Bagong Henerasyon (BH) Partylist on Saturday said it has partnered with the Department of Trade and Industry’s Small Business Corporation (SB Corp.) to expand access to affordable loans for small businesses, offering low-interest, collateral-free financing to help Filipinos break free from the abusive “5-6” lending cycle that has long trapped entrepreneurs in debt.

The “5-6” system — where informal lenders charge excessive interest rates, often up to 20 percent — has burdened countless micro, small, and medium enterprises (MSMEs) that struggle to access formal credit.

SB Corp., a government financial institution mandated to provide financing to MSMEs, is stepping in to provide a fair and sustainable alternative.

Under the program, entrepreneurs can borrow between P30,000 and P3 million, payable for up to three years, with only 1 percent annual interest and no collateral required.

Applications will be accepted during the Business Loan Roadshow on 11 November 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,” he added.

Applicants need only to 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.

For loans above P100,000, postdated checks are required. Pre-assessments are open until 8 November, and only the first 150 applicants will be prioritized.

“This partnership gives entrepreneurs access to capital that empowers, not exploits,” former BH Rep. Bernadette Herrera, a longtime MSME advocate, said.

“Financing should be a bridge to growth, not a burden that keeps people in poverty,” she stressed.

Herrera said the initiative reflects BH’s core mission of building an economy that includes everyone, not just the privileged few.

She emphasized that MSMEs make up more than 99 percent of Philippine businesses and are vital to job creation and local development.

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