Government offers financial lifeline for SMEs

CEBU, Philippines — The Department of Trade and Industry in Central Visayas (DTI-7) urged Small and Medium Entrepreneurs (SMEs) in the region to take advantage of the credit facility amid the Coronavirus-induced financial crunch.

DTI assistant secretary Aster Caberte called SMEs in Central Visayas to get in touch with any of the DTI-7 and provincial offices within region and signify their interest and to get an endorsement to the SB Corporation.

In a statement, Caberte who is a former DTI-7 regional director said microenterprises with an asset size of not more than P3-million can borrow P10,000 to P200,000 while small enterprises with an asset size of not more than P10 million can borrow a higher loan amount but not exceeding P500,000.

Early April, DTI announced the availability of P1 billion budget to help small businesses recover from COVID-19 related losses.

Through its financing arm, Small Business Corporation, micro, small and medium enterprises (MSMEs) can avail of loan facility under the Enterprise Rehabilitation Financing facility under the Pondo sa Pagbabago at Pag-asenso (named Covid19 P3-ERF).

Micro and small enterprises with at least one year continuous operation prior to March 2020 and whose businesses suffered drastic reduction in sales during the ensuing epidemic can tap the ERF loan fund, DTI announced.

Interest rate shall be at 0.5 percent per month, and grace period on payments shall be given until such time that the economic crisis has abated.

Loan applications will be accepted after the enhanced community quarantine is lifted by the national government and/or respective local government units.

Apart from the SB Corp. financing facility, state-owned Development Bank of the Philippines (DBP) is also providing financing to businesses and local government units (LGUs) which may be affected by the quarantine.