As a new survey reveals that a very small percentage of micro, small, and medium enterprises (MSMEs) in the country are applying for loans due to fear of debt and high interest rates, the Small Business Corporation (SBCorp), the lending arm of the Department of Trade and Industry, on Tuesday launched its mobile app, SBCorp Money, simplifying the loan process to just a few taps.

The app launch coincided with the kickoff of the two-day MSME Bayanihan Caravan 2025 at the Philippine Trade Training Center–Global MSME Academy (PTTC-GMEA), a flagship initiative in celebration of National MSME Week.

During the event, Jamie Bawalan of the Boston Consulting Group (BCG) presented findings from a nationwide study involving 3,098 MSMEs, revealing that formal loan adoption remains low despite favorable lending terms.

“More than half of MSMEs (55 percent) have never applied for a loan, and among those who have not, 42 percent say they are afraid of going into debt. For a population that dreams of stability, the idea of borrowing often feels like a risk rather than an opportunity. Add to this the perception of high interest rates (34 percent) and complex application processes (16 percent), and it is not hard to see why formal borrowing remains low, even among businesses that need it most,” the study said.

Despite these concerns, the BCG found that loan conditions are relatively favorable: 59 percent of approved MSME loans carried interest rates between 1 to 5 percent, with most loan amounts being modest—37 percent under P50,000 and 33 percent between P50,000 to P200,000.

The study also showed that many MSMEs continue to rely on personal savings (44 percent), while only 36 percent believe the government is doing enough to support their access to financing.

“Many MSMEs are aware of public loan programs but find it difficult to access them or do not see them as applicable to their needs. Labor support programs also receive weaker feedback. Many business owners also report challenges in labor law awareness and compliance,” the study added.

A digital leap for financing

In response to these findings, SBCorp President and CEO Robert Bastillo hailed SBCorp Money as a major step forward in expanding digital access to financing for MSMEs nationwide.

The app replaces SBCorp’s previous web-based loan system with a more secure and user-friendly platform. It features a PhilSys-enabled electronic Know-Your-Customer (e-KYC) process, enabled through a partnership with the Philippine Statistics Authority and the Department of Information and Communications Technology.

“This shift to PhilSys-enabled e-KYC simplifies the onboarding process for our clients and enhances security by verifying identities using national ID data. It’s part of our commitment to make financing more accessible, efficient, and secure for MSMEs across the country,” Bastillo said.

Trade Secretary Cristina Roque also lauded the launch: “Digital tools like SBCorp Money are crucial in empowering MSMEs to thrive in a modern economy. By leveraging PhilSys, we are making financial services faster, safer, and more inclusive for entrepreneurs nationwide.”

Key advantages of the app include simplified registration through fast and secure e-KYC, faster loan processing via streamlined digital workflows, real-time tracking and notifications, and enhanced security through National ID integration.

SBCorp said the initiative aligns with the Philippine Development Plan’s goal of expanding digital financial inclusion and supporting MSME recovery and growth.

SBCorp Money is now available on the Google Play Store and Huawei AppGallery and is expected to benefit MSMEs in need of affordable and timely financing.