GOVERNMENT LOANS from the Small Business Corp. (SB Corp.) will be extended to truckers affected by the pandemic through a partnership with an industry group.
SB Corp. on Tuesday signed a memorandum of agreement with the Alliance of Concerned Truck Owners and Organizations (ACTOO) extending the COVID-19 Assistance to Restart Enterprises (CARES) loan program to truckers.
ACTOO members through the program may apply for interest and collateral-free loans between P200,000 and P5 million.
“The transport and logistics sectors have been both adversely affected by the pandemic, but at the same time are in a position to recalibrate and be a significant contributor to the economic recovery,” SB Corp. Executive Vice-President Santiago S. Lim said at a launch event Tuesday.
SB Corp. has nearly used up P4 billion in general or non-tourism small business loan funding from the Bayanihan II stimulus package, more formally known as the Bayanihan to Recover as One Act.
Part of the funding dedicated to tourism businesses, as approved by the Tourism secretary, can be used for loans for truckers while uptake from the tourism sector remains slow.
Truckers availing of loans may be able to access the remaining P300,000 from the general CARES fund along with P1.5 billion out of P4 billion in tourism funds.
The funding total for tourism loans was originally P6 billion, which is part of the total SB Corp. loan allocation of P10 billion from Bayanihan II.
“It’s no longer P6 billion, because what has been downloaded to us was only P8 billion,” Mr. Lim said.
“Prior to the pandemic, the capitalization of SB Corp. was already at the P10 billion level. But over the past 29 years, out of the P10 billion capitalization, only P2 billion was funded. So there was a balance of P8 billion,” Mr. Lim added.
“That’s the argument that DBM (Department of Budget and Management) is using: that since your capitalization is only P10 billion, we cannot give you the full P10 billion because you are already fully subscribed or oversubscribed if we give you the P10 billion.”
Mr. Lim said SB Corp. is looking to fully avail of the allocated P10 billion for small business loans in Bayanihan II, and the organization is seeking legal advice on the matter.
“Hopefully, the Bayanihan II law will be extended tomorrow, so that we still have room for negotiation or for discussion with DBM.”
The Department of Trade and Industry earlier this month said that is it seeking additional funding for small business loans. — Jenina P. Ibañez
