DTI launches loan program for Carina-hit MSMEs

The Small Business Corporation (SBCorp), the financing arm of the Department of Trade and Industry (DTI), on Thursday announced the launch of a loan program to help in the recovery of micro, small, and medium enterprises (MSMEs) hit by Typhoon Carina last month.

In a statement, the SBCorp said its Enterprise Rehabilitation Financing (ERF) program was launched on Aug. 27, 2024.

The ERF, it said, serves as a special loan facility that provides crucial financing assistance to MSMEs devastated by Carina to enable their recovery and rebuilding efforts.

“We understand the challenges businesses face as they work to rebuild and resume normal operations after the devastating impact of this typhoon, which surpassed even the rainfall record of Super Typhoon Ondoy,” said SBCorp president and chief executive officer Robert Bastillo.

“This emergency fund, offering concessional terms not currently available in the market, aims to finance the immediate needs of MSMEs. These needs include the repair and replacement of damaged fixed assets and inventories, operational disruption, and revenue loss,” added Bastillo.

SBCorp said new and existing may borrow a maximum of P300,000, payable monthly for up to three years. 

A three-month grace period may also be secured, in case loan borrowers need a reprieve from payments, it said.

The loans under the ERF also carry zero interest for the first year, and “1% per month interest rate based on diminishing balance shall be levied for the second and third year.”

The SBCorp said MSMEs in the following areas are qualified to apply for the program: 

• National Capital Region
• Ilocos Norte
• La Union
• Bataan
• Pampanga
• Bulacan
• Tarlac (Camiling)
• Cavite
• Rizal
• Laguna (Mabitac)
• Oriental Mindoro (Pinamalayan and Baco)
• Romblon (San Andres)
• Zamboanga (Tambulig)
• Davao Occidental (Jose Abad Santos and Trinidad)
• Cotabato (Kabakan and Pikit)

“Our existing borrowers who are currently in their loan repayments and have yet to fully reach the P300,000 loan cap can quickly access this facility without needing to submit any documentary requirements,” said Bastillo.

Meanwhile, new borrowers only need to submit their Mayor's Permit or Barangay Micro Business Enterprise (BMBE) Certificate for loans over P100,000, or Barangay Certification for loans up to P100,000. 

In addition, all new borrowers must provide government-issued ID, proof of bank or e-money account, and corporate documents, if applicable, according to SBCorp.

The agency said it accepts applications through the loan portal on its website until the end of September.—LDF, GMA Integrated News