New MSME Loan Scheme Available

MULTI-SECTOR micro, small and medium-sized enterprises (MSMEs) can benefit from unsecured loan assistance from the government, including a loan program that aims to support the earnings of businesses that have survived the pandemic.

“[We have a] desire to continue to help our MSMEs, especially now that they are moving from the stage of endemic pandemic to the stage of recovery and growth. We are always here to help and assist you through our financing products,” said the vice president of Small Business Corp. (SBCorp), Robert Bastillo, during a webinar.

Bastillo specifically cited the Resilient, Innovative and Sustainable Businesses, Unleash Your Powers (RISE UP) program, which has three categories of loans – the multi-purpose loan for small businesses, “tindahan” loans for retail establishments that transport fast-moving goods from sari-shops to distributors, and “turismo” loans to tourism businesses.

He said SBCorp offers various financing schemes for the MSME sector, with no collateral required for loans up to 5 million pesos. The minimum loanable amount is 10,000 pesos.

“We don’t ask for collateral because how can we help small businesses if we ask for collateral,” he said in Filipino.

However, existing SBCorp borrowers in a good credit position are allowed to borrow up to 10 million pesos, which already requires collateral.

Bastillo said the agency’s loan programs carry an interest rate of 1% per month based on a declining balance.

“The declining balance is based on the outstanding balance, what remains on the principal. So while you are paying the principal, the balance is declining and this is where the 12% per annum, 1% per month, will be applied .1 percent per month [interest rate] will be applied to the outstanding balance,” he added.

Bastillo said SBCorp completes loan application evaluation, processing and loan release within 10 days.

“We will publish [loans] by bank transfer, electronic transfer, online transfer, Bayad Center, Palawan. But they have to sign loan documents, promissory notes online,” he said.

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