Bagong Henerasyon (BH) Partylist on Saturday announced a partnership with the Department of Trade and Industry’s Small Business Corporation (SB Corp) to expand access to affordable loans for small businesses — providing low-interest, collateral-free financing to help entrepreneurs break away from the abusive “5-6” lending system.

The “5-6” scheme, long used by informal lenders, often charges interest rates as high as 20 percent, trapping micro, small and medium enterprises (MSMEs) in cycles of debt. SB Corp, the government’s MSME financing arm, aims to provide a fair and sustainable alternative through its loan program.

Under the initiative, entrepreneurs can borrow P30,000 to P3 million, payable over up to three years, with only 1 percent annual interest and no collateral required. Applications will be received during the Business Loan Roadshow on November 11 at the West Triangle Multipurpose Building in Quezon City.

“This is the real alternative to 5-6 lending — fair, humane and pro-Filipino,” BH Partylist Rep. Robert Nazal said. “We’re giving small business owners the chance to grow without falling into debt traps.”

Applicants need only present a government-issued ID, a business permit (barangay certification, Barangay Micro Business Enterprise certificate, or mayor’s permit), and proof of a bank account. Loans above P100,000 require postdated checks. Pre-assessments run until November 8, with priority given to the first 150 applicants.

“This partnership gives entrepreneurs access to capital that empowers, not exploits,” former BH Rep. Bernadette Herrera, a long-time MSME advocate, said. “Financing should be a bridge to growth, not a burden that keeps people in poverty.”

Herrera said the initiative aligns with BH’s mission of building an economy that includes everyone, emphasizing that MSMEs account for over 99 percent of businesses in the country and play a crucial role in job creation and local economic development.

“When we help small businesses thrive, we strengthen families, communities and the national economy,” Herrera added.

Nazal encouraged aspiring business owners to take advantage of the roadshow.
“This is not just a loan program — it’s a lifeline for every Filipino who dares to dream bigger,” he said.