DTI’s SB Corp grants PHP 223.5M worth of loans to typhoon-hit Bicol MSMEs | Department of Trade and Industry Philippines

Legazpi City, Philippines — The Department of Trade and Industry (DTI) approved a total of PHP 223.5 million worth of loans to help micro, small, and medium enterprises (MSMEs) in Bicol recover from the recent typhoons. The loans are being facilitated through the Small Business Corporation (SB Corp), the financing arm of the DTI.

A total of 1,121 loan applications have been approved. The majority came from Camarines Sur with 874 applications, followed by Albay with 112 and Sorsogon with 68. Other provinces receiving assistance include Camarines Norte with 49 applications, Catanduanes with 15, and Masbate with 3.

As of today, the SB Corp. has already disbursed PHP 124 million to 654 borrowers. This represents 58% of the approved loans, and covers the period from October 23, 2024 to date.

DTI Region Director Dindo G. Nabol of Region 5 emphasized the importance of helping MSMEs, particularly during times of crisis, as MSMEs are the lifeblood of local communities.

“This loan assistance reflects our commitment to help them rebuild, recover, sustain jobs, and contribute to the region’s economic stability”, Director Nabol said.

The loans are being offered under the government’s Enterprise Rehabilitation Financing (ERF) program. This provides a loan window for MSMEs. Essentially, it serves as an emergency fund for working capital, designed to alleviate the financial impact of calamities on MSMEs. This includes damages to fixed assets, inventories, operational disruptions, and revenue loss.

Both new and existing SB Corp borrowers can apply for loans to a maximum of PHP 300,000. These loans are payable monthly up to three years. Borrowers can also secure a three-month grace period, in case they need a reprieve from payments.

To make these loans even more accessible, they are interest-free for the first year. For the second and third year, an interest rate of 1% per month is applied based on diminishing balance.

For loans over PHP 100,000.00, new borrowers need to submit a Mayor’s Permit or Barangay Micro Business Enterprise (BMBE) Certificate. For loans up to PHP 100,000.00, new borrowers must submit a Barangay Certification. In both cases, all new borrowers must also provide a government-issued ID, proof of bank or e-money account, and corporate documents, if applicable. ♦

Date of release: 23 January 2025

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