SB Corp. opens PHP 1B loan facility for MSMEs affected by COVID-19 lockdown
The Small Business Corporation, an agency under the Department of Trade and Industry (DTI), is setting up a PHP 1 billion loan facility to support micro and small businesses affected by the COVID-19 pandemic, and cushion its economic impact in the country.
The PHP 1 billion Enterprise Rehabilitation Financing facility will be set under the Pondo sa Pagbabago at Pag-asenso (named COVID19 P3-ERF).
The ERF loan fund is open to micro and small enterprises with at least a year of continuous operation prior to March 2020, and whose businesses suffered a drastic reduction in sales during the ensuing epidemic.
Micro enterprises with asset size of not more than PHP 3 million may borrow PHP 10,000 up to PHP 200,000 and small enterprises with asset size of not more than PHP 10 million may borrow a higher loan amount but will not exceed PHP 500,000.
The loan shall be used to help the enterprise stabilize or recover from its losses. Specifically, the following purposes are qualified: 1) Updating of loan amortizations for vehicle loans or other fixed asset loans of the business, 2) Inventory replacement for perishable stocks damaged, and 3) Working capital replacement to restart the business.
The interest rate shall be at 0.5% per month (discounted basis), and the grace period on payments shall be given until such time that the economic crisis has abated.
SB Corp. will soon release the requirements and guidelines.