Over P2 billion loans released to COVID-19 affected MSMEs

MANILA, Philippines — Loans approved and released under a program to help micro, small and medium enterprises (MSMEs) recover from the impact of COVID-19 have reached over P2 billion as of this month, the Department of Trade and Industry (DTI) said yesterday.

The DTI’s financing arm Small Business (SB) Corp. said it approved 21,358 loans amounting to P2.27 billion under the COVID-19 Assistance to Restart Enterprises (CARES) program as of Feb. 2.

A total of 19,601 loans worth more than P2 billion, meanwhile, have been released under the program as of same date.

Under the Bayanihan to Recover As One Act or Bayanihan 2 signed into law last year, the amount of P10 billion has been allocated to the SB Corp. to expand the CARES program.

Also part of this fund is the CARES for Tourism Rehabilitation and Vitalization of Enterprises and Livelihood (CARES for TRAVEL), which was allotted P6 billion.

The SB Corp. is implementing the CARES program to help businesses continue operations and keep their workers.

Under the program, the loan amount to be given would be based on the applicant’s asset size and annual sales.

Loans under the program have a service fee ranging from four to eight percent, depending on the number of years the applicant would pay.

The loan term can be up to four years, with a grace period of up to six months.

For those in the tourism industry, a longer grace period of up to 12 months can be granted by SB Corp.

Applications for the CARES program may be submitted at https://brs.sbgfc.org.ph.

Meanwhile, Sen. Grace Poe said urgent measures are needed to stop the unemployment bleeding that deprives millions of families of sustainable income and decent food on the table.

Poe said the country’s jobless record remains high and more workers are being terminated as businesses continue to struggle.

She said the recent layoffs by Philippine Airlines will not only impact on the 2,300 employees, but on their families and dependents. – Cecille Suerte Felipe