P100-B loanable funds available to small firms

Government has been urged to mount a comprehensive campaign to inform the country’s small and medium scale enterprises (SMEs) that they can avail themselves of close to P100 billion in easy-to-pay, low-interest credit to help them open new businesses or expand their existing ventures.

In keeping with its job-generation thrusts, the government should launch a massive information campaign that would enable SMEs to obtain more facts on how they can tap these loans through various credit facilities, according to former Press Secretary and Presidential Spokesman Ricardo "Dong" Puno Jr.

"What use would these millions of funds be if our SMEs, which constitute over 80 percent of businesses in Metro Manila alone, remain unaware of them?" Puno, a Laban senatorial candidate, said.

Puno said the government has the duty and responsibility to inform SMEs about these available funds and where and how they can secure them as part of its ongoing efforts to generate more jobs and create more livelihood opportunities, especially in the countryside.

According to the Department of Trade and Industry, credit facilities for SMEs include about P5 billion from the National Development Fund, P5 billion each from the Social Security System and the Government Service and Insurance System, P2 billion each from the Small Business Guarantee Finance Corp., and the Guarantee Fund for SMEs, financing from the Development Bank of the Philippines, the Land Bank, and the mandated allocation from the banks’ loan portfolio for agricultural and agrarian reform programs as mandated by the Agri-Agra Law.

Promoting the development of SMEs, according to Puno, will help ease the unemployment squeeze as it would help budding entrepreneurs set up their own businesses and encourage cooperatives in the countryside to avail themselves of loans to help them set up business ventures in partnership with big companies.

"The government must come up with innovative measures to help create jobs and alternative means of livelihood for the masa if it is to make a significant change in reducing the incidence of poverty among Filipinos," noted Puno, whose eight-point program Puno ng Pag-asa para sa Masa focuses on job creation and preservation.

He said that besides mounting an information campaign, the government should also ease credit requirements for SMEs to make sure that they can avail themselves of these loan facilities.

Making funds available for SMEs, Puno said would help the country’s small and medium scale businesses compete globally and hire more workers.

He said the government should also continue to open more credit windows for SMEs and strengthen partnerships between small businesses and big corporations.

The government should also provide more training and technical and marketing assistance to enterprises engaged in rural industries, Puno added.