Loans for MSME up in March

State-run Philippine Guarantee Corp. (PhilGuarantee) has increased its guarantee program for the pandemic-stricken micro, small and medium enterprises (MSME), reaching a hefty P1.47 billion worth of guaranteed loans as of end-March 2021.

In a report to Finance Secretary Carlos Dominguez III, PhilGuarantee president and CEO Alberto Pascual said the latest figure represents a massive 612 percent growth from the program’s launch in December with only P207 million.

Still, the PhilGuarantee chief said MSME beneficiaries likewise grew by 312 percent in March 2021 from only 2,948 in December 2020.

“Majority of the MSME covered were from the wholesale and retail sector which accounted for 67.26 percent of the total, or P503.5 million with 9,113 MSME assisted,” Pascual explained.
“In terms of geographical distribution, all regions of the country had received assistance under the MGCP (MSME credit guarantee program),” he added.

Manufacturing sector took the second spot in guarantee coverage, accounting for 7.77 percent or P58.17 million for 1,048 MSME followed by the agriculture sector with P33.91 million for 158 MSME.

PhilGuarantee’s MGCP awards a 50 percent guarantee for working capital and a guarantee of up to 80 percent of the amount for term loans of up to seven years for capital expenses.

While at it, Pascual stressed the active participation of more banks to their guarantee program, increasing their current three partner banks by more than four times.

“Twelve more banks are expected to start submitting MSME for guarantee coverage as their facilities will be operational,” he said.