THE Small Business Corp. (SB Corp.) announced it has extended the deadline for micro-scale and small firms to apply for interest-free loans to finance the 13th-month pay of their workers. SB Corp. said the decision was due to the low turnout of applicants of the program.
The Department of Labor and Employment (DOLE) made the announcement last Monday after only 447 employers have applied for SB Corp.’s loan facility.
The 13th-month pay is “a mandatory benefit provided to employees pursuant to Presidential Decree 851, which requires employers to grant 13th month pay to all its rank and file employees,” according to the DOLE.
Out of the said applicants, DOLE Spokesman Rolly Francia said only 125 have approved loans worth P27 million.
SB Corp. allocated P500 million for the lending window to help between 6,000 to 7,000 small-scale and micro-scale companies, which are struggling to pay the 13th month benefits of their workers.
Each applicant could borrow between P12,000 to over P50,000 payable in 12 months.
Francia said SB Corp. extended the deadline for loan applications for seven days from December 7 to December 14, 2021.
The deadline is meant to give enough time for SB Corp. to process the loans before December 24—the deadline for the payment of 13th month benefits.
Francia said in a briefing last Monday “this is your [business’s] chance to avail of the interests-free loan.”