LandBank launches P50-B loan program for crisis-hit enterprises

State-run Land Bank of the Philippines has rolled out a P50-billion loan program for businesses hit by natural and man-made calamities such as the ongoing conflict between Russia and Ukraine.

The National Assistance Towards Initiating Opportunities to Entities amidst Social and Economic Reserves which Visible Entail Shockwaves to Businesses seeks to provide additional working capital for firms.

This could then be used to boost operations, expand trading facilities, and stockpile supplies and inventories to address the actual or impending impact posed by crises.

“LandBank aims to bolster the resiliency of key development industries by cushioning the negative impact of economic disruptions,” President and Chief Executive Cecilia Borromeo said in an emailed statement.

“Through the NATION SERVES Lending Program, we will also contribute to preventing price surges on basic commodities as we continue serving the nation,” she continued.

Landbank is mandated to promote countryside development while remaining financially viable. It implements the comprehensive agrarian reform program (CARP), provides assistance to small farmers and fisherfolk, and serves as an official depository of government funds.

Under the program, borrowers such as renewable energy developers, agri-businesses, and aviation hardware and machine manufacturers can loan up to 85% of the actual need.

This will be computed based on the applicable Bloomberg Valuation Reference (BVAL) rate at the time of availment, along with a spread of not more than 75% of the prescribed spread based on the borrower’s credit rating.

LandBank reported a net income of P13.2 billion in the first three months of the year, 141% higher than the P5.48-billion net income the same quarter last year.

The Department of Trade and Industry (DTI) in March also announced a target to release P600 million worth of livelihood support to small firms.

The DTI earlier said some 10% of MSMEs were forced to close down as of June 2021. This was up to as high as 52.66% in May 2020, during the peak of quarantines.

Micro enterprises are defined as those with total assets worth less than P50,000; cottage enterprises with assets worth P50,001 to P500,000; small with P500,001 to P5 million; and medium from over P5 million to P20 million. —LBG, GMA News