SBGFC facilitates P2.5-billion loans to small, medium firms

The state-run Small Business Guarantee and Finance Corp. (SBGFC) facilitated some P2.514-billion loans to small and medium entrepreneurs (SMEs) last year exceeding its 1999 overall corporate target by 33.12 percent.

Jose S. Orosa, SBGFC chairman and president said this brings to roughly 6,000 the total number of SMEs assisted by SBGFC in securing some P7-billion loans directly from SBGFC or from its accredited financial institutions.

"We are glad to have given the small businessmen more access to loans considering that we have surpassed our 1998 performance by a high of 87 percent in terms of total loan uptake," Orosa stressed.

Under the rediscounting facility, SBGFC has rediscounted some P3.9-billion worth of SME loans to date. Total number of SME loans rediscounted has reached 2,917. Bulk of the rediscounted SME loans ranged from P2 million to P5 million, most of them going to local producers and single proprietors.

SEFF loans to agribusiness projects accessed through SBGFC's wholesale lending window have so far benefited five accredited financial institutions with an average loan size of P30 million.

Under the regular guarantee program, cumulatively, the manufacturing sector accounted for the bulk of the loans guaranteed at 47 percent of the total. By type of borrower on the other hand, single proprietors made up the largest sector assisted at 83 percent.

Under the microfinancing facility, nine NGOs have borrowed an average of P3.6 million each.

Under the TGFF and STDFF, 123 SMEs have availed themselves of loans ranging from P2-P5 million.