THE Small Business Corp. (SBCorp) announced it would be closing its lending facility aimed at helping struggling micro, small and medium enterprises (MSMEs) as funding has been fully utilized.
In a recent advisory, the financing arm of the Department of Trade and Industry (DTI) said it will stop accepting loan applications for its “Covid-19 Assistance to Restart Enterprises,” or “Cares” program by January 31.
The lender said it was able to provide P6.8 billion loans to 40,000 MSMEs in two years.
Meanwhile, SBCorp. will still process applications for other lending programs catering to tourism-related establishments, displaced overseas Filipino workers (OFWs) and retail stores, mini-groceries and small dealers in the consumer goods supply chain, according to the DTI-attached agency.
These include the following: “Cares for Tourism Rehabilitation and Vitalization of Enterprises and Livelihood,” or “Cares for Travel,” program; the “Helping the Economy Recover thru OFW Enterprise Start-ups,” or “Heroes,” program; and, the “Sustaining Trade Access to Primary Food and Link to Enterprises,” or Staples, program.
SBCorp said the “Cares for Travel” program, in particular, still has substantial funds available for lending due to the slow recovery of the travel sector.”
“As we continue to lend under this program we are pleased to announce that its coverage is now expanded to include all tourism-related enterprises regardless of accreditation with the DOT [Department of Tourism],” it added.
Also, the DTI attached agency said applications are also open for secondary tourism enterprises and support services including transportation, catering, events organizing and souvenir shops.
The “Staples” program, launched in November 2021, offers interest- and collateral-free financing program for MSMEs in the fast-moving consumer goods (FMCG) segment to obtain additional funding for working capital and other business purposes. The loans, however, are subject to a 3-percent service fee.
The financing assistance also aims to sustain the food supply chains, in addition to keeping the affordability of the products.
To be an accredited partner for the “Staples” program, .SBCorp noted that the FMCG-manufacturer should have an asset size of more than P100 million and a nationwide network of at least 20 distributors and at least 100,000 sari-sari stories digitized into its sales-force automation system. The FMCG firm, in addition, should also be part of the top 1,000 corporations in the country.
Last year, the SBCorp. also opened a lending facility assisting MSMEs in paying the legislated 13th-month salaries of employees.