THE Department of Trade and Industry (DTI) has advised small business owners in typhoon-affected areas to turn to the Small Business Corp. (SBCorp) and tap the DTI’s financing arm to recover from the onslaught of Severe Tropical Storm “Paeng” (international name Nalgae).
This was what DTI-Consumer Protection Group Assistant Secretary Ann Claire C. Cabochan said in a televised interview last Thursday citing that SBCorp has loan programs and micro-store loan facilities.
Those who are in the retail business and affected by “Paeng” can also apply with SBCorp, Cabochan said in Tagalog.
Apart from seeking assistance from the financing arm of the Trade department, Cabochan said small business owners may also consult with the Negosyo centers in the different localities.
The DTI official said these owners can also contact the agency’s “Negosyo” (business) centers in different localities, for what they need, for instance, capacity-building. “[Pwede rin sila makipag-ugnayan sa ating mga negosyo center dun sa different localities, para sa kanilang kailangan,for instance, capacity-building para sila’y makabangon muli dun sa kalamidad.]”
According to Section 4 of Republic Act 10644, among the functions of the negosyo centers is to build local support networks and establish market linkages for MSME
development.
Another function, the said law states, is to “facilitate access to grants and other forms of financial assistance, shared service facilities and equipment and other support for MSMEs.”
Lending windows
LAST May, SBCorp launched a loan program for micro-scale, small-scale and medium-sized enterprises (MSMEs). Called “RiseUP Tindahan,” the program is open to MSMEs in the retail food market. These MSMEs, however, must operate in the supply chain of an SBCorp-accredited fast moving consumer goods (FMCG) operator.
A lending window was also opened for sari-sari stores with FMCG accreditation. This window offers a maximum loanable amount of P300,000. Another program, called “SME Tindahan” is for retail stores, dealers and distributors with FMCG accreditation and has a maximum loanable amount of P5 million.
According to SBCorp., loan applicants must have a business that is 100-percent Filipino-owned (for sole proprietorship or partnership). The MSME must have an asset size of not more than P100 million (exclusive of value of land). It must also have been participating in the supply chain together with an SBCorp-accredited FMCG company for at least a year. To borrow more than P1 million, the enterprise must be participating in the supply chain for at least three years.
SBCorp accepts loan applicants that have no past due account/s under any of the lending programs of the DTI’s financing arm.