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SB Corp. starts accepting loan applications of micro, small enterprises in GCQ areas

Micro and small businesses hit by the economic effects of the enhanced community quarantine (ECQ) may now apply for the government's P1-billion loan program, the Department of Trade and Industry (DTI) announced Monday.

In a statement, the DTI said its attached agency Small Business Corp. is now accepting applications in areas under general community quarantine (GCQ) for the COVID-19 Assistance to Restart Enterprises (CARES) program.

Under the program, the government has allottfed P1 billion which may be loaned by micro and small enterprises operating for at least a year prior to March 16, 2020.

Micro enterprises with asset size of not more than P3 million are allowed to borrow from P10,000 to P200,000, while small enterprises with asset size of nore more than P15 million may borrow up to P500,000.

"The loans shall be used to help the enterprise stabilize or recover from its losses," the DTI said in an emailed statement.

According to the DTI, qualified purposes for the loans include the following -- updating of loan amortizations for vehicle loans or other fixed asset loans; inventory replacement for perishable stocks damaged; and working capital replacement to restart the business.

The loans will come with an interest rate of 0.5% per month and a grace period of six months on principal payments.

Loan applicants may visit the SB Corp. website for the application form, which they may then submit to the nearest SB Corporation office or Negosyo Center areas.

"SB Corporation will practice strict workplace safety protocols. Walk-in clients are required to wear face masks and practice social distancing," it said.—AOL, GMA News