THE Small Business Corp. (SB Corp.) announced it has approved P5.634-billion worth of borrowings for local micro-scale, small and medium enterprises (MSMEs) adversely affected by lockdown measures the Duterte administration used as response to the Covid-19 pandemic.
In a briefing last Monday, SB Corp. Board Director Voltaire Magpayo said these approved borrowings benefited 56,421 applicants. The figures are as of September 27.
According to Magpayo, the loans extended were under the government financial institution’s microfinancing program.
He said the lending window caters to MSMEs across the country who need financial assistance amid the pandemic. Magpayo added that the program allows businesses to borrow funding without interest and collateral; they are also provided grace period.
The program originally drew P1 billion in funds from the 2021 General Appropriations Act and P4 billion through Republic Act 11494.
But as the loan facility is getting maxed out, Trade Secretary Ramon M. Lopez previously said they have secured additional funding to continue lending to MSMEs. As such, Lopez encouraged the small businesses to still apply for loans to plug budget leaks and keep operations running.
Meanwhile, Magpayo said that SB Corp. and parent agency the Department of Trade and Industry (DTI) are still ironing out some details of the shipping-loan facility for exporters.
Previously, Lopez told the BusinessMirror that SB Corp. will soon start accepting applications for the shipping loans, which is payable up to 90 days from shipment date.
The trade chief said the Export Development Council requested for the financing program, eyeing borrowers from exporters who are ready to ship their products.
The SB Corp. official said the lending window will allow exporters in financing the demurrage fees—charged by the port authority to a shipping line when the loaded containers are not transported within the given laytime—and other costs.
In June, SB Corp. and the Alliance of Concerned Truck Owners and Organizations (ACTOO) inked a memorandum of agreement, extending a loan program to qualified truck owners as aid to the logistics sector’s recovery.
Over 2,000 ACTOO members may apply for loans which are not subject to interest and collateral. Those who can submit financial statements may secure loans amounting to P600,000 to P5 million, while those without may apply for borrowings between P10,000 to P200,000.
Last month, Deputy Speaker for Trade and Industry Rep. Weslie Gatchalian filed a resolution to hike the budget of the DTI by P1.6 billion to further assist MSMEs amid the closures due to mobility restrictions. The Trade department and its attached agencies have been allocated P23.7 billion for next year’s budget.
Image courtesy of Jill Toyoshiba/The Kansas City Star via AP