SBCorp marshals MSMEs into thriving businesses

Small Business Corp. (SBCorp), which is considered the bridge to financing businesses that are too small for bank financing, had aided 154,423 micro-entrepreneurs from July 2022 to May 2024.

The agency, which is the Department of Trade and Industry’s (DTI) financing arm, had taken bigger strides to reach far-flung areas and thus serve more businesses.

SB Corp’s focus is to provide funding for micro-entrepreneurs until they are big enough to seek bank financing.

Based on DTI records, SBCorp, through its Pondo Para sa Pagbabago at Pag-asenso (P3) program, has released P8.16 billion in loans over two years, representing a substantial increase from previous periods.

Part of the strides of SBCorp in bringing closer the government’s help, that is why according to SBCorp president and CEO Robert Bastillo has mobilized SBCorp’s employees in its regional offices to search for micro-entrepreneurs that need budgetary assistance.

He said his men and women have already reached Mindanao by means of Roadshows and seminars to impart how these micro business owners avail the loan assistance.

Under the P3 Program, a micro-enterprise can borrow between P5,000 up to P100,000 depending on its business need and repayment capacity.

Interest rate and service fees, all in, do not exceed 2.5 percent monthly which is a huge relief from the 20 percent monthly rate under the so-called 5-6 system.

Documentation is simplified and processing time is reasonable, which makes P3 a worthy competitor to shark lenders.

With his passion for serving MSMEs, Bastillo once again conferred a merit award during the 47th Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) annual meeting held last 15 to 17 May 2024 at the Sofitel Phnom Penh Phokeethra in Cambodia.

From a total of 110 entries from 35-member institutions in 21 countries, SBCorp was awarded under the Technology Development Category of the 2024 ADFIAP awards for its machine learning (ML)-Based Credit Scoring Model for micro loans.

The annual ADFIAP Awards gives recognition to member institutions that have undertaken projects that created positive impact in the areas of small and medium enterprises, the environment, infrastructure, technology, trade, local economy, corporate governance, and corporate social responsibility.

His men and women have already reached Mindanao by means of Roadshows and seminars to impart how these micro business owners avail the loan assistance.

In September 2023, SBCorp launched its ML-Based Credit Scoring Model for Micro Loans to expedite its loan evaluation process by determining the likelihood of default of microloan applications through a scoring tool that weighs in on the patterns of the gathered financial and non-financial data from the borrower.

The credit scoring tool is now being utilized for loans not exceeding P100,000.00 and for higher loan amounts after it is evaluated and needed enhancements are put in place.

DAILY TRIBUNE partnership

In the search for lenders to be served, SBCorp partnered with the DAILY TRIBUNE’s Asian Innovation Forum (Asian Innovation Forum), the publication’s corporate social responsibility vehicle.

It is a perfect match as both organizations have the same vision of guiding MSMEs closer to private and public financial institutions.

During one of the AIF sessions last December 2023, coinciding with the DAILY TRIBUNE’s Tindahan ni Tarsee Bazaar aimed to promote products of MSMEs, Bastillo gave the project a pat on the back for “walking the talk” and going beyond traditional journalism by organizing an event that assist MSMEs, whom he referred to as modern-day heroes.

The SBCorp. Chief likened them to overseas Filipino workers, who are the backbone of the economy during the difficult periods in its history.

While at the 9th AIF in San Pedro, Laguna last June, SBCorp Vice President for Innovation and Advocacy Wally Calderon presented another SBCorp’s flagship program called Rise Up, a set of different multi-purpose loans with low interest rates and flexible payment terms.

The SBCorp has been a proud partner as the AIF is going towards its 10th edition, along with other notable private and public institutions, namely MAYA, Philippine Charity Sweepstakes Office, Cebu CFI and UnionBank, among other partners.