SBCorp urges MSMEs to get loan online
SMALL businesses looking to restart operations during the pandemic can still apply for interest-free, unsecured government loans by creating an account at www.BayanihanCARES.ph.
With a few keystrokes and mouse clicks, small business owners can enter their relevant information and upload scanned identity and business documents to the website, which is operated by the Small Business Corporation (SBCorp), an agency under the ministry. of Commerce and Industry (DTI).
SBCorp is responsible for the implementation of the Bayanihan CARES (Covid-19 Assistance to Restart Enterprises) program, which makes 8.08 billion pesos available to micro, small and medium enterprises (MSMEs), cooperatives, hospitals, enterprises tourists and returnees or displaced abroad Filipino workers affected by the Covid-19 pandemic.
Under the program, qualified loan seekers can apply for loans ranging from P 10,000 to P 5 million, depending on their sales figures and business assets before the pandemic, if any.
These loans are repayable up to a maximum of four years, including a maximum grace period of 12 months for non-tourism MSMEs, or a maximum grace period of 24 months for tourism MSMEs accredited by the Ministry of Tourism (DOT ) or registered as Les micro-entreprises du Barangay. Successful loan applicants will only have to pay a one-time service fee, set at a maximum of eight percent for a four-year loan term. Lower service charges apply for shorter loan terms.
To date, SBCorp has approved 31,700 loan applications for MSME. These correspond to a total loan amount of P4.84 billion.
“SBCorp works on the premise that we should not duplicate what the major players in MSME finance are already doing,” said Chairman and CEO Ma. Said Luna Cacanando. “We are not competing with what is already working in the market. What we need to do is close the gaps for small businesses that banks and credit companies do not yet find attractive to finance relative to their profit targets and cost management thresholds. We are developing and operating our funding programs for MSMEs in this direction. ” (RP)
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