THE Department of Trade and Industry (DTI) will soon start processing loans for micro, small and medium enterprises (MSMEs) under its new coronavirus disease 2019 (COVID-19) Emergency Response Facility (ERF).
DTI Undersecretary Ruth Castelo said microfinance institutions (MFIs) which are tapped by the DTI’s SB Corp. for the initial P1-billion fund under the Pondo sa Pagbabago at Pagasenso (P3) ERF have been allowed to operate under enhanced community quarantine (ECQ) and the general community quarantine (GCQ) starting May 1.
This is ahead of the original plan to open after the ECQ is lifted.
Castelo said the move will enable MSMEs access much-needed funds to restart operations.
Castelo said the supplemental guidelines on the reopening of MFIs as well as cooperatives will be released soon.
Under the P3 COVID response, micro-enterprises with asset size not exceeding P3 million may borrow from P10,000 up to P200,000, while small enterprises with asset size of not more than P10 million can borrow as much as P500,000.
Loans will have an interest rate of 0.5 percent per month
