The Department of Trade and Industry (DTI) plans to seek more than P10 billion in additional funding to expand lending for micro, small and medium enterprises (MSMEs), in line with President Ferdinand Marcos Jr.’s renewed call to empower grassroots entrepreneurs.
“There’s really a push for MSMEs,” Trade Secretary Cristina Roque said during Tuesday’s Post-SONA discussions in San Juan City. “We’re making sure microenterprises are given priority. They can’t be left behind.”
Roque said the proposed budget increase will support sectors such as the creative economy, Halal-certified businesses, women-led initiatives and participation in trade fairs.
The DTI will formally request the additional allocation during upcoming budget hearings. While the department has yet to finalize the exact amount, Roque said planning is already underway.
The expanded lending will be channeled through the Small Business Corp. (SBCorp.), DTI’s financing arm for MSMEs.
SBCorp currently releases P8 billion to P10 billion in loans annually and is targeting a higher release of P11 billion in 2025.
“For MSMEs, access to capital is crucial,” Roque said. “Many have viable products but lack the resources to scale.”
Roque also noted significant reforms in SBCorp’s lending process to make financing more accessible:
• Loan amounts ranging from ₱10,000 to ₱10 million; • No collateral requirement for qualified MSMEs; • One-year grace period for principal and interest payments.
“These changes are designed to help MSMEs get started and stay afloat,” Roque said, adding that the reforms aim to close the capital gap that has long hindered small business growth.
