The Small Business Corp. (SBCorp), the financing arm of the Department of Trade and Industry, will launch next month a new financing program that will give micro, small and medium enterprises (MSMEs) in retail food businesses access to much- needed funds through the help of accredited large fast-moving consumer goods (FMCG) companies, specifically those involved in food manufacturing, supply or distribution.
Called STAPLES or Sustaining Trade Access to Primary Food and Link to Enterprises, MSMEs that are linked to the accredited FMCG company can replenish their working capital and fund other business needs.
MSMEs in the food supply chain will then be able to retain or rehire their employees, and serve their communities when they are able to continue operating their businesses.
SB Corp. said the loan product aims to keep food suppliers afloat, and maintain food sufficiency and affordability in the country.
To be an accredited partner, FMCG food manufacturers must be large enterprises; have a nationwide network of at least 20 distributors and at least 100,000 sari-sari stores digitized into their salesforce automation system; and have at least P5 billion annual sales.
The accredited partner will sign a memorandum of agreement with SBCorp to include the marketing of the program to their channels of distribution and the sharing of information relative to the MSMEs in their supply chain.
Ma. Luna Cacanando, president and chief executive officer of SBCorp., said the program will free MSMEs from the burden of scurrying for affordable, easy to access loans for the sustenance of their livelihood. SBCorp is the program implementer of the Bayanihan CARES (COVID-19 Assistance to Restart Enterprises), which makes PP8.08 billion available for MSMEs, tourism businesses, cooperatives, hospitals, and repatriated or displaced overseas Filipino workers affected by COVID-19 pandemic. To date, SBCorp has approved 32,600 loan applications. These correspond to a total loan amount of P4.98 billion.
