Legarda encourages MSMEs to avail of SBCorp’s CARES ProgramSeptember 1, 2020
Deputy Speaker and Antique Lone District Representative Loren Legarda encourages Micro, Small, and Medium Enterprises (MSMEs) to avail of the COVID-19 Assistance to Restart Enterprises (CARES) Program of the Small Business Corporation (SBCorp), which is a Php 1 billion rehabilitation financing under the Pondo sa Pagbabago at Pag-asenso (P3) to support MSMEs affected by the economic impact of the pandemic.
Legarda, principal sponsor and author of Republic Act No. 9501 or the Magna Carta for MSMEs and former Chair of the Senate Committee on Finance, said that this program is a loan facility that will help the business operations of MSMEs that were affected by the current pandemic.
“MSMEs play a vital role in generating employment opportunities and better income throughout the country especially in poor and rural communities. Comprising 99.52% of all the businesses in the Philippines, MSMEs have suffered from the overall impact of the pandemic due to both the decline in business operations and customer demands. This SBCorp CARES program is therefore a big help for them to revive their operations and ensure their business continuity,” Legarda said.
Under the CARES Program, all Filipino-owned micro and small enterprises with at least one (1) year in operation prior to March 16, 2020 and with assets not more than 15M may qualify for the loan program with zero interest. The program, however, requires a corresponding one-time service fee of 6% for the 18-month loan term and an 8%-service fee for the 30-month loan term. Micro enterprises with asset size of not more than Php 3M may borrow from Php10,000 up to Php200,000. Small enterprises with asset size of not more than Php 15M may borrow a higher loan amount but not to exceed Php500,000. The lending program also gives a grace period on the principal payment.
Due to the restrictions of movements, SBCorp has provided an online platform where interested MSMEs can submit their applications at https://brs.sbgfc.org.ph/ with the following documentary requirements:
• Fully-accomplished loan application form
• One (1) Government-issued ID with picture
• Proof of permanent business address
• Barangay or Municipal Business Permit (for loans up to P50,000)
• DTI/SEC Registration (for loans more than P50,000)
• Mayor’s Business Permit (for loans more than P150,000)
• Post-dated checks (for loans more than P150,000)
• 2019 financial statements (for loans more than P200,000)
• BIR Registration (for loans more than P300,000)
Upon loan application approval, applicants are advised to go to the nearest SBCorp office for the signing of needed documents. As of July 30, 2020, SBCorp received a total of 23,620 online applications with 1,306 accounts released amounting to Php 97.2 million; 3,676 accounts are approved for release amounting to Php219.8 million; 464 accounts are scheduled for release amounting to Php 31.2 million; and 920 accounts are awaiting client’s signature for processing of release with Php 58.6 total loan amount.
“As the backbone of our economy, we must continue to provide MSMEs with financial and technical assistance to ensure their survival, especially amid this COVID 19. We must continue to strengthen our MSME programs because aside from generating employment opportunities and better incomes, MSMEs are crucial partners of the government in helping our creative industries flourish,” Legarda concluded.#