Carina-hit MSMEs get loan reprieve from SBCorp

Micro, small and medium enterprises (MSMEs) hit by super typhoon “Carina” last month can now avail of as much as P300,000 worth of loans, as the Department of Trade and Industry lending arm, Small Business Corporation announced the kick-off of its newest lending facility on Tuesday.

SB Corp’s Enterprise Rehabilitation Financing (ERF) program went live yesterday, with an allotted budget from P200 million up to P500 million expected to serve some 2,000 MSME badly affected by last month’s typhoon, according to SBCorp president and CEO Robert C. Bastillo.

“If the affected MSMEs by Carina applied, then we cannot do anything but process them and extend the allotted budget,” Bastillo said in an exclusive interview with the DAILY TRIBUNE.

Only those badly hit

Bastillo stressed that the ERF program for MSMEs is only offered in areas declared under a state of calamity by the National Disaster Risk Reduction and Management Council (NDRRMC) during the onslaught of “Carina” last 24 July.

“We know the challenges of even just regaining the level of normal business operations after a devastating blow brought by a typhoon that broke the rainfall record of super typhoon “Ondoy.” With concessional terms not available in the market today, this emergency fund is intended to finance the immediate needs of MSMEs, including repair and replacement of damaged fixed assets and inventories, operational disruption, and revenue loss,” he explained.

With the said program, new and existing SBCorp borrowers may borrow a maximum of P300,000, payable monthly for up to three years.

A three-month grace period, on the other hand, may also be secured should loan borrowers see the need for a reprieve from payments.

He said loans are interest-free for the first year, and a percent per month interest rate based on diminishing balance shall be levied for the second and third years.

MSMEs in the following areas are qualified to apply for the program: National Capital Region, Ilocos Norte, La Union, Bataan, Pampanga, Bulacan, Tarlac (Camiling), Cavite, Rizal, Laguna (Mabitac) Oriental Mindoro (Pinamalayan and Baco), Romblon (San Andres), Zamboanga (Tambulig), Davao Occidental (Jose Abad Santos and Trinidad) and Cotabato (Kabakan and Pikit).

“Our existing borrowers who are current in their loan repayments and have yet to fully utilize the P300,000 loan cap in their loans can quickly access this facility with no other documentary submission or requirement to be asked from them,” Bastillo added.

He said new borrowers need only to submit their Mayor’s Permit or Barangay Micro Business Enterprise Certificate for loans of more than P100,000; or Barangay Certification for loans up to P100,000, plus government-issued ID, proof of bank or e-money account, and corporate documents, if applicable.

‘Our existing borrowers who are current in their loan repayments and have yet to fully utilize the P300,000 loan cap in their loans can quickly access this facility with no other documentary submission or requirement to be asked from them.’

Bastillo said SB Corp is accepting applications through the loan portal at https://brs.sbcorp.ph and “will remain open until the end of September 2024.”

“We developed this product as a mainstay product, meaning whenever there is a calamity, we will just switch this on which affected MSMEs can quickly apply,” according to Bastillo.