The Department of Trade and Industry (DTI) eyes additional funds from government banks to shore up the P1-billion fund for lending by the SB Corp. for micro and small enterprises severely hit by the disruptions caused by the new coronavirus disease 2019 pandemic.
DTI Secretary Ramon Lopez said the amount of applications under COVID Assistance to Restart Enterprises (CARES) program has reached twice the initial fund at amount, P2 billion.
Lopez did not disclose the amount SB Corp is seeking from Land Bank of the Philippines and the Development Bank of the Philippines but said the DTI can borrow from the state banks wholesale for relending by SB Corp. while the bills giving stimulus packages are not yet passed.
Lopez said the DTI can tap its other funds for small businesses, the Pondo ng Pagbabago at Pag-asenso which is about P3.5 billion.
At the Laging Handa press briefing, Lopez said the SB Corp. targets to give out all of the existing P1 billion fund by the end of the month, of which P100 million have been approved for 1,175 applicants. Another P97.7 million is pending approval.
Under CARES, a micro enterprise with an asset side not exceeding P3 million can borrow between P10,000 and P200,000 while small enterprises with assets not exceeding P15 million can borrow up to P500,000.
The loans carry no interest but are slapped 6 percent service charge, SB Corp. received 22,932 applications.
