GOOD news for micro and small businesses.
Small Business (SB) Corp., an attached agency of the Department of Trade and Industry, is soon rolling out a P1 billion loan facility for micro and small enterprises affected by the Covid-19 economic crisis.
The Enterprise Rehabilitation Financing facility under the Pondo sa Pagbabago at Pag-asenso (P3-ERF) will be implemented once the community quarantine measures by national and local governments are lifted.
Trade Secretary Ramon Lopez said the P3-ERF is part of the economic relief program of President Rodrigo Duterte for small businesses greatly affected by the Covid-19 virus pandemic.
According to SB Corp., the ERF loan fund is open to micro and small enterprises with at least one year of continuous operation prior to March 2020, and whose businesses suffered drastic reduction in sales during the ensuing epidemic.
Micro enterprises with asset size of not more than P3 million may borrow P10,000 up to P200,000 and small enterprises with asset size of not more than P10 million may borrow a higher loan amount but may not exceed P500,000.
The loan shall be used to help the enterprise stabilize or recover from its losses.
Specifically, the following purposes are qualified: updating of loan amortizations for vehicle loans or other fixed asset loans of the business; inventory replacement for perishable stocks damaged; and working capital replacement to restart the business.
Interest rate shall be at 0.5 percent per month (discounted basis); and grace period on payments shall be given until such time that the economic crisis has abated. SB Corp. will be releasing the requirements and guidelines soon. (CSL with PR)