The Small Business Corporation (SB Corporation), a state-owned company under the Department of Trade and Industry (DTI), will start accepting applications for the COVID-19 Assistance to Restart Enterprises (CARES) Program through its offices in areas that will transition from the enhanced community quarantine (ECQ) to general community quarantine (GCQ) starting May 18, 2020.
 

The Inter-Agency Task Force on Emerging Infectious Diseases has announced that all provinces except National Capital Region (NCR), Laguna and Cebu City, will start to shift from ECQ to GCQ starting May 16, 2020. The facility is called P3-ERF (enterprise rehabilitation financing).

CARES Program is part of the administration’s economic relief program for micro and small enterprises affected by the COVID-19 pandemic. Under the program, micro and small enterprises operating for at least a year prior to 16 March 2020 and assets not exceeding P15M can avail of the program.

Also read: 5 government programs your business can avail of during lockdown

Micro enterprises with asset size of not more than P3M may borrow an amount ranging from P10,000 to P200,000 while small enterprises with asset size of not more than P15M may borrow loan amount not exceeding P500,000.

The SB Corporation said the P1B loan program will help cushion the economic impact brought about by the pandemic.

Micro enterprises with asset size of not more than P3M may borrow an amount ranging from P10,000 to P200,000 while small enterprises with asset size of not more than P15M may borrow loan amount not exceeding P500,000.

The loan shall be used to help the enterprise stabilize or recover from its losses. Specifically, the following purposes are qualified:

1. Updating of loan amortizations for vehicle loans or other fixed asset loans of the business;
2. Inventory replacement for perishable stocks damaged; and
3. Working capital replacement to restart the business.

Interest rate shall be at 0.5% per month (discounted basis); and grace period of 6 months on principal payments.

Loan applicants may visit the SB Corporation’s website www.sbgfc.org.ph for the application form and submit the accomplished form and requirements to the nearest SB Corporation office or Negosyo Center in areas under GCQ and modified GCQ.

SB Corporation will practice strict workplace safety protocols. Walk-in clients are required to wear face masks and practice social distancing.

On top of this option from the government, UnionBank also offers fast and hassle-free business loans through SeekCap, an online lending marketplace built for SMEs. For more details, you can go here. 

Also read: UnionBank ups MSME lending

Article source: DTI