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Business

DTI to roll out new MSME lending program

Louella Desiderio - The Philippine Star

MANILA, Philippines — The financing arm of the Department of Trade and Industry is rolling out a new lending program to help sustain the gains and support the continued recovery of micro, small and medium enterprises (MSMEs).

Small Business (SB) Corp. spokesperson Robert Bastillo said during the Laging Handa public briefing yesterday the new lending program, called RISE UP or Resilient Innovative Sustainable Enterprises Unleash Your Power, with SB Corp. will be launched tomorrow.

“We are launching the program to replace or follow the Bayanihan CARES (Coronavirus Disease 2019 Assistance to Restart Enterprises) program,” he said.

While the Bayanihan CARES program was implemented to help businesses affected by the pandemic, he said RISE UP is intended to help MSMEs continue their recovery.

Under RISE UP, he said there would be three kinds of loans: a multi-purpose loan for different businesses; a loan for sari-sari stores, groceries, small dealers and distributors; and loan for tourism establishments.

Through the new program, he said SB Corp. aims to match the over P7 billion worth of loans it provided to over 42,000 businesses during the pandemic.

He said new borrowers can avail of loans amounting to P10,000 up to P5 million, without collateral.

For existing SB Corp. borrowers that are paying loans and of good standing, he said they can borrow up to a maximum of P10 million.

To qualify for loans under RISE UP, he said the business should be in operations for at least one year.

This, as he said over 20 percent of new businesses close within the first year they are set up.

“We have to make sure they have been established so that the government’s funds will be protected and not run out. Even our funds in SB Corp. could run out within five years if borrowers do not pay,” he said.

For those borrowing beyond P5 million, he said they would be required to have collateral.

The loans have an interest rate of 12 percent per annum and borrowers have four years to pay, inclusive of grace period.

Ahead of the program’s launch, Bastillo said MSMEs that intend to borrow up to a maximum of P300,000 can already start applying for loans as applications for a smaller loan amount would be processed first.

He said tourism establishments can also start to file applications.

To apply for the program, MSMEs should visit www.sbcorp.gov.ph.

MSME

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