THE Department of Trade and Industry (DTI), through its financial conduit Small Business Corp. (SB Corp.), is urged to bring the financial assistance to the recipient-enterprises as quickly as possible.
Frank Carbon, chief executive officer of Metro Bacolod Chamber of Commerce and Industry (MBCCI), said micro and small businesses now have about 15 to 30 days cash reserve.
Carbon said businesses were able to cope in April but difficulties started to show in May, still due to the pressing global pandemic.
"Starting June, they will not be able to handle effectively their operations and some may close shop," he said, adding that "the longer they remain closed the harder for them to rebuild."
The DTI has opened a P1-billion enterprise rehabilitation financing (ERF) for micro and small enterprises affected by the crisis brought by coronavirus disease (Covid-19).
Through the SB Corp., the DTI's attached agency in-charged in financing for micro, small and medium enterprises (MSMEs), the ERF facility will be implemented under the department's Pondo sa Pagbabago at Pagasenso (P3) program.
In Negros Occidental, the DTI has initially received applications from 119 micro and small enterprises in the province as of first week of the month.
These applications received through email and actual submission at their office in Bacolod City were already forwarded to the SB Corp.
DTI-Negros Occidental officer-in-charge provincial director Rachel Nufable earlier said they started accepting applications on April 30, and qualified enterprises will be identified after the lifting of enhanced community quarantine.
"There's no cut off for the submission of applications but the SB Corp. will have to process and evaluate these before the enterprises can avail of the financing program," she said, adding that "this will help local enterprises to bounce back amid this pandemic."
The ERF program is intended for 100 percent Filipino-owned micro or small enterprises legitimately operating for at least one year prior to March 16, 2020.
These enterprises should be affected by the imposition of the ECQ throughout Luzon including similar community quarantine declarations in the Visayas and Mindanao.
Also, they must have an asset size of not more than P15 million, exclusive of the land on which the particular business entity's office, plant and equipment is situated.
Micro enterprises can avail of P10,000 to P200,000 in loan with payment terms of up to 12 and 24 months.
Documentary requirements under this category included fully-accomplished application form and signature card, one government identification card with picture, barangay business certification or permit, proof of permanent business address, DTI or Securities and Exchange Commission (SEC) business registration, mayor's business permit and post-dated checks.
For small enterprises, they can avail of P200,000 to P500,000 in loan with terms of up to 24 months.
In terms of requirements, the same documents like that for micro enterprises are required plus audited or in-house 2019 financial statements and Bureau of Internal Revenue (BIR) Certificate of Registration.
Though its a loan program, the agency said the interest rate is lower at six percent per annum.
However, the approval of applications from Western, Central and Eastern Visayas will be done in Cebu City as the Visayas Area Office of the SB Corp. is there.
So, the business group has suggested to the DTI and SB Corp. to send more manpower to its respective provincial offices.
Carbon pointed out that the processing of loan applications should be done by province. The approval, he said, of applications from Western Visayas including Negros Occidental should be done at DTI-Western Visayas Office.
"The idea is to bring the cash aid as quickly and as wide as possible," Carbon added.