The Department of Trade and Industry (DTI) said that the ongoing oil crisis in the Middle East has forced micro, small, and medium enterprises (MSMEs) to avail of financing support from the agency.
DTI Pampanga Acting Provincial Director Ma. Cristina B. Evangelista, said that one of the first support measures implemented at the onset of the Middle East oil crisis was the provision of financing assistance.
The DTI launched the MSME Business Fund, which is designed to provide financing to enterprises affected by the ongoing Middle East crisis through the Small Business Corporation (SBCorp), according to Evangelista.
SBCorp is a government financial institution established in January 1991 under Republic Act No. 6977, or the Magna Carta for Small Enterprises.
Evangelista said that supply chain disruptions, rising logistics costs, and cash flow challenges have prompted more enterprises in Pampanga to seek financial assistance.
She added that most beneficiaries are microentrepreneurs engaged in food processing, where energy-dependent operations have been significantly affected by supply disruptions.
“We have also made access to financing easier and more accessible, even online,” Evangelista said.
The official added that micro entrepreneurs can avail of financing of up to P20,000.
She said interested MSMEs may apply for the financing program online and submit the necessary documents virtually.
Loans of up to P5 million do not require collateral, according to the agency.
Evangelista said that borrowers may avail of grace periods on both principal and interest payments.
The DTI Pampang said that from January to May this year, some 57 MSMEs applied for the financing program, with a total loan amount of P43 million.
Of this amount, the DTI has approved and released P20 million.
