SBCorp unveils 2 new loan programs for MSMEs

The Small Business Corporation (SBCorp), the lending arm of the Department of Trade and Industry (DTI), on Friday launched two new loan programs designed to support micro, small, and medium enterprises (MSMEs).

In a press conference held at the DTI office in Makati City, SBCorp President and CEO Robert Bastillo said the two new programs — Purchase Order (PO) Financing and Business Expansion Financing — aim to provide relief to MSMEs.

The PO Financing program, with a ₱500-million budget allocation, seeks to offer accessible funding to MSMEs, enabling them to fulfill purchase orders and meet increasing consumer demands critical for sustaining business growth.

MSMEs operating for at least one year and having successfully fulfilled a minimum of three purchase orders in the past three years are eligible for this loan program. These businesses may borrow up to 80 percent of the indicated value in their purchase orders.

“SBCorp offers loan amounts of P 30,000 up to P 20.0 million, with only a 1% monthly interest rate. Built into one of the superior features of the program is an increasing credit line of up to ₱20.0 million and the option of multiple drawdowns against the approved credit limit. Loan terms are 30 days up to 360 days,” Bastillo said.

Loan applicants must submit a Barangay Certification for loans up to ₱100,000. For loans exceeding ₱100,000, a Mayor's Permit or a Barangay Micro Business Enterprise (BMBE) Certificate is required. Additional requirements include a government-issued ID, proof of bank account, and relevant corporate documents, including proof of sales (if applicable).

Business Expansion Financing program

Meanwhile, the Business Expansion Financing loan program, with a P1-billion budget allocation, is designed to support newly established businesses by addressing challenges related to capital and operating expenses, which often hinder startups from gaining a foothold.

Qualified borrowers for this program include MSMEs with business operations of less than one year or those recently established.

In 2023, MSMEs accounted for 66.97 percent of the nation’s total employment. The launch of the Business Expansion loan program is a strategic initiative by SBCorp to foster more inclusive economic development — a key goal of the government, particularly the DTI.

SBCorp offers loans ranging from ₱50,000 to ₱3 million under this program, with flexible payment terms of up to three years. Loan repayment features a 0% interest rate for the first 12 months, followed by a 1% monthly interest rate on a diminishing balance for the remaining months.

“DTI and SBCorp acknowledge the challenges faced by newly established ventures, which is why the program includes a grace period of 12 months, in multiples of 3-month options. These loan program features address the lack of tailored financing solutions for Filipinos who also want to enter the current market but are unable to access the needed support,” said Trade Secretary Cristina Roque.

Additionally, Secretary Roque announced that the DTI will unveil three more financing programs this year: the Receivable Financing Program, the Creative Industry Fund, and the Halal Fund, all set to be launched next month.