The Department of Trade and Industry’s (DTI) financing arm, Small Business (SB) Corp., said Wednesday it has approved PHP2.27 billion worth of loans under the COVID-19 Assistance to Restart Enterprises (CARES) program.
These loans were applied by 21,358 micro, small, and medium enterprises (MSMEs).
Of the said numbers, PHP2 billion of loans were already released to 19,601 loan applicants.
The DTI started to roll out the CARES program in May 2020 to help MSMEs to recover from their losses due to lockdowns amid the pandemic and help them restart their business operations.
Under the Bayanihan 2, SB Corp. secured PHP10-billion funding to continue the roll out of the zero-interest loan program for MSMEs through CARES 2 program.
CARES 2 program expanded the loan to medium enterprises.
Under this program, SB Corp. can provide loan amounting to PHP10,000 for businesses with minimum asset size PHP50,000; PHP20,000 loan for businesses with PHP100,000 minimum asset; PHP40,000 for those with a minimum asset of PHP200,000; PHP60,000 for those with a minimum asset of PHP300,000; PHP80,000 for those with a minimum asset of PHP400,000; and PHP100,000 for businesses with minimum asset of PHP500,000.
SB Corp. can extend PHP150,000 worth of loan to businesses with assets valued at PHP750,000 and PHP1 million worth of annual sales.
Those with a minimum asset of PHP1 million and annual sales of PHP1.5 million can apply for loans worth PHP200,000.
DTI’s financing arm does not collect interest from loans but instead charges service fees of 4 percent for loans with a one-year term, 6 percent for two-year loans, and 7.5 percent for three-year loans.
Article source: PNA