DTI rolls out P3 microfinancing program

CEBU, Philippines - The Duterte government's microfinancing program, the Pondo sa Pagbabago at Pag-asenso (P3) has been rolled out in Central Visayas.

Yesterday, the Department of Trade and Industry held a briefing on the P3 with potential conduits particularly micro financing institutions, which are set to be accredited by SB Corp., the government's micro financing arm.

SB Corp. is currently in the process out of accrediting local conduits which will help assist in distributing funds to micro entrepreneurs.

In yesterday's briefing, at least eight potential conduits attended.

Francisco Buenavides, SB Corp. Visayas group head, said Cebuana Lhuillier and Radiowealth Finance Corp. are two of national conduits already accredited by the state-run finance firm.

In particular, Radiowealth has a wide presence in Cebu specifically in the cities of Mandaue, Carcar, Bogo, Lapu-Lapu, Toledo, Cebu and municipality of Minglanilla.

Cebu is also well covered by Cebuana Lhuillier.

A representative from Radiowealth said yesterday the firm can already start lending to micro entrepreneurs in Cebu under the P3 once it receives a go signal from its head office.

Buenavides said the supposed target of the program is to allocate P1 billion for each region up to 2022.

But initially, the government allocated a P1-billion budget for P3 intended for all regions across the country.

He said the continuation of the microfinancing program in the next years will depend on the success of its implementation.

DTI Regional Head Asteria Caberte said they hope to have more local conduits in the implementation of the P3, which is designed to be cheap and easy credit.

This financing program encourages micro entrepreneurs to borrow money that will help them finance their businesses.

DTI Undersecretary for Regional Operations Zenaida Maglaya said: “P3 is intended to help the underprivileged Filipino entrepreneurs who want to grow their businesses. With this program, they can access cheap and easy credit without any hassle. After filling out a half-page application and presenting necessary documents, the money can be released within the day."

The P3 funding program provides micro enterprises an alternative source of financing that is easy to access and made available at a cheapest cost.

“After we’ve launched the P3 in Tacloban, Occidental Mindoro, and Sarangani in January 2017, P3 is now going nationwide. We hope this will encourage micro entrepreneurs to patronize the government’s program so we can eliminate loan sharks,” Maglaya said.

Meanwhile, in the Visayas at least seven micro finance institutions have already been accredited.

A total of P104.9 million have been released to P3 conduits nationwide as of yesterday.

P3 is a P1-billion financing program intended to give MSMEs better access to finance, and to reduce their cost of borrowing. The fund will also give priority to the country’s 30 poorest provinces.

Following President Rodrigo Duterte’s directive to replace the “5-6” money lending system, the P3 is also seen to help stabilize supply and cost of commodities in public markets, encourage small entrepreneurs to grow their businesses, eliminate loan sharks, and offer employment and generate income for Filipinos.

The P1 billion fund will be coursed through the SB Corp. with accredited partner institutions such as non-bank micro finance firms, cooperatives, and associations to serve as P3 conduits.

With borrowers identified through these, collection of repayments will be efficient.

The P3 Program was launched in Tacloban in Leyte on January 25, San Jose, Occidental Mindoro on January 27, and Alabel, Sarangani last January 30. A total of P7.7 million have been released to individual borrowers in these pilot areas: P3.5 million in Mindoro, P2.2million in Sarangani, and P1.8 million in Leyte.

The primary beneficiaries of the P3 Program are microenterprises and entrepreneurs that do not have easy access to credit. These include market vendors, agri-businessmen and members of cooperatives, and industry associations.

P3 will also make it easy for borrowers since it will only require minimal documentation requirement; easy to access with only one (1) day processing of application; low cost interest at 2.5 percent per month; and easy payment with collection on a weekly or daily basis, as necessary.

Loan amounts to end-borrowers range between P5,000 and P100,000, with no collateral requirement. (FREEMAN)