The Department of Trade and Industry (DTI) in Davao Region is set to roll-out its financing initiative, the Pondo Para sa Pagbabago at Pag-asenso (P3) on May 31.

P3 is a microfinancing initiative of the administration which aims to assist the small entrepreneurs that traditionally depend on the “5-6” lenders to fund their operation.

DTI-Davao Regional Director Maria Belenda Q. Ambi said P3 provides micro-enterprises an alternative source of financing that is easy to access and offered at a lowest interest rate compared to the 5-6 scheme.

The Small Business Corporation (SB Corp), DTI’s micro financing agency, has been tasked to deploy the funds through microfinance institutions (MFIs) and cooperatives and associations with lending facilities.
Radiowealth Finance Corporation and Cebuana Lhuillier, both of which have branches all over the country, have agreed as SB Corp’s conduits to assist micro entrepreneurs.
A representative from SB Corp discussed the mechanics and guidelines of the project.

“With SB Corp around, we and the MFIs will be clarified on how P3 will operate and how much interest rate shall be imposed,” Ambi said.

Aside from Radiowealth Finance Corporation and Cebuana Lhuillier, DTI-Davao Region has also invited local MFIs with sound operations throughout the region. These local financing firms will act as additional conduits of SB Corporation. The P3 funds shall be released to micro entrepreneurs through the identified and accredited conduits or MFIs.

To date, the Department of Budget and Management (DBM) has already released to SB Corp the first tranche of the P3 fund amounting to P334.25 million pesos.

P3 Program was piloted in Mindoro, Tacloban, and Sarangani last January.