Metro Manila (CNN Philippines, May 28) – An attached agency of the Department of Trade and Industry is offering interest-free and no-collateral loans to help micro, small, and medium enterprises, and repatriated overseas Filipino workers affected by the COVID-19 pandemic.
The Small Business Corporation (SB Corp.) was mandated under Republic Act 11494 or the Bayanihan to Recover as One Act to provide these loans through the Bayanihan COVID-19 Assistance to Restart Enterprises (CARES) Program.
SB Corp. spokesperson Azel Solano said those who will apply under the Bayanihan CARES Program have a grace period of one year to pay for their loans.
“Binibigyan natin sila ng ganoong palugit para makapag-focus sila sa pag-recover ng kanilang negosyo,” Solano told CNN Philippines’ Newsroom Ngayon on Friday.
[Translation: We are giving them a long grace period so they can focus first on the recovery of their business.]
MSME owners can borrow money amounting from ₱30,000 to ₱5-million.
Solano said businesses operating at least one year from the date of their loan application are eligible for the loans under the Bayanihan CARES Program. But she added that vice-generating businesses, like those in gambling, are not entitled to apply for a loan.
The SB Corp. spokesperson emphasized that those who want to apply for a loan must either have a barangay permit, mayor’s permit, or financial statements submitted to the Bureau of Internal Revenue.
Solano assured the public the agency is prudently assessing loan applications by making sure the applicants and the businesses are legitimate.
Meanwhile, SB Corp. is also offering its Helping the Economy Recover thru OFW Enterprise Start-Ups (HEROES) Program to aid returning and repatriated overseas Filipino workers in starting their own business amid the COVID-19 pandemic.
Loans offered in the HEROES Program are also interest and collateral-free, where OFWs can loan from ₱30,000 to ₱100,000.
“May iba’t iba po tayong tinitingnan. Kasama po doon ‘yung feasibility ng kanilang pinaplanong negosyo, kung meron na silang suppliers na naiisip, saan nila gustong itayo ang kanilang negosyo, at kung meron na silang ie-employ para sa pagpapatakbo ng kanilang negosyo,” Solano said on how will they assess each HEROES loan applicant.
[Translation: We are looking at different factors. These include feasibility of their planned business, if they have suppliers in mind, the location of their business, and who will they employ to run their business.]
The SB Corp. said over 99% of the country’s businesses are classified as MSMEs. Solano added around 12% of the total MSMEs in the country are still closed due to the coronavirus crisis.
