SB Corp rolls out P1.5 billion loan program for MSMEs

MANILA, Philippines — The financing arm of the Department of Trade and Industry (DTI) has rolled out two programs with a total of P1.5 billion worth of loans available for micro, small and medium enterprises (MSMEs).

By next month, the Small Business (SB) Corp. expects to launch three more lending programs to support MSMEs particularly, those in the creative and halal industries.

Speaking at the launch last Friday, SB Corp. president and CEO Robert Bastillo said the Business Expansion program, with a total loanable fund of P1 billion, aims to support newly established businesses or those operating for less than one year.

“We will provide what they need for expansion, including, of course, additional working capital,” he said.

Under the program, SB Corp. will provide loan amounts ranging from P50,000 to P3 million, with flexible payment terms of up to three years.

The loans are at zero interest rate for the first 12 months, followed by a monthly interest rate of one percent based on diminishing balance for the remaining months.

Loan applicants under the Business Expansion program are required to submit their mayor’s permit, DTI or Securities and Exchange Commission registration, government-issued ID, proof of bank account, as well as their business plan.

Also launched last Friday was the purchase order (PO) Financing program, with a total fund amounting to P500 million, aimed at helping MSMEs serve purchase orders and meet high or growing consumer demands that will sustain their business growth.

The PO Financing program is open to MSMEs that have successfully served a minimum of three POs within the past three years.

MSMEs may borrow up to 80 percent of the indicated value in their PO.

Loans to be offered under the program amount to P30,000 up to P20 million, with a monthly interest rate of one percent.

The program features an increasing credit line of up to P20 million and the option of multiple drawdowns against the approved credit limit.

Loan applicants will need to submit a barangay certification for loans up to P100,000.

For loans exceeding P100,000, a mayor’s permit or a Barangay Micro Business Enterprise certificate will have to be provided along with a government-issued ID, proof of bank account and other relevant corporate documents including proof of sales as applicable.

Bastillo said the SB Corp. is set to launch three other financing programs to support MSMEs. These are the P200 million Receivables Financing, P500 million Creative Industry Fund and P500 million Halal Financing.

“We should be launching these by February,” Trade Secretary Cristina Roque said.

With MSMEs accounting for 99.5 percent of the country’s business establishments and 62 percent of the workforce, she said these businesses will need to be supported.

“If we drive this sector, then we can also drive the economy. A big part of this is a contributor to our GDP (gross domestic product). So it’s something that we must push,” she said.

SB Corp. is accepting loan applications through its Borrower Registration System portal at https://brs.sbcorp.ph.