LOAN PROGRAMS for MSMEs affected by the COVID-19 pandemic – Philippines

The recent lockdown due to the community outbreak of COVID-19 has hit it really bad for small business owners, or the MSMEs (Micro, Small, and Medium Enterprises). MSME’s are the backbone of the Philippine economy. These comprises of 1.42M registered businesses.

Who are the MSMES?

  • Micro enterprises – Asset size of not more than 3 Million pesos
  • Small enterprises – Asset size of not more than 10 Million pesos
  • Medium enterprises – Asset size of not more than 100 Million pesos

LOAN PROGRAMS THAT YOU CAN AVAIL

1. P3-ERF (Pondo sa Pagbabago at Pag-asenso) 

DTI P3

The P3-ERF facility of the Department of Trade and Industry (DTI) is part of the economic relief program of the Duterte administration for small businesses. DTI’s financing arm, Small Business Corporation, will grant access to the loan fund to micro and small enterprises continuously operating for at least one year prior to March 2020 whose businesses suffered “drastic reduction in sales.”

Loan Purpose and Qualifications:

        1. Loan updating or Anti-Foreclosure Support
        2. Working Capital Replacement for Restarting the Business (for smaller scale)
        3. Inventory Replacement

      https://amzn.to/3ewnFTy

      Maximum Loanable Amount  :

              • Micro Enterprises:  P10,000.00 up to P200,000.00
              • Small Enterprises:  up to P500,000.00

      Good news for TNVS and other Transport Operators who are worried with their monthly amortization, they are included in the program and can apply for loan.

      For Small Transport Operators:
              • Proof of LTFRB franchise (for school bus operators) and/or Certificate of Public Convenience (for TNVS such as grab)
              • Copy of OR/CR of vehicle
              • In case of loan updating – Statement of Account or Billing Statement or any proof of unpaid amortization from the creditor

      For more information, please contact 8651-3333 or send an email at p3@sbgfc.org.ph

      2. RESPONSE (Rehabilitation Support Program on Severe Events)

      DBP

      Development Bank of the Philippines (DBP) offers RESPONSE which provides rehabilitation financing support to DBP and non-DBP borrowers, both public and private institutions adversely affected by calamities, such as the COVID-19 pandemic. – DBP

              • Longer Payment terms of  up to 15 years inclusive of a three-year grace period, as well as concessional rates.

      Eligible Borrowers

      Public and/or private institutions located and/or operating in areas declared in a state of calamity by competent authority.

      Eligible Projects

      Projects located in areas affected by calamities and or force majeure events as determined by the appropriate authorities (i.e. President of the Philippines, NDRRMC, concerned LGUs)

      Pre-Qualification Criteria

      1. Declaration of state of calamity or existence of a calamity of an area.
      2. Lending Center/Department Head certification that the project was adversely affected by calamity or event arising from the occurrence of such calamity
      3. For new borrowers:

                • At least 1 year in operation prior to the calamity
                • No adverse findings from banks and major suppliers

      Loan Amount

      Based on project requirement*

      Visit DBP RESPONSE   for more information.

      3. I-RESCUE (Interim Rehabilitation Support to Cushion Unfavorably-affected Enterprises by COVID 19)

      landbank

      Landbank in support of Republic Act No. 11469 or the “Bayanihan to Heal as One Act”, LANDBANK, through the I-RESCUE Lending Program, shall provide interim measures for Small and Medium Enterprises (SMEs), Cooperatives (Coops) and Microfinance Institutions (MFIs).

              • SMEs, MFIs, and cooperatives may borrow up to 85 percent of their actual need for working capital;
              • Interest rate of 5 percent per annum, payable up to a maximum of five years;
              • The program also offers restructuring of existing loans via additional loans, extended repayment period, or through other means (or combination of means);
              • The loan may be extended up to a maximum of 10 years, with up to three years grace period on the principal and up to one-year grace period on interest, depending on cash flow.

      Visit Landbank I-RESCUE or download this file I RESCUE LENDING PROGRAM BROCHURE for more information.

      These loan programs are part of the Bayanihan to Heal as One Act or Republic Act 11465, an act declaring the existence of a National Emergency arising from the Coronavirus Disease 2019 (COVID-19) Situation.

      In demand now!

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