SB Corp opens P300-M loan window for MSMEs

MANILA, Philippines - Small Business (SB) Corp., the financing arm of the Department of  Trade and Industry (DTI), has approved more than P300 million worth of  loans under the Enterprise Rehabilitation Financing Program (ERFP)  launched for micro, small and medium enterprises (MSMEs) in areas  affected by super typhoon Yolanda last year.   

According to SB Corp., it has received 397 loan  applications totalling P638.3 million from the regions of western,  central and eastern Visayas and MIMAROPA (Occidental and Oriental  Mindoro, Marinduque, Romblon and Palawan) as of July 31.   

Of the total applications received, the SB Corp. has approved 245 loan  applications amounting to P301.3 million.    By the end of the year, the SB Corp. expects the ERFP to be a P700  million portfolio.   

The ERFP was launched in December last year to aid MSMEs located in  areas badly hit by Super Typhoon Yolanda.   

Under the program, MSMEs can borrow from P200,000 to P5 million, with an interest rate of five  to six percent per annum payable in five years, and a  year grace period on both principal and interest payments.   

The loans offer easy repayment terms which are tapered in the first few  years but raised in the remaining years, so as to align with the  recovery of the market.   

In addition, borrowers have minimal documentary requirements.   

Based on data from DTI’s regional offices, there were about 50,000  MSMEs that were affected by Super Typhoon Yolanda.   

While SB Corp. has been first among government financial institutions  to lend a hand to the enterprises, it is encouraging other banks to  provide assistance to affected MSMEs as well.   

“The SB Corp. calls for the banking sector and other MSME lenders to  join us in this endeavor, given that the scale of destruction  necessitates the assistance of all,” SB Corp. officer-in-charge Ma.  Luna Cacanando said.    

For the latest updates on ERFP, individuals  may visit the SB Corp. website at www.sbgfc.org.ph.