Gov’t launches P6B loan package to aid drivers, MSMEs

The Department of Trade and Industry said its lending arm, Small Business Corporation (SBCorp), has rolled out loan programs for transport operators, drivers and micro, small and medium enterprises (MSMEs) to cushion the impact of Middle East tensions.

The DTI said P2 billion has been allocated to finance small transport operators and drivers with business licenses who plan to transition to electric vehicles.

Under the program, borrowers may access up to P1.5 million per vehicle, with a maximum of P3 million per borrower, payable over five years. The loan includes a grace period of up to one year on both principal and interest.

Applications will open on 21 April through the SBCorp Money app.

Meanwhile, Executive Secretary Ralph Recto said an additional P4 billion in easy loans has been set aside for distressed MSMEs as part of a broader aid package approved by Ferdinand Marcos Jr..

The emergency loan program allows MSMEs to borrow between P30,000 and P20 million to address rising logistics costs, cash flow constraints and supply chain disruptions.

“As part of the safety nets not only for the highly vulnerable sectors but for the middle class and small entrepreneurs as well, President Marcos has cleared a program for MSMEs in distress as a result of the global oil shock,” Recto said.

He added that the loans, which carry low interest rates and a five-year term, are intended to serve as a lifeline for businesses facing limited access to financing.

The assistance forms part of measures discussed by the government’s Unified Package for Livelihoods, Industry, Food and Transport (UPLIFT) Committee to mitigate the economic impact of rising oil prices.

SBCorp said applications can be completed online, with processing expected to take seven to 10 days for those with complete requirements.

Despite a 5 percent increase in bank lending to MSMEs to P574.8 billion as of end-December 2025, this still accounts for only 4.73 percent of the country’s total bank loan portfolio, based on data from the Bangko Sentral ng Pilipinas.