Micro and small enterprises affected by the coronavirus disease 2019 (Covid-19) and quarantine measures implemented in the country can avail of interest-free loans to help them resume their businesses amid the pandemic.
During the general membership meeting of the Philippine Exporters Confederation Inc., Small Business Corp. (SB Corp.) President and Chief Executive Officer Luna Cacanando said they have crafted a loan facility from the P1.5-billion Covid-19 Assistance to Restart Enterprises (CARES) program specifically for micro and small firm-members of Philexport.
Cacanando said qualified borrowers are those 100-percent Filipino owned in operation prior to March 15, and with asset size of not more than P15 million. The community quarantine was raised over Metro Manila since March 15, and the mainland Luzon since March 17.
Cacanando said CARES loan size ranging from P100,000 to P500,000, is bracketed based on the company’s minimum number of employees registered with the Social Security System (SSS), asset size, and minimum sales in 2019.
She said the term of the loan payment can be up to 30 months inclusive of grace period. “The 18 months, or 30 months, is inclusive of a six months grace period, meaning the enterprise will not pay anything for six months. In the seventh month, amortization of the principal portion starts because there is zero interest,” Cacanando said.
“We have tried to ensure that the loan facility will be something that will truly help the micro and small enterprises recover so it should not create financial burden on the enterprise,” she added.
Cacanando said documentary requirements for online loan application under CARES portal are proof of SSS-registered employees, Bureau of Internal Revenue license, and consummated purchase orders in 2019. These also include Philexport certification of industry association-endorsed loan applicant enterprises having submitted its SSS, BIR, and purchase orders (PO) documents.
Either Philexport, member industry associations or chapters may certify that the member enterprise qualifies under the guidelines.
“Once we receive the endorsement by Philexport, we commit to release the loan in seven working days,” she said. Meanwhile, Cacanando and Philexport President Sergio Ortiz-Luis Jr. signed a memorandum of understanding (MOU) on the CARES program.
Under the MOU, the Philexport will promote to its member micro and small enterprises the CARES program and will review the completeness of their loan application and supporting documents submitted. SB Corp., on the other hand, provides actual lending and conducts regular monitoring of loan payments made by these borrowers.
“We expect that you would be able to endorse enterprises that have a good track record with the association itself,” Cacanando told Philexport. .