DTI-SBCorp allots P8 billion for MSME loans in 2025

The Department of Trade and Industry’s (DTI's) financing arm, Small Business Corporation (SBCorp.), is allocating over P8 billion in 2025 to support micro, small, and medium enterprises (MSMEs) through new and existing loan programs.

At a press conference in Makati City on Friday, Trade Secretary Ma. Cristina Roque announced the launch of three new loan programs available to MSMEs: Business Expansion Financing, Purchase Order Financing, and Franchise Funding.

According to Roque, SBCorp has set aside the following amounts for these initiatives: P1 billion each for Business Expansion Financing and Franchise Funding; and P500 million for Purchase Order Financing.

In addition to these new programs, SBCorp also allocated P2 billion for the Enterprise Rehabilitation Financing program and P3 billion for the RISE UP Multi-Purpose Loan program.

Roque also announced that three more programs would be launched in February:
Receivables Financing: P200 million,
Creative Industry Fund: P500 million, and 
Halal Financing: P500 million.

“These financing programs will be crucial tools in supporting MSMEs’ growth and job creation,” Roque said, emphasizing that MSMEs account for over 99% of registered businesses and 66% of the country’s labor force.

Program details

Business Expansion Financing
This program targets MSMEs planning to expand or diversify into new products or services.

• Loan amounts range from P50,000 to P3 million, with repayment terms of up to three years and a one-year grace period.
• Interest Rates: 0% for the first 12 months, followed by 1% per month on a diminishing balance.

Purchase Order Financing
Eligible MSMEs must have operated for at least one year and successfully completed at least three purchase orders.

• Loan Features: Borrow up to 80% of the value of purchase orders, with amounts ranging from P30,000 to P20 million.
• Interest Rates: 1% monthly.
• Repayment Terms: 30 to 360 days.
• Additional Features: Increasing credit lines up to P20 million and multiple drawdowns against the credit limit.

Franchise Funding
This program is tailored for returning overseas Filipino workers (OFWs) and their families, as well as new and existing franchisees.

• Loan Amount: Up to 80% of the total franchise investment, capped at P20 million.
• Interest Rates: 0% for the first year, followed by 1% per month on a diminishing balance.
• Repayment Terms: Up to three years, with a one-year grace period.

Continuing programs

Enterprise Rehabilitation Financing
Launched in late 2024 to assist MSMEs affected by natural disasters like tropical storms and the Mt. Kanlaoan eruption, this program will continue in 2025 with P2 billion in funding.

• Loan Amounts: P10,000 to P300,000.
• Interest Rates: 0% for the first year, 1% per month for the second and third years.
• Grace Period: Three months.

RISE UP Multi-Purpose Loan
This program, with a P3 billion allocation, is designed to sustain MSME operations and growth.

Loan Amount: Up to P300,000.
Interest Rates: 12% per annum.
Repayment Terms: Monthly payments for up to three years.

SBCorp President and CEO Robert Bastillo encouraged MSMEs to take advantage of the financing programs, highlighting their accessibility and flexible terms.

“These programs are designed to empower businesses and help them scale, recover, and thrive in a competitive environment,” Bastillo said. — DVM, GMA Integrated News