THE Small Business Corp. (SB Corp.) told legislators that it will finish releasing its P1.5-billion loan program to micro, small and medium enterprises (MSMEs) by August.
“Ang pine-prepare po kasi namin, everyday 500 accounts ang aming maa-approve at mare-release ‘yan the following day. ‘Yun pong P1.5 billion namin para dun sa COVID-19 assistance to restart enterprises (CARES), we should be able to complete the approvals within July and by August ubos na po ’yun (We approve 500 accounts per day and release the following day. The P1.5 billion for the CARES program will have all loans approved by July for release by August),” SB Corp. President and Chief Executive Officer Ma. Luna E. Cacanando told the House committee on MSME development in a virtual hearing Wednesday.
As of June 8, SB Corp. has processed a total of 7,333 loan applications under the CARES program. Of these, 287 were approved while P1.22 million covering 12 applications was released.
The loan is open to micro and small businesses which have been in at least a year of continuous operation by March 2020, and those that “suffered drastic reduction” in business during the pandemic.
Loans can be applied to keeping loan amortizations for vehicles and other fixed assets up to date, inventory replacement for damaged perishable stock, and working capital to restart the business.
Micro enterprises with assets of up to P3 million may borrow between P10,000 to P200,000, while small enterprises with assets not bigger than P10 million may borrow up to P500,000.
With an average loan release of P85,000 per day, Ms. Cacanando estimates that SB Corp. will accommodate 17,000 to 20,000 borrowers.
Deputy Speaker and Ilocos Sur Rep. Deogracias Victor B. Savellano urged SB. Corp to lower its 6% service charge.
“Zero interest but you have a service charge of 6% which I think, hindi na uso ‘yung 6% interest ngayon eh. Kasi ‘yung service charge niyo ano lang ‘yan eh, mapupunta lang sa inyo. (No one charge 6% interest these days, and the funds will do no good if held by the government) You are working with the government, bakit pa tayo may service charge? Dapat babaan pa (Why is there even a service charge? It should be reduced),” he said.
Development Bank of the Philippines (DBP) President Emmanuel G. Herbosa said the bank is developing a “terms of engagement” with SB Corp. to help lend its funds to those MSMEs which have the “potential to become larger.”
“SB Corp. is going to be a partner of DBP to help them process those MSMEs that have potential to become larger. We have to understand that SB Corp. has excellent credit expertise kaya lang po minsan talagang nasasapawan sila (but sometimes they get overwhelmed). So, what we’re doing right now is developing terms of engagement with SB Corp. to help them out,” he said.
Mr. Herbosa said that the DBP can provide loans that exceed SB Corp.’s P5 million limit.
“Ang sinasabi natin sa SB Corp…P5 million ang maximum limit nila. So kung meron pa silang on top of the maximum limit, pwede namin dagdagan for certain borrowers they have (DBP can top up loans beyond SB Corp’s limit). If there’s some good local manufacturing, self fabrication, anything that helps enhance our supply chain, replace imports or foreign suppliers, I’m encouraging Luna to pass the loan to us that’s beyond P5 million,” he said. — Genshen L. Espedido
