DTI’s SB Corp. to roll out P10-B loan program for MSMEs on Oct. 26, 2020

The Department of Trade and Industry's Small Business Corporation (SB Corp.) on Thursday announced it will roll out next week the P10-billion loan program for micro, small, and medium enterprises (MSMEs) affected by the COVID-19 pandemic using funds appropriated under Bayanihan to Recover as One Act.

In a statement, SB Corp. said the Bayanihan 2 law allotted a P10-billion fund to expand its COVID-19 Assistance to Restart Enterprises (CARES) Program.

Also to be made available under the fund is the CARES for Tourism Rehabilitation and Vitalization of Enterprises and Livelihood or CARES for TRAVEL Program, which is allotted P6 billion out of the total fund.

SB Corp. said it will start accepting applications for the Bayanihan CARES Program on October 26, 2020 to help MSMEs recover and ensure that workers keep their jobs.

“Based on the guidelines, MSMEs with BIR-filed financial statements for 2018 or 2019 with no major negative credit track record are assured of a loan under the program,” it said.

“MSME applicants who cannot submit a BIR-filed FS will just submit their barangay or municipal business permits,  photos or videos of business assets, and proof of sales for certain loan sizes,” it added.

Loan amount to be granted will be based on the MSME applicant’s asset size and annual sales, according to SB Corp.

However, additional limits to the loan size will be observed to ensure more MSMEs will benefit from the program, it added.

The loans under the program will have a one-time front-end service fee ranging from 4% to 8% depending on the number of years the applicant will pay. 

Loan term can be up to four years and grace period up to six months.

Certain industries such as tourism can be granted a longer grace period of up to 12 months, according to SB Corp.

The Bayanihan CARES applications may be submitted through the SB Corp.’s online loan application system at https://brs.sbgfc.org.ph starting Monday. — Ted Cordero/BM, GMA News