SB Corp. OKs financing for MSME creatives in Cebu

The Small Business Corporation of the Department of Trade and Industry has approved a P3-million seed fund for a financing program to benefit Cebu-based micro, small and medium enterprises (MSMEs) in the creative services sector. “This special program is the first institutional financing program for creative entrepreneurs in the country. It seeks to address the challenges on financing access of MSMEs in the creative industries and creative services sector,” Trade Undersecretary Merly Cruz said in a statement issued by the department on Wednesday. The program offers direct lending or transaction loans to MSMEs in music, visual arts, film, animation, graphic design, fashion design, industrial design, multimedia, writing and the performing arts. SB Corp., which provides financing aid to MSMEs through loans and other programs, reported on Jan. 29 that the value of MSME notes acquired by 89 banks rose to P1.18  billion. According to Section 15 of Republic Act 9501, banks must set aside at least eight percent for micro and small enterprises and at least two percent for medium enterprises of their total loan portfolio and make the amounts available through loans; subscription of preferred shares of SB Corp. stock; wholesale lending to participating financial institutions to lend to MSMEs; purchase/discount of MSMEs receivables; or purchase of liability instruments offered by the SB Corporation. — BM, GMA News