Friday, April 21, 2006
Finance body increases loan portfolio for local SMEs
THE Small Business Guarantee and Finance Corp. (SBGFC) is urging all small and medium enterprises (SMEs) in Mindanao to avail of its financing windows.
For this year, the SBGFC, an attached-agency of the Department of Trade and Industry (DTI), is targeting to lend a total of P580 million to qualified domestic enterprises in the island.
As of last year, the SBGFC was able to provide an aggregate financial assistance of P527.6 million to Mindanao SMEs. This is higher by nine percent compared to their projected goal of P480 million.
SBGFC-Mindanao head Alexander Bataller said that with the help of their partner financial institutions, including commercial, thrift, and rural banks, more SMEs would enjoy the benefits of the agency's pecuniary programs.
Based on the 2005 Accomplishment Report of SBGFC, there was a slight slug of 1.3 percent in the amount of financing origination released by the agency throughout the country, from P3.294 billion in 2004 to P3.251 billion last year.
However, Bataller said it could be noted that despite this national scenario, Mindanao remained bullish.
"If you would examine closely the data, you will see that Mindanao has even surpassed its target for 2005. That alone is a good indicator that more and more SMEs are keen towards developing their economic status.
Aside from that, it is also a bright sign that a lot of our SMEs here are qualified to avail of our loan programs," he said.
Meanwhile, DTI regional director Merly M. Cruz said that with the loan facilities of SBGFC, the SMEs have additional options for them to further their income and market reach.
Among the minimum borrower qualifications set by SBGFC are: the enterprise must be Filipino-owned, in case of corporation, it must be at least 60 percent Filipino-owned; business asset size must be between P500,000 and P100 million; at least one year in operation; and project to be financed not into farm-level, agri-aqua production, extractive activities, and vice-generating operations.
For more details about the financial windows of SBGFC, interested parties could visit them at 2nd Floor Mintrade Building, Monteverde corner Sales Streets, Davao City. They can be contacted at telephone number (082) 221-1488.
For Bisaya stories from Davao. Click here. (April 21, 2006 issue)
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