Daily TribuneThe loan facility is intended to strengthen the partnership between the PFA and DTI in micro, small and medium enterprise development
(From left) Small Business Corporation president Bobby Bastillo, Trade Acting Secretary Christina Roque and Sam Christopher Lim, chairperson of the PFA, signed the MoU on Tuesday at the DTI office in Makati City.
photograph by raffy ayeng for the daily tribune
The Small Business Corporation (SB Corp), the lending arm of the Department of Trade and Industry (DTI), will provide a loan facility for franchisees following the sealing of a memorandum of agreement (MoA) between the SB Corp and the Philippine Franchisers Association (PFA) on Tuesday.
The loan facility is intended to strengthen the partnership between the PFA and DTI in micro, small and medium enterprise (MSME) development.
The MoA was signed by Acting DTI Secretary Christina Roque, SB Corp. president Robert “Bobby” Bastillo, and PFA chairperson Sam Christopher Lim.
Franchising brands
According to Roque, the partnership will enjoin MSMEs to franchise their brands or enter the franchise business.
“Frequently, now that we are global already, sometimes the business is already a sunset industry. The best way to recover or to be able to bounce back and grow is to get into franchising. If they do not have enough money, then they can apply for a loan using the franchise model. Because with a franchise, the chances of success are higher,” according to Roque.
She said even overseas Filipino workers are being encouraged to open a franchise business for them to grow, the moment they decide to go back to the Philippines.
“We at the DTI want to open different business opportunities for Filipinos and the businesses that suit them. Franchise is a very strong option to enable MSMEs to better their lives,” she added.
Prospective franchisees
The PFA, as part of the MoA, will prepare a list of prospective franchisees to be sent to the DTI who would want to avail of the loan, to be scrutinized by the SB Corp.
We have about 200 members that cover about 500 to 600 brands.
“We have about 200 members that cover about 500 to 600 brands,” Lim said.
The PFA is a voluntary self-regulating body for franchising in the country, and its members are bound by the Fair Franchising Standards (FFS), the Association’s code of ethics, which exhorts members to practice transparency and fairness in the conduct of the sale of their franchises.
Aside from providing loans, the DTI, through the SBCorp and the PFA, will have a joint promotion and capability building for franchisers, while the DTI will also send prospective franchisors to training programs.
Meanwhile, SB Corp’s Bastillo said there is already an approved product line or program offering approved by the SB Corp. Board in preparation for the MoA signing.
All systems go
“We are already all systems go on this. We are just awaiting the top 200 franchisors from the PFA. We can offer P500 million to P1 billion funding for the whole facility. We are ready for it,” said Bastillo, adding that the loan facility is open to both franchisees and prospective franchisees or first-timers who can be part of the program.
We at the DTI want to open different business opportunities for Filipinos and the businesses that suit them. Franchise is a very strong option to enable MSMEs to better their lives.
Bastillo said SB Corp can provide loans to franchisees for the program from P200,000 to P1 million, “but in general, the loan facility of the SB Corp starts with the minimum of P30,000 up to P3 million for first-time borrowers, collateral-free for repeat borrowers, meaning, continuously or those we call ‘suki.’”
“These ‘suki,’ he said, “can increase their loan up to P5 million, collateral-free.”
