Secretary Ramon Lopez of the Department of Trade and Industry (DTI) yesterday called for the need to replenish the P5-billion fund for a microfinance program for micro, small and medium enterprises (MSMEs) if the country continues to rebuild economically from the ongoing worldwide pandemic.
Lopez said the DTI will seek additional allocation or will borrow P1.5 billion to beef up the fund.
This developed as Secretary Bernadette Romulo-Puyat of the Department of Tourism (DOT) yesterday announced the government has eased the terms on business loans to tourism enterprises under a separate component of the lending facility.
Lopez said the COVID-19 Assistance to Restart Enterprises (or CARES) microfinancing for MSMEs under the Small Business Corp. (SBCorp) will be fully utilized by the end of the month.
As of June 9, the program has processed and approved P4.5-billion in loans that covered 30,408 applications.
“In view of this, there is a need to replenish this fund if we are to lend out to more MSMEs affected by the pandemic,” said Lopez.
The CARES program draws P1 billion in funds from the 2021 General Appropriations Act (GAA) and P4 billion from BAYANIHAN 2.
In a separate statement, the DOT said SBCorp. extended to two years from one year the grace period for repayment of the loans under CARES for Tourism Rehabilitation and Vitalization of Enterprises and Livelihood (CARES for TRAVEL) Program.
It also now allows for a second round of loans for employee retention and a maximum loanable amount of P5 million.
Under the amended guidelines, the loan amount shall not exceed 15 percent of annual sales of the business or 20 percent of asset size, whichever is higher – not lower as previously required by SB Corp.
