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 service micro, small and medium enterprises.

In a press conference on Friday at the DTI office in Makati City, SBCorp president and CEO Robert Bastillo said the two new loan programs set intended to benefit MSMEs are the Purchase Order (PO) Financing and Business Expansion Financing.

He said the PO Financing program, with a P500 million budget allocation, aims to provide accessible funding to MSMEs, enabling them to serve purchase orders and meet high or growing consumer demands that will sustain their business growth.

MSMEs operating for at least one year and having successfully served a minimum of three purchase orders within the past 3 years are eligible for the said loan program.

These businesses may borrow up to 80 percent of the indicated value in their Purchase Orders.

Increasing credit line up to P20M

“SBCorp offers loan amounts of P30,000 up to P 20.0 million, with only a one percent monthly interest rate. Built into one of the superior features of the program is an increasing credit line of up to P20 million and the option of multiple drawdowns against the approved credit limit. Loan terms are 30 days up to 360 days,” he said.

Loan applicants are required to submit a Barangay Certification for loans up to P100,000. For loans exceeding P100,000, a Mayor’s Permit or a Barangay Micro Business Enterprise Certificate is necessary. Additionally, a government-issued ID, proof of bank account, and any relevant corporate documents including Proof of Sales (as applicable), are needed.

Business expansion loan

Meanwhile, the Business Expansion Financing loan program, with a budget allocation of P1 Billion, supports newly established businesses and provides crucial financial assistance to emerging MSMEs to address the prevalent challenges associated with capital and operating expenses that hinder successfully establishing new businesses from the ground up.

Qualified borrowers of the Business Expansion loan program are MSMEs with business operations of less than one year or those who have just recently established their businesses.

In 2023, MSMEs represented 66.97 percent of the nation’s total employment, and the launching of the Business Expansion loan program is a strategic initiative of SBCorp that shall foster more inclusive economic development — a long-standing goal of the government, particularly the DTI.

SBCorp provides loan amounts that range from P50,000 to P3.0 million, with flexible payment terms of up to three years.