SBCorp urges MSMEs to get loan online
Small businesses looking to restart operations during the pandemic can still apply for interest-free, collateral-free government loans by creating an account at www.BayanihanCARES.ph.
With just a few keystrokes and clicks, small business owners can enter their relevant information and upload scanned identity and business documents to the website, which is operated by the Small Business Corporation (SBCorp), an agency attached to the ministry. Trade and Industry (DTI).
SBCorp is the implementer of the Bayanihan CARES (Covid-19 Assistance to Restart Enterprises) program, which makes 8.08 billion pesos available for micro, small and medium-sized enterprises (MSMEs), cooperatives, hospitals, tourism businesses and returnees or displaced persons abroad. Filipino workers affected by the Covid-19 pandemic.
Under the scheme, qualified loan seekers can apply for loans ranging from P10,000 to P5 million, depending on their pre-pandemic sales and business assets figures, if any.
These loans are repayable for up to a maximum of four years, including a maximum grace period of 12 months for non-tourism MSMEs, or a maximum grace period of 24 months for tourism MSMEs accredited by the Department of Tourism (DOT). ) or registered as Barangay Micro-enterprises. Successful loan applicants will only have to pay a one-time service fee, set at a maximum of eight percent for a loan term of four years. Lower service charges apply to shorter loan terms.
To date, SBCorp has approved 31,700 MSME loan applications. These correspond to a total loan amount of 4.84 billion pesos.
“SBCorp operates on the principle that we should not duplicate what the major MSME finance players are already doing,” said Chief Executive Officer Ma. dit Luna Cacanando. “We are not in competition with what is already working on the market. What we need to do is close the gaps for small businesses that banks and finance companies don’t yet find attractive to finance relative to their profit targets and cost management thresholds. We develop and manage our funding programs for MSMEs with this in mind. (PR)