DA releases P600 million loan assistance to farmers

MANILA, Philippines — The Department of Agriculture (DA) has continued to provide loan assistance to farmers and fishers affected by the pandemic, releasing nearly P600  million to date.

The DA-Agricultural Credit Policy Council (ACPC) said it has   transferred P593 million to its 51 lending conduits in 35 provinces to agri and fishery-based micro and small enterprises and marginalized small farmers and fishers nationwide.

Under its Expanded SURE Aid and Recovery Project, P310 million in loans were given to 45 MSEs from 28 provinces including Metro Manila as of last week.

The MSEs  can borrow up to a maximum of P10 million with zero-interest payable in five years.

The MSEs, which may be a single proprietorship, partnership, corporation or cooperative and association, may use the loans as working capital to ensure the availability of food supply and help them recover their losses incurred from the effects of the quarantine.

The MSEs also expressed willingness to deliver and supply products to DA’s Kadiwa centers, particularly in high consumption markets such as Metro Manila and other demand centers.

Under the same program, 8,781 farmers and fishers from 18 provinces benefited from the P220 million loan fund released through 28 partner lending conduits.

Each beneficiary received a non-collateralized loan of P25,000 with zero interest payable in 10 years. The assistance aims to finance the emergency and production capital requirements of the farmers and fishers whose incomes were affected by the lockdown during the crisis.

The ACPC continues to identify and negotiate with local and provincial-based financial institutions as potential lending conduits for the program.

Amid the challenges on transportation, movement of goods and services, and social distancing policies, ACPC is modifying its procedures to adapt to the new normal to fast track loan releases in coordination with its lending conduits, regional field offices and local government units.

The Expanded SURE program, which has a P2.5 billion fund, targets to provide financial support to 150 MSEs and 40,000 small farmers and fishers in the country.

It forms part of the DA’s overall initiative to increase the country’s food adequacy level during the emergency situation.