Legarda encourages MSMEs to avail of LANDBANK loan program amid Covid-19April 21, 2020
Deputy Speaker and Antique Lone District Representative Loren Legarda encourages Micro, Small, and Medium Enterprises (MSMEs) to avail of the I-RESCUE (Interim Rehabilitation Support to Cushion Unfavorably-affected Enterprises by Covid-19), a new lending program launched by LANDBANK in support of RA 11649 or the “Bayanihan to Heal as One Act.”
As principal sponsor and co-author of the Magna Carta for Micro, Small and Medium Enterprises, Legarda assures that MSMEs will be given assistance to cushion the impact on businesses during this time of Covid-19 crisis.
Under the I-RESCUE, interested enterprises and cooperatives may borrow up to 85% of their need for working capital, with an interest rate of 5% per annum, payable for a maximum of five years. The lending program also gives a grace period on the principal payment.
“Based on the 2018 statistics of the DTI, 99.52% of all businesses in the Philippines are MSMEs. MSMEs are the lifeblood of our economy and we should make sure that they get the help they need to recover from the adverse effects that COVID-19 may bring about,” Legarda said.
The I-RESCUE program also offers restructuring of existing loan accounts via additional loan, extended repayment period, or through other means (or combination of means). The loan may be extended up to a maximum of 10 years, with up to 3 years grace period on the principal amount and up to 1 year grace period on interest.
“As one of the major contributors of our economy, we must ensure that our MSMEs are provided of the financial needs to ensure their survival, amidst the COVID-19 crisis,” Legarda concluded.