12 MSMEs avail P14.9-million financial assistance from DOST

TWELVE micro, small and medium enterprises (MSMEs) in Negros Occidental are qualified to avail financial assistance from the Department of Science and Technology (DOST) through the Innovation System Support Fund (ISSF), a component of its banner program Small Enterprises Technology Upgrading Program (SET UP).

DOST Negros Occidental Provincial Director Allan Francis Daraug said the ISSF allocation for the province this year is P14.9 million, higher than the P12.8 million in 2014 which covered 10 firms.

Of the 12 enterprises this year, two have already received their financial assistance – P1.9 million for the JNC Specialty Food ventures, and P865, 825 for New Wave Exporter Inc., which are medium and small scale enterprises, respectively.

The assistance for the seven MSMEs is expected to be released this month, Daraug said.

The other three firms have just qualified for application, but the allocation is already available, he added.

DOST Negros Occidental records showed that most of the recipient-enterprises are small scale enterprises, two of which are based in Murcia and Kabankalan City while the rest are located in Bacolod City.

Other recipient-enterprises for this year include Vivero Fishpond Farm, AJJJ Bakeshop, Warlen Industrial Sales Corporation, Aesha Frozen Foods, Kalibutan Society Inc., and JCS Magic Food Products.

“Through ISSF, the agency provides financial assistance to MSMEs that need facility upgrading, not for capitalization,” Daraug said, stressing that this aims to help them improve their production income generation by improving packaging and product quality.

Under the program, recipient-enterprise should have been existing for at least three years in the manufacturing industry authorized by the Department of Trade and Industry and with necessary permits from the local government unit.

The application process includes submission of audited financial statement and technology and project implementation sheet. Recipients will then be subjected to technology needs assessment.

Daraug said qualified enterprises should also submit a quarterly report or project information sheet to determine if it has generated jobs and improved product quality and sales.

In terms of payment, enterprises are given a one-year grace period before the start of payment within three years.

The agency will start collecting interest only after three years, Daraug said, adding that “we may pullout the equipment if enterprises fail to pay, and do the same, if enterprises have no improvement in their businesses.”

The DOST categorizes enterprises according to asset size – micro if the asset is P3 million and below; P3 million to P15 million for small; and P15 million and above for medium scale enterprises.

The financial assistance, however, does not depend on the scale, but on the need of the enterprise, Daraug noted. (EPN)

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