Gov’t Financing Arm Approves P3.4-B MSME Zero-Interest Loan

PHP3.38 billion in loans to micro, small and medium enterprises (MSMEs) was approved by the Small Business (SB) Corp., the financing arm of the Department of Trade and Industry’s (DTI) under the COVID-19 Assistance to Restart Enterprises (CARES) program, according to DTI Secretary Ramon Lopez.

The trade chief said in a televised interview that the newly approved loan amount aims to provide financial assistance to 28,000 borrowers as COVID-19 cases in the country continue to surge.

He added that PHP2.78 billion worth of loans were already released to 23,141 borrowers, in a message to reporters, via the Philippine News Agency.

Among the borrowers are companies from the tourism sector, which has been hit hard by the pandemic since it started in 2020, and continues to ravage the industry to this day.

The tourism sector accounts for 10 percent of all borrowers.

Companies around the country are availing of the government’s financial assistance to companies, as Secretary Lopez said that SB Corp received 200 applications per week when the CARES program started.

The CARES program now caters to 1,000 loan applications per week, the trade chief said, which prompted SB Corp. to increase production capacity to around 4,000 applications per month.

Lopez added that the microlending program will continue as there is still a need to save companies and jobs around the country.

“We should continue with this microlending program because there are still many takers, still in need of working capital loans to save their operations and jobs,” he said. (GFB)