 percent monthly interest.

The program provides an alternative source of financing for micro entrepreneurs that is easy and quick to access.