Due to low takeout of loans, the Department of Tourism (DOT) has been allowed to divert funds allocated to the sector for lending to other industries, according to the Small Business Corp. (SB Corp.)
SB Corp. administers the Bayanihan COVID-19 Assistance to Restart Enterprises (CARES) Santiago Lim, private sector representative at SB Corp. said the agency will carve out P1.5 billion from the DOT’s share in CARES of P3.8 billion and lend the amount to other industries.
Lim said SB Corp still has P300 million left from the original P6-billion allotment for CARES.But he said the cumulative funds could only last until September as SB Corp. processes and releases P500 million worth of loans per month.
Lim also said only P8 billion was released for CARES even as Bayanihan law approved P10 billion. This was to avoid the SB Corp., currently capitalized at P10 billion, to be oversubscribed.
SB Corp. and the Alliance of Concerned Truck Owners and Organizations (ACTOO) yesterday signed a memorandum of agreement on CARES for truckers.
ACTOO members may avail of interest- and collateral- free loans ranging from P200,000 to P5 million. – Irma Isip
