Gov’t to guarantee small businesses’ loans — DOF exec
To encourage banks to lend to micro, small and medium enterprises (MSMEs) to get their business back to its foot after the COVID-19 crisis, the government will guarantee loans given to MSMEs.
Finance Assistant Secretary Tony Lambino said banks are “risk-averse” or cautious to lend to MSMEs to lessen their exposure credit losses.
“Para labanan ‘yung risk aversion ng mga bangko ay magbibigay po [ang gobyerno] ng credit guarantee,” Lambino said in an interview on Dobol B sa News TV on Friday.
“Sa mga bangko po sila sila mismo uutang pero may garantiya ang gobyerno na kung di nila mabayaran ay meron pong sovereign guarantee sa mga utang na ‘yun,” he said.
The Finance official said the implementing rules and regulations detailing the specifics of the program will be released by the Philippine Guarantee Corp.
“Ang IRR po niyan specific rules ay ilalabas po pero approved na po siya ng board ng PhilGuarantee at ang mahalaga dapat nakabaling dito sa maliliit na negosyo,” Lambino said.
Apart from sovereign guarantee for small businesses’ loans, the government is also looking at extending the net operating loss carry-over period from three to five years.
This means that losses incurred this year by small businesses may be deducted from their income taxes for up to five years.
“Sa batas natin ngayon three years po pwedeng i-deduct na lugi sa isang taon, meaning in the next three years of tax payment. Ang gusto po natin gawing five years para ‘yung mga lugi this year dahil sa COVID-19 at ECQ ay ma-claim nila as tax deduction for five years until 2025,” Lambino said. — Ted Cordero/RSJ, GMA News