Exporters' loan application can now be coursed through the PhilExport-Cebu, for endorsement to the Small Business (SB) Corporation, the implementing agency of the lending program.
The Sulong program was introduced in 2002 during the term of then DTI secretary, Senator Mar Roxas, was introduced in 2002.
In support to the National SME Development Plan, GFIs (Government Financial Institutions) collaborated to design a uniform lending program that is tailored fit to meet the funding needs of SMEs.
Under the unified lending program, the participating GFIs shall apply simplified and standardized lending procedures and guidelines, such as loan purposes, fee structure, interest rates, application forms, financial ratios, and other lending parameters, for evaluating the loan application of SMEs.
To adopt the financing needs of SMEs, two types of loans are available under the program, the short term (payable in one-year), and the long term (payable in five years).
The exporters, especially the small and medium companies had been pleading for the government's help starting last year, due to huge losses they incurred because of strong peso.
While the government has a strong policy not to intervene with the market's movement in the foreign exchange, it offered different forms of help to exporters, such as travel tax exemption, and the easier access to financial resources through GFIs.
Because of the dire need for exporters to recover foreign exchange losses, PhilExport-Cebu is now offering its services to facilitate loan applications in the Sulong program.
Other participating GFI's under the Sulong program, aside from SB Corporation are PhilExim, Quedancor, and Land Bank of the Philippines (LBP).
In November last year, the export sector in the Philippines called the attention of the government to prioritize its assistance to the industry to create effective programs that would allow easier access to financing.
PhilExport president Sergio R. Ortiz-Luis Jr. in an interview earlier, he said that the sector wants the government to strongly influence the implementation of existing laws which aimed at providing financial support to industries, especially the micro-small and medium enterprises (MSMEs).
"What we would like to happen is for the government to influence the compliance of Magna Carta for SMEs, and the Agri-Agra Law to be implemented well, rather than allowing usage of alternative compliance," said Ortiz-Luis.
According to Ortiz-Ruiz the strengthening of the peso has dampened the Philippine exports potential to grow, because of this there is a need for the government to intervene on the financial aspect.
While, Ortiz-Ruiz acknowledged the support from the Arroyo administration to help ease exporters' difficulties in coping with the negative effects because of the exchange rate movement, he reiterated that strong implementation of these two important laws (Magna Carta for SMEs, and Agri-Agra Law) is much important for the players.
In this way, he said banks will be forced to create programs to provide financing to the MSME, rather than introducing alternative vehicles to show compliance.