Marcos OKs P4-B emergency loan program for MSMEs

Executive Secretary Ralph Recto on Friday urged micro, small, and medium enterprises (MSMEs) to avail of P4 billion worth of emergency loans offered by the government amid the Middle East crisis.

Recto said the loan program is part of the comprehensive aid package approved by President Ferdinand "Bongbong" Marcos Jr. to help Filipinos affected by the current global oil shock.

Recto said the Department of Trade and Industry (DTI), through its Small Business Corp. (SB Corp), has opened this program for distressed MSMEs.

"As part of the safety nets not only for the highly vulnerable sectors but for the middle class and small entrepreneurs as well, President Marcos has cleared a program for MSMEs in distress as a result of the global oil shock to avail of easy loans ranging from P30,000 to P20 million each for them to manage rising logistics costs, cash flow constraints and supply chain disruptions," Recto said in a press release. 

"The President has envisioned this loan program as a lifeline to MSMEs against the backdrop of limited access to financing, more so at this time of economic challenges sweeping the globe,” he added. 

These DTI financing packages, through the SB Corp., have a grace period of one year, which means beneficiary-enterprises do not have to pay either interest or principal on the first year of their loans.

Applicants can apply for loans online, and for those with the complete required documents, the processing time at the SB Corp. is expected to be finished in 7 to 10 days.

Recto said this new government loan program is a welcome development for MSMEs in light of the Middle East crisis. — VDV, GMA News