New MSME loan program available

Multi-sectoral micro, small and medium enterprises (MSMEs) can avail of collateral-free loan assistance from the government, including a loan program that aims to sustain gains of firms that have survived the pandemic.

“…(We have a) desire to continue helping our MSMEs especially now that they are transitioning from the hard-core pandemic stage to stage to recovery and growth. We are still there to assist and help via our financing products,” Small Business Corporation Vice President Robert Bastillo said in a webinar.

Bastillo particularly cited the Resilient, Innovative and Sustainable Enterprises, Unleash your Powers (RISE UP) program which has three categories of loans –the multi-purpose loan for small enterprises, the “tindahan” loans for retail establishments that carry fast moving goods from sari-sari stores to distributors, and the “turismo” loans for tourism enterprises.

He said the SBCorp offers various financing programs for the MSME sector, with no collateral required for loans up to PHP5 million. The minimum loanable amount is PHP10,000.

“We do not ask for collateral because how can we help the small enterprises if we ask for collateral,” he said in Filipino.

However, existing SBCorp borrowers in good credit standing are allowed to borrow up to PHP10 million which already requires collateral.

Bastillo said the agency’s lending programs carry a 1-percent interest rate per month based on declining balance.

“The declining balance is based on the outstanding balance, what is left on the principal. So while you are paying the principal, the balance is declining and it is where the 12 percent per annum, 1 percent per month, will be applied. The 1 percent per month (interest rate) will be applied on the outstanding balance,” he added.

Bastillo said SBCorp completes the evaluation of loan requests, processing, and loan release within 10 days.

“We will release (loans) through either bank transfer, electronic transfer, online transfer, Bayad Center, Palawan. But they have to sign online the loan documents, promissory notes,” he said.

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