NEARLY P170 billion worth of stimulus assistance to businesses are being readied to help them cope with the effects of the new coronavirus disease 2019 (COVID-19) pandemic.
Of that, P31.7 billion is being rolled out by the Department of Trade and Industry (DTI) while the bulk of P134 billion will emanate from several legislation in Congress.
DTI Secretary Ramon Lopez in a webinar hosted by European business groups last week said the DTI
has launched four programs to help micro, small and medium enterprises (MSMEs) affected by the pandemic.
The programs are aimed at providing financial and non-financial assistance to preserve businesses and encourage the entry of new enterprises to create jobs.These are also meant to upskill and reskill MSMEs’ workers to the changing landscape of work.
The DTI had partnered with the Development Bank of the Philippines and the Land Bank of the Philippines for a P30-billion financing program for MSMEs.
Another P1 billion has been set aside for the
Pondo sa Pagbabago at Pag-asenso — Enterprise Rehabilitation Fund (P3-ERF) being undertaken by the Small Business (SB) Corp. through its COVID-19 Assistance to Restart Enterprises (CARES) Program.
For medium enterprises, Lopez said P500 million has been set aside for lending while P203 million is allotted for the Livelihood Seeding Program, the Negosyo sa Barangay.
Congress has several bills for strategic interventions to businesses, the biggest of which is an P80-billion bridging loan package for startups and MSMEs.
Through the fund, SB Corp. will increase the availability of loanable funds to these enterprises for their payroll, materials,supplies, mortgage payments, rent, utilities and the repurposing of their business.
Some P44 billion worth of grants is also being prepared to support the activities that will improve business resilience of enterprises through technical assistance, incentives for participation in trade fairs, research and development, innovation, investment support for repurposing, digital transformation, education, training and counselling.
Another P10 billion is being planned to assist MSMEs and startups through grants for education, trainings, and counselling to improve business resiliency in the post COVID era including prevention and containment of transmissions of communicable diseases among others.
Meanwhile, SB Corp. said it will start accepting today applications for the CARES program in its offices in areas that will transition from enhanced community quarantine to general community quarantine.
Borrowers may submit the accomplished application form together with other loan requirements to any of the offices of the SB Corp or through the Department of Trade and Industry’s (DTI) Negosyo Centers
The CARES Program is part of the administration’s economic relief program for micro and small enterprises affected by the COVID-19 pandemic.
Under the program, micro and small enterprises operating for at least a year prior to March 16, 2020 and assets not exceeding P15 million can avail of the program.
The loan shall be used to help the enterprise stabilize or recover from its losses.
Loans for 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.
The SB Corp.said the P1 billion loan program will help cushion the economic impact brought about by the pandemic.
Micro enterprises with asset size of not more than P3 million may borrow an amount ranging from P10,000 to P200,000 while small enterprises with asset size of not more than P15 million may borrow loan amount not exceeding P500,000.
Interest rate shall be at 0.5 percent per month (discounted basis); and grace period of six months on principal payments.
