LandBank releases P5.28-B in COVID-related loans for MSMEs

State-run lender Land Bank of the Philippines released P5.28 billion in approved loans under its Interim Rehabilitation Support to Cushion Unfavorably affected Enterprises by COVID-19 (I-RESCUE), nine months into the program.

LandBank said the amount was released to 208 borrowers: 167 micro, small, and medium enterprises (MSMEs), 34 cooperatives, and four microfinance institutions (MFIs), and three large corporations as of end-January 2021.

This was part of the P6.95-billion worth of loans approved for 227 borrowers, which in turn was part of the P10-billion initial internal fund of I-RESCUE launched in April 2020 as mandated by the Bayanihan to Recover as One Act.

I-RESCUE allows micro enterprises and large corporations to borrow a maximum of 85% of their emergency or permanent working capital requirements. The interest rate is set at 5% per annum for three years, subject to annual re-pricing and payable up to 10 years with a maximum of two years grace period.

Micro enterprises are defined as those with total assets worth less than P50,000; cottage enterprises with assets worth P50,001 to P500,000; small with P500,001 to P5 million; and medium from over P5 million to P20 million.

"We are enhancing the I-RESCUE Lending Program to cover a wide range of key industries that need greater access to credit. LandBank is keeping in step with the emerging requirements under the new normal in support of the country's ongoing economic recovery," president and chief executive officer Cecilia Borromeo said.

The lending program is available until end-2022, and clients may avail of loan restructuring via additional loan and extended repayment period or combination of means to rehabilitate and restore operational cash flow.

LandBank is mandated to promote countryside development while remaining financially viable. It implements the comprehensive agrarian reform program (CARP), provides assistance to small farmers and fisherfolk, and serves as an official depository of government funds. — DVM, GMA News