LEGAZPI CITY (PIA) — Micro, small, and medium enterprises (MSMEs) in Naga City and neighboring communities now have easier access to affordable financing and digital business solutions with the rollout of the Land Bank of the Philippines (LandBank) LIFTING MSMEs Program, an initiative designed to help local businesses grow, modernize their operations, and generate more employment opportunities.
The program was launched during the Talubo Bikolnon MSME Fair on July 24, introducing entrepreneurs to lower-interest loan packages, streamlined application processes, and artificial intelligence-powered digital tools made available through LandBank’s partnership with the Department of Information and Communications Technology – DICT.
The initiative aims to address one of the long-standing challenges confronting small businesses—limited access to affordable financing. Without viable lending options, many MSMEs are left with no choice but to borrow from private lenders that impose high interest rates, making it more difficult to expand their enterprises and sustain daily operations. Naga City Mayor Leni Robredo said the city government partnered with LandBank to provide local entrepreneurs with more accessible financing options and loan packages that are better suited to the needs and capacity of small businesses.
“Ang interest rate sa pag-uutang nila sa private, ang taas-taas talaga. Tapos, mga short-term loans pa na hindi sila kumikita. Parang ang kinikita nila, pinapambayad na lang ng utang,” Robredo said.
Under the program, the Start-Up Loan offers financing of up to P500,000 for start-ups and microenterprises that have been operating for less than a year. The Step-Up Loan provides up to P5 million to help MSMEs expand and strengthen their operations, while the Level-Up Loan offers financing of up to P50 million for businesses pursuing larger-scale growth and strategic investment projects.
LandBank First Vice President Eden Japitana said the initiative is designed to bring the bank’s financial services closer to entrepreneurs by making credit more accessible and affordable. He added that the program offers competitive interest rates ranging from 6.5 to 8.5 percent per annum, equivalent to less than one percent per month, making it easier for MSMEs to secure the capital they need to grow.
“Ang ultimate goal ay mapalago ang MSMEs natin kasi more than 99 percent ng mga maliliit na negosyante, they provide 60 percent of the employment nationwide. So kung marami tayong matutulungan, ‘yung economy natin mapapalago rin,” Japitana said.
Beyond financing, the program also strengthens the digital capabilities of MSMEs through LandBank’s collaboration with the DICT under the ASEAN MSME AI Tech Stack initiative.
The partnership introduces AI-powered tools that simplify loan documentation, speed up credit assessments, and help entrepreneurs create marketing materials for their businesses.
Robredo emphasized that embracing digital technology has become essential for local enterprises to remain competitive.
“Ang laki na ng online market, at kung hindi makasabay ‘yung local MSMEs natin, maiiwan talaga sila,” she said.
For Rechie Tanalas, owner of a pancit bato factory in Bato, Camarines Sur, access to affordable financing could help increase production while coping with rising flour prices.
“Ang impact nito sa amin, magiging magaan kahit papaano kasi hindi kami kukuha ng mas mataas ang interest. Mas magaan para sa amin,” Tanalas said.
Meanwhile, Hygie Ochoa, owner of Pixelfusion Academy Inc., said the program could support the expansion of the company’s animation and computer training services. He plans to apply for a P3-million loan to expand the business.
“Nag-join ako sa activity to learn more about kung ano ang mga process sa pag-apply ng loan, at the same time to know about the technology available ngayon sa LandBank,” he said.
Madeleine Lazaro, a business owner from Camaligan, Camarines Sur, also expressed optimism that the program would help her expand her sari-sari store and wholesale rice and egg business.
“Sa tingin ko, magandang ideya ang ibinibigay ng LandBank. Dagdag information din. Makakatulong talaga ‘yung discussion kung paano palaguin ang negosyo,” she said.
“Sa LandBank, salamat at nagkaroon ng ganitong activity. Ang laking tulong, lalo na sa mga katulad namin na may maliliit na negosyo.”
Around 300 local entrepreneurs participated in the Talubo Bikolnon MSME Fair held in Naga City. The event was attended by LandBank President and CEO Lynette Ortiz, Naga City Mayor Leni Robredo, DICT Undersecretary Atty. Faye Condez-De Sagon, and other government and private sector partners.
By combining affordable financing with digital capacity-building, the initiative aims to strengthen MSMEs, enabling them to expand their businesses, generate employment, and contribute to more inclusive economic growth in local communities.
Source: PIA Camarines Sur