DTI asks DBP, Landbank for P30-B financing for loan program for COVID-19-hit small businesses

The Department of Trade and Industry (DTI) is requesting state-run lenders Development Bank of the Philippines (DBP) and Land Bank of the Philippines to secure P30 billion for its loan program to help micro, small, and medium enterprises (MSMEs) recover from strict quarantine measures imposed to contain the COVID-19 spread.

“We have asked DBP and Landbank to secure mga P30 billion,” Trade Secretary Ramon said during the Laging Handa public briefing on Wednesday.

The amount will be used for DTI’s lending activities for MSMEs’ working capital requirements.

However, the Trade department’s lending program will only start after the enhanced community quarantine (ECQ) is lifted, Lopez said.

“Eto kasi ay may kasamang pag-inspect ng kanilang negosyo. Ibig sabihin nag-ooperate na po,” he said.

“Hindi naman magawa due to ECQ, so ito po ay mag-uumpisa sa pag-lift ng ECQ,” he added.

The DTI has an enterprise rehabilitation financing program for small businesses greatly affected and further marginalized by the COVID-19 pandemic.

Under its program, 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.

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.

“Naka-abang na po ang ating operations pagdating sa pagpapahiram at low-interest rate,” Lopez said. —KG, GMA News