DTI’s SB Corp sets up P1B loan facility for COVID-19-hit MSMEs

Small Business Corp., the financing arm of the Department of Trade and Industry (DTI), is setting up a P1-billion loan facility to help micro, small, and medium enterprises (MSMEs) cope with the impact of Luzon-wide enhanced community quarantine to contain the spread of the coronavirus disease 2019 (COVID-19)

The loan facility dubbed as Corporation is setting up a P1-billion Enterprise Rehabilitation Financing facility under the Pondo sa Pagbabago at Pag-asenso (COVID19 P3-ERF) that will be implemented once the Luzon lockdown is lifted by the national government and/or respective local government units.

For his part, Trade Secretary Ramon Lopez said the P3-ERF facility is part of the economic relief program of President Rodrigo Duterte for small businesses greatly affected and further marginalized by the COVID-19 spread.

SB Corp. said the ERF loan fund is open to micro and small enterprises with “at least one year continuous operation prior to March 2020, and whose businesses suffered drastic reduction in sales during the ensuing epidemic.”

Micro enterprises with an asset size of not more than P3 million may borrow P10,000 up to P200,000 and small enterprises with an asset size of not more than P10 million may borrow a higher loan amount but will not exceed P500,000.

The loan shall be used to help the enterprise stabilize or recover from its losses, SB Corp. said.

Specifically, the following purposes are qualified: updating of loan amortizations for vehicle loans or other fixed asset loans of the business; inventory replacement for perishable stocks damaged; and working capital replacement to restart the business

Interest rate is set at 0.5% per month (discounted basis); and grace period on payments shall be given until such time that the economic crisis has abated. -MDM, GMA News