DTI Opens P4-B CARES Fund Loan for MSME workers’ 13th Month Pay

Micro, Small and Medium Enterprises (MSMEs) may borrow from a PHP4 billion Covid-19 Assistance to Restart Enterprises (CARES) fund for their workers’ 13th month pay, according to Trade Secretary Ramon Lopez.

The Trade Secretary told reporters through a text message on Tuesday the PHP4 billion for the CARES program is funded by the Bayanihan 2 Act, according to the Philippine News Agency.

The government was able to allot PHP10 billion for MSME through the Department of Trade and Industry (DTI)’s financing arm, Small Business (SB) Corp., of which PHP4 billion may be able to be tapped by MSMEs as loan to pay the 13th month benefit of their employees, Labor Secretary Silvestre Bello said. The remaining PHP6 billion is allotted for MSMEs in the tourism industry.

The DTI chief also added that the procedure for acquiring the loan will be the same as other MSMEs borrowing for working capital and operations.

Under the CARES program, existing MSMEs with at least one year of operation can avail the zero-interest loan.

With the Bayanihan 2, CARES program offers loans from PHP10,000 to PHP200,000 depending on the asset size of the enterprises, with existing MSMEs having at least one year of operation may avail of the loan with zero interest.

MSMEs with a minimum asset size of PHP50,000 to PHP1 million can apply for loan.

This comes after the Department of Labor and Employment (DOLE) ruled out the possibility of deferment and exemption of employers to give their respective employees their 13th month pay.

Presidential Decree 851 mandates all employers to give 13th month pay on or before Dec. 24. (GFB)