Business sector seeks government aid for MSMEs

CEBU, Philippines —  Cebu’s business sector is seeking for wage subsidy, loan support, special discount from utilities, as losses are already crippling traders to continue paying salaries and other expenses.

Mandaue Chamber of Commerce and Industry (MCCI) president Steven Yu admitted that most businesses in Cebu have incurred heavy losses already, “but everyone is holding on with hopes that we will be avoiding a second and third wave.”

“We have made several position papers to the national and local government units and agencies to ask for support to MSMEs in their resumption of business/business recovery plan,” he said.

“We asked for wage subsidy, loan support (grace periods, waivers and start-up loans), rental subsidy/support, discounts on utilities, etc.,” he added.

Already, the business sector had made their official appeal to concerned agencies in the government, and hopes that the government will not overlook the difficult plight of the micro, small and medium businesses.

On the other hand, Yu also wished that the pronouncements made by several government agencies in implementing business stimulus and other programs that will aid the business sector will be properly implemented and well distributed.

“We are relieved that many programs will be upcoming. Until we have an antibody and a vaccine, recovery will be slow,” he noted.

Early this month, April, the Department of Trade and Industry’s (DTI) announced that it will release a P1 billion budget to help small businesses recover from COVID-19 related losses.

Through its financing arm, Small Business Corporation, MSMEs can avail of loan facility via 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.

Micro enterprises with asset size of not more than P3 million may borrow P10,000 up to P200,000; and small enterprises with asset size of not more than P10 million may borrow a higher loan amount but will not exceed P500,000.