The Department of Trade and Industry (DTI) reported on Thursday that the lending facility for the micro, small and medium enterprises (MSMEs) is approaching full utilization, calling for fund replenishment to continue offering financial assistance.
In a news statement, the trade department said that it has processed and approved P4.5 billion worth of loans covering 30,408 applications as of June 9.
These borrowings were offered via Small Business Corp.’s P5-billion Covid-19 Assistance to Restart Enterprises (CARES) microfinancing program. The CARES program draws P1 billion in funds from the 2021 General Appropriations Act and P4 billion from Bayanihan 2.
“In view of this, there is a need to replenish this fund if we are to lend out to more MSMEs affected by the pandemic,” Trade Secretary Ramon M. Lopez said.
Lopez is expecting that the remaining funding under the MSME microfinancing window will be maximized by the end of June. The DTI chief said replenishing the allocation would help the economy recover amid the pandemic.
The trade chief, despite the credit facility nearing full utilization, encouraged the MSMEs to still apply for the much-needed financial assistance amid the pandemic.
“With this microfinancing program providing collateral-free and interest-free loans to businesses affected by the pandemic, our MSMEs can begin to rebuild their respective businesses and take part in the recovery that has started around the world,” he said.
The DTI, with the Department of Tourism, is also promoting the P6-billion CARES for Tourism Rehabilitation and Vitalization of Enterprises and Livelihood (CARES for TRAVEL).
Both government agencies are expecting more loan applicants for the CARES for TRAVEL program as more tourism economic activities are beginning to restart operations amid easing of lockdown restrictions.
Lopez added the DTI is seeing an increase in consumer and business confidence with the arrival of additional vaccine doses and that vaccination rollout for the 35 million A4 priority group or economic frontliners.
“The country’s vaccination program will prove to be a timely shot in the arm as well for the economy, as it will lead to continuous reopening with less threat of a surge, thus creating a good momentum for sustained recovery, more investments and greater employment opportunities for the Filipinos,” Lopez said.
During the ceremonial vaccination for economic frontliners on Monday, Lopez said that the Covid-19 Inter-Agency Task Force for the Management of Infectious Diseases and the private sector were mulling over new policies allowing further mobility on the part of the vaccinated population as the economy paves its path toward recovery.
The senior citizens who received two Covid-19 doses should be allowed to go out after a month, he said, noting they can do so by presenting a vaccine card.