THE Small Business Corp. (SB Corp.), which expects to start disbursing loans to qualified businesses by the end of July, has received loan applications that are more than double the P1 billion initially budgeted for lending.
Trade Secretary Ramon M. Lopez said in the Laging Handa briefing Thursday that applications to SB Corp. from small businesses are currently worth more than P2 billion.
SB Corp’s COVID-19 Assistance to Restart Enterprises (CARES) program is a relief program targeted at businesses affected by the coronavirus disease 2019 (COVID-19) pandemic.
Mr. Lopez said that the Department of Trade and Industry (DTI) plans to use P3.5 billion from its P3 (Pondo sa Pagbabago at Pag-asenso) portfolio for extra funding pending approval of the government’s stimulus packages.
DTI also plans to borrow from state-owned banks.
“Ang isa pong source naman na ating pwede pong pagkuhanan ng SB Corp. ay ‘yung LANDBANK at DBP (Development Bank of the Philippines),“ he said. “Ito naman po ay arrangement na wino-work out namin (We are working out how to source funds from LANDBANK and DBP).”
In a message to reporters, Mr. Lopez said that 22,932 businesses have applied for loans.
Of these, P100 million in loans for 1,175 applicants represented approvals, while P97.7 million across 1,153 applicants were recommended for approval.
Under the CARES program, micro enterprises with assets not exceeding P3 million may borrow between P10,000 and P200,000 while small enterprises with assets of up to P15 million may borrow up to P500,000. The loans initially carried 0.5% interest, but SB Corp. now charges no interest but applies a six percent service fee. — Jenina P. Ibañez
