THE Small Business Corp. (SB Corp.) said it will start accepting loan applications on Oct. 26, after receiving an allocation of P10 billion for lending to micro, small and medium enterprises (MSMEs).
Under the Bayanihan to Recover as One Act (Bayanihan II) or Republic Act 11494, SB Corp. is authorized to lend P10 billion more for its COVID-19 Assistance to Restart Enterprises program, with P6 billion set aside for the tourism sector.
Loan sizes will depend on MSMEs’ assets and annual sales, the Trade department said in a statement Thursday. It said it will allocate the loans in such a way as to maximize the number of borrowers.
Borrowers will be charged a one-time service fee of between 4% and 8%, which will vary by loan duration. The maximum term is four years. Payments come with a grace period of six months, and one year for tourism businesses.
MSMEs with financial statements for 2018 and 2019 filed with the Bureau of Internal Revenue, with no major negative credit track record, are assured of receiving loans, the department said.
Applicants with no financial statements must submit their barangay or municipal business permits, photos or video clips of their business assets, and proof of sales.
SB Corp. targets 50,000 loan approvals for MSMEs over the rest of the year, or a monthly rate of 15,000 to 18,000 borrowers. — Jenina P. Ibañez