December 4, 2022

Eureka News

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‘Paeng-hit companies can borrow money from SBCorp’

2 min read

The Department of Trade and Industry (DTI) has advised small business owners in typhoon-hit areas to contact the Small Business Corp. (SBCorp) and leverage DTI’s funding arm to recover from the onslaught of Severe Tropical Storm Paeng (internationally known as Nalgae).

So said DTI-Consumer Protection Group Assistant Secretary Ann Claire C. Cabochan in a television interview last Thursday, citing that SBCorp has lending programs and micro-business lending facilities.

Those involved in retail and affected by “paeng” can also apply to SBCorp, Cabochan said in Tagalog.

Aside from seeking support from the Commerce Department’s finance department, Cabochan said small business owners could also turn to the Negosyo centers in the various locations.

The DTI official said those owners could also turn to the agency’s “negosyo” (business centers) centers in various locations if they were to build capacity, for example. “[Pwede rin sila makipag-ugnayan sa ating mga negosyo center dun sa different localities, para sa kanilang kailangan,for instance, capacity-building para sila’y makabangon muli dun sa kalamidad.]”

According to Section 4 of Republic Act 10644, Negosyo Centers are responsible for building local support networks and providing market links for MSMEs
Development.

Another function, according to the said law, is to “facilitate access to grants and other forms of financial support, shared service facilities and equipment and other support for MSMEs”.

borrow windows

Last May, SBCorp launched a lending program for micro, small and medium-sized enterprises (MSMEs). The program, called RiseUP Tindahan, is open to MSMEs in the food retail sector. However, these MSMEs must operate in the supply chain of a Fast Moving Consumer Goods (FMCG) operator accredited by SBCorp.

A lending window has also been opened for sari-sari shops with FMCG accreditation. This window offers a maximum borrowable amount of P300,000. Another program called “SME Tindahan” is aimed at retail stores, dealers and distributors with FMCG accreditation and has a maximum borrowable amount of P5 million.

According to SB Corp. Loan applicants must have a 100 percent Filipino-owned business (for sole proprietorships or partnerships). The MSME must have an asset size of no more than P100 million (excluding land value). It must also have been involved in the supply chain with an SBCorp-accredited FMCG company for at least one year. To borrow more than P1M, the company must be involved in the supply chain for at least three years.

SBCorp accepts loan applicants who do not have delinquent accounts under any of DTI’s financing arm loan programs.

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