MANILA, Philippines — The Department of Trade and Industry (DTI) has approved over P3.3 billion worth of loans under a facility to assist micro, small and medium enterprises (MSMEs) dealing with the impact of COVID-19 pandemic.
Trade Secretary Ramon Lopez said in a Viber message to reporters yesterday P3.38 billion worth of loans have been approved so far, covering 25,920 borrowers under the COVID-19 Assistance to Restart Enterprises (CARES) program being administered by its financing arm Small Business (SB) Corp.
He said a total of P2.78 billion worth of loans had been released to 23,141 borrowers.
Lopez said less than 10 percent of the loans are for tourism-related establishments.
“The loan take up has already improved, from about 200 applications a week at the start, to 1,000 a week. But we were expecting more applications than these numbers,” he said.
As the DTI continues to invite MSMEs to tap loans, SB Corp. has also increased its processing capacity to about 4,000 applications per week.
“We should continue with this micro lending program because there are still many takers, still in need of working capital loans to save their operations and jobs,” Lopez said.
Under the Bayanihan to Recover As One Act or Bayanihan 2 law, the amount of P10 billion has been allocated for the CARES program to make loans available to MSMEs without requiring collateral.
In an interview with One News yesterday, Lopez said there are some MSMEs that opt not to borrow for now as their businesses are either closed or have limited operations amid restrictions imposed by the government to stem the surge in new COVID-19 cases.
“If they borrow but they can’t operate, it is risky because they might not be able to pay,” he said.
He said among the sectors affected by the enhanced community quarantine (ECQ) imposed in Metro Manila, Bulacan, Cavite, Laguna and Rizal, are restaurants, retail and tourism establishments.
Lopez said the DTI is of the view the ECQ can not continue for a long time given its impact on the economy and jobs.
“What we’re looking at is a gradual movement towards reopening the sectors that are low risk,” he said.
Earlier this week, presidential spokesman Harry Roque said another extension of the ECQ in Metro Manila and nearby provinces might not be possible due to the lack of funds available to help those affected by the restrictions.
Based on the model recommended by the Department of Health, the extended ECQ may be followed by a modified ECQ (MECQ) after this week, depending on the results of prevention, detection, isolation, treatment and reintegration efforts.
Lopez said under the MECQ, sectors that will be allowed to reopen include those considered to be low risk.