SMALL Business Corp.(SBCorp), the financing arm of the Department of Trade and Industry, has opened a special loan facility that will grant financing assistance to micro, small, and medium enterprises (MSMEs) devastated by Typhoon Carina.
SBCorp. said it launched on August 27 the Enterprise Rehabilitation Financing (ERF) program which aims to help MSMEs recover and rebuild from the damage brought by the typhoon.
Robert Bastillo, SBCorp president and chief executive officer, said the emergency fund offers concessional terms not currently available in the market.
Bastillo said ERF aims to finance the immediate needs of MSMEs such as the repair and replacement of damaged fixed assets and inventories, operational disruption, and revenue loss.
New and existing borrowers of SBCorp may borrow a maximum of P300,000 payable monthly up to three years plus a three-month grace period.
Loans are interest free for the first year, and 1 percent per month interest rate based on diminishing balance shall be levied for the second and third year.
MSMEs in the following areas are qualified to apply for the program: National Capital Region, Ilocos Norte, La Union, Bataan, Pampanga, Bulacan, Tarlac (Camiling), Cavite, Rizal, Laguna (Mabitac), Oriental Mindoro (Pinamalayan and Baco), Romblon (San Andres), Zamboanga (Tambulig), Davao Occidental (Jose Abad Santos and Trinidad) and Cotabato (Kabakan and Pikit).
Bastillo said existing borrowers who are current in their loan repayments and have yet to fully reach the P300,000 loan cap can quickly access this facility without needing to submit any documentary requirements.
New borrowers only need to submit their Mayor’s Permit or Barangay Micro Business Enterprise certificate for loans over P100,000, or Barangay Certification for loans up to P100,000. In addition, all new borrowers must provide government-issued ID, proof of bank or e-money account, and corporate documents, if applicable.
