The Land Bank of the Philippines in January has approved a total of P41.3-billion in loans to be used to help small businesses recover from the pandemic.

The funds were distributed to 825 borrowers nationwide including 549 micro and small enterprises, 135 big enterprises, 134 cooperatives and seven microfinance firms, according to a statement by LandBank on Tuesday.

Loans under the I-RESCUE or the Interim Rehabilitation Support to Cushion Unfavorably-Affected Enterprises by Covid-19 Lending Program can cover up to 85 percent of the business owner’s capital need and imposes a seven-percent fixed interest rate for one year to be repriced afterwards.

Loans extended until December

LandBank president Cecilia Cayosa Borromeo said application for I-RESCUE loans has been extended until December this year. “We will continue to serve their financial requirements to further advance the country’s ongoing economic recovery, she said.”

Micro, small and medium enterprises or MSMEs comprise 99 percent of all businesses in the country.

According to a survey by the Asian Development Bank, 73 percent out of 1,804 MSMEs closed shop during the strict lockdowns in March 2020.

However, based on a wider survey by the Department of Trade and Industry, 56 percent of 15,434 MSMEs reopened in 2021.

In the same year, ADB data show that the number of MSMEs increased by 13 percent to 1,080,810 with highest growth in wholesale and retail trade, manufacturing and transportation.