Rod Mabiasen Jr., business head of BanKo Financial Inclusion and Microfinance Solutions, said BanKo, a subsidiary of Bank of the Philippine Islands, is providing NegosyoKo Loan and NegosyoKo Lite which are micro-business loan products tailor-made for self-employed micro entrepreneurs.

Mabiasen said these loan products offer loan amounts of P10,000 to P150,000 without collateral while securing an amount of P150,000 to P300,000 requires collateral.

He said these products have the lowest interest rate in micro-business loans, and offer fast approval and flexible payment terms.

“Our requirements in payment of amortization are customized based on the capacity (to pay) of the borrower… We match it with the cash flow of our businesses. For example, a poultry or piggery, if its harvest and selling are only once a month so we will not force your amortization payment (right away),” he added in mixed English and Filipino during the MSME Week 2023.

Small Business Corporation (SBCorp) head for Special Programs Ma. Linda Orsos said all MSMEs, including sari-sari stores, can avail of financing programs –the RISE UP Multi-Purpose and RISE UP Tindahan Loan– under the RISE UP with SBCorp.

The RISE UP with SBCorp is a loan program that aims to sustain the gains of MSMEs that have survived the past two years of crisis by providing multi-purpose loans that have soft terms and can be easily accessed.

“Why soft terms? Because, besides the lower interest, our payment period is longer. We provide a grace period of up to 12 months where payment is fixed –three months, six months, nine months and 12 months. This is only for the principal,” she said in mixed English and Filipino during the same event.

Orsos said the RISE UP Multi-Purpose is a program financing in which existing SBCorp existing borrowers and those intending to start their business can avail of.

“The RISE UP Tindahan Loan (can be availed by) sari-sari stores, retail stores, dealers and distributors under the network of partner  FMCGs (fast moving consumer goods companies),” she added.

Orsos said SBCorp, the financing arm of the Department of Trade and Industry, has streamlined the basic documentary requirements for availing the loan programs.

“Barangay certificate when the loan is up to P100,000 or mayor’s permit when more than P100,000. When it is a corporation or partnership, we need to submit corporate documents,” she added.

By Alithea De Jesus

The Philippine Guarantee Corp. (PhilGuarantee) has made available P42.3 billion in credit guarantee facilities for pandemic-hit micro, small and medium enterprises (MSMEs), of which P3.6 billion is expected to benefit an initial batch of 6,000 borrowers by year-end.

PhilGuarantee president-CEO Alberto Pascual said he expects another P20 billion to be accessed by the middle or towards the end of 2021 covering about 40,000 MSMEs.

In an emailed report to Finance Secretary Carlos Dominguez III, Pascual said that banks have now been extending more loans to micro and small businesses, following the launching of this program, unlike before when lenders would only prioritize the needs of their existing MSME clients.

According to Pascual, 50 percent of this multibillion-peso loan amount now available to MSMEs is guaranteed under the program, which is higher than Thailand’s offer of 30 percent guarantee to its small and medium-sized businesses.

“Just like in Thailand, the freed up reserves or extra liquidity of banks were not used to lend to MSMEs. But now we are seeing banks becoming active again and some in fact have been pre-clearing with us bigger loans for new projects,” Pascual said.

PhilGuarantee has so far accredited 8 universal banks, 1 commercial bank, 6 thrift banks and 10 rural banks for its guarantee facilities for MSMEs.

The applications for accreditation of another 16 banks are also being processed to further expand the reach of the guarantee program for MSMEs, Pascual informed Dominguez, who chairs the governing board of PhilGuarantee.

“This is the first time PhilGuarantee is providing guarantee coverage for MSMEs,” Pascual said.

Currently, the Bank of the Philippine Islands (BPI), Union Bank of the Philippines (UnionBank), Malayan Bank (MB), Bangko Kabayan (BK) and the New Rural Bank of San Leonardo (NRBSL) are the banks that have signed up guarantee agreements with PhilGuarantee.

“We are now processing thousands of MSME loan guarantee applications.  We expect availments to reach P3.6 billion up to year-end with about 6,000 borrowers and about P20 billion towards the end of next year covering about 40,000 MSMEs,” Pascual said.

Pascual said the average loan size under the guarantee program is less than P1 million, with the minimum loan amount set at P100,000 and availed of mostly by micro-enterprises borrowing from rural banks.

Under the guarantee program, the maximum term for working capital loans is 1 to 5 years with a 50 percent guarantee, and up to 7 years for term loans with the guarantee covering up to 80 percent of the loan amount.

According to Pascual, PhilGuarantee mirrors the terms of the loan that banks will grant to MSMEs.

“On a case-to-case basis, we can extend the guarantee up to 10 years depending on the banks’ risk appetite,” Pascual added.

The maximum loan amount that can be guaranteed under the program is P50 million with a guarantee fee of only 1.0 percent per annum.

Pascual said PhilGuarantee plans to start guaranteeing loans of small and medium-sized and large enterprises of up to P300 million with the P5-billion additional equity it will receive under the Bayanihan to Recover as One Act (Bayanihan 2).

“We can leverage the P5 billion additional equity 15 times. This will allow an extra guarantee capacity of P75 billion,” Pascual said.

Pascual said that with PhilGuarantee’s unimpaired capital of P23 billion, its current guarantee capacity at 15 times is P345 billion.

PhilGuarantee’s outstanding guarantees dropped from P207 billion at year end-2019 to only about P170 billion as of September 2020, but have recently seen an increase in the number of housing and SME applications for the guarantee, he added.

By THEPHILBIZNEWS STAFF

Good news for qualified MSMEs as the government will start to accept applications for its COVID-19 Assistance to Restart Enterprises (CARES) Program.

Through the Small Business Corporation (SB Corporation) offices in the areas that will transition from the enhanced community quarantine (ECQ) to general community quarantine (GCQ), the applications started last May 18, 2020.

According to Inter-Agency Task Force on Emerging Infectious Diseases has announced that all provinces except National Capital Region (NCR), Laguna and Cebu City, started to shift from ECQ to GCQ last May 16, 2020.

The 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 March 16, 2020 and assets not exceeding P15 million can avail of the program.

 The SB Corporation, an attached agency under the Department of Trade and Industry, said the P1 billion loan program will help cushion the economic impact brought about by the pandemic.

Micro enterprises with asset size of not more than P3 million may borrow an amount ranging from P10,000 to P200,000 while small enterprises with asset size of not more than P15 million 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

The interest rate shall be at 0.5% per month (discounted basis); and a 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.