State-run lender offers new loan products for MSMEs

CEBU, Philippines - SB Corporation, one of the financial institutions run by the government, is announcing its new loan products designed to further help micro-small and medium entrepreneurs (MSMEs) cope with the new business environment.

SB Corporation chief executive officer Ma. Luna E. Cacanando in her recent visit to Cebu encouraged entrepreneurs to check with the SB Corp regional office here of the different credit or loan packages that will suit their particular needs in business.

Cacanando introduced the new loan packages such as financial support for trade fair participation, Food and Drug Administration. Or FDA licensing, local innovation (with commercial potential) pocket-farm loans, intellectual property rights (IPR) application, among other credit window facilities for smaller players.

SB Corporation, which is an attached agency of the Department of Trade and Industry (DTI), offers loanable amount of this particular package from P100 thousand to P500 thousand, but it could go up to P2 million, depends on the viability of the business.

Cacanando said that the agency is trying to slacken its requirements to cut off intimidation from the MSMEs in availing of financial assistance from the government.

Aside from this new offer, SB Corporation had been trying to reach out to MSMEs, with its existing partnership with the business organizations in Cebu, to make the P4 billion direct loan facility by easily accessible to Cebuanos, through a memorandum of agreement (MOA) signed with Cebu Chamber of Commerce and Industry and the PhilExport-Cebu.

Under the agreement, CCCI and PhilExport encouraged to endorse possible MSME borrowers, with a target of endorsing at least 100 accounts (borrowers) within Cebu during the first year of the agreement,

The government's definition of MSMEs, are those companies which capitalization are not over P100 million.

Because the access to financing among the MSMEs is one of the long overdue battle cry of the sector, Cacanando said SB Corp will focus on providing direct loan access, aside from its other businesses us as wholesale lending and guarantees, among others.

She said this move from the government side will challenge the banking institutions to implement more relaxed requirements for financial access especially to micro, small and medium entrepreneurs who do not have enough capabilities to meet the strict requirements of the banks.

SB Corp. envisions becoming the leader in small enterprise development financing and small credit delivery systems nationwide. It has focused on developing an appropriate mix of financing products that are responsive to the needs of the country's small and medium enterprises (SMEs).

Over the years, SB Corp. has evolved its product line from generic credit and credit enhancement facilities — catering to both nearly bankable SMEs and small banks in need of liquidity support — to more evolved lines that focused the financing facilities to specific products/sectors. (FREEMAN)