THE Department of Trade and Industry-Cebu Provincial Office (DTI-CPO) has given hope to micro enterprises that could not meet the eligibility requirements of the government’s SME Lending Opportunities for National Growth or Sulong program.
According to DTI-CPO program management division chief Elias Tecson, micro enterprises may seek the help of the office to avail themselves of the micro financing programs of Javlon Micro-financing Inc. and the Philippine Business for Social Progress (PBSP).
He said both Javlon and the PBSP lend capital to micro firms—enterprises that have assets amounting to P3 million or less. These include market vendors, halo-halo vendors and sub-contractors.
Javlon is a private company financing more on spiritual projects, but it also caters to the financing needs of micro businesses. PBSP, on the other hand, channels its micro financing program through conduit rural and thrift banks.
A source from the micro business sector revealed that the government’s Sulong program has not been able to accommodate micro enterprises because of its collateral requirements.
She said most applications of micro entrepreneurs have been turned down by the participating government financial institutions (GFIs).
Sulong is a unified lending program for small and medium enterprises (SMEs) designed to support the National SME Development Plan of the Arroyo administration.
One of its objectives is to create a wider, borderless financing system that will afford the SMEs greater access to short-term and long-term funds.
The program began in January last year.
69 benefited
According to the DTI-CPO, the participating GFIs in the Sulong program had released a total of P108.5 million to 69 beneficiaries in the province as of last month.
The Philippine Export-Import Credit Agency accounted for the biggest share, releasing P55.3 million to 23 beneficiaries.
Land Bank of the Philippines followed, releasing P23.2 million to 15 SMEs.
The Small Business Guarantee and Finance Corp. and Quedancor released P21.4 million to 19 SMEs and P8.2 million to 12 SMEs, respectively.
Most of the Cebu beneficiaries were in furniture making, food processing and home furnishing.
Sulong dispensed P16.65 billion in loans to SME-beneficiaries nationwide in 2003.
DTI Assistant Secretary Armin Raquel-Santos earlier said the program will not decline a loan only on the basis of inadequate collateral. However, the borrower must be willing to mortgage any available business and personal collateral, including assets to be acquired from the loan, to secure the borrowing. JBN
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