A number of Micro, Small and Medium Enterprises (MSMEs) in Catanduanes have been advised by the Department of Trade and Industry (DTI) provincial office to take advantage of the P1-billion loan facility being offered by the Small Business Corporation to support enterprises affected by the economic impact of the Covid-19 pandemic.
On separate occasions, DTI personnel met with owners and representatives of the local MSMEs to brief them on the requirements set by SB Corp. for availment of the Covid 19 Enterprise Rehabilitation Financing facility under the Pondo sa Pagbabago at Pag-asenso (Covid19 P3-ERF).
Being implemented under DTI’s guidance, the facility will be implemented once the Community Quarantine declarations are lifted by the national government and/or respective Local Government Units (LGUs).
Under the ERF loan fund, 100% Filipino-owned micro and small enterprises with at least one year continuous operation prior to March 2020, and whose businesses suffered drastic reduction in sales during the ensuing epidemic may apply for the loan.
Micro enterprises with asset size of not more than P3.0 million may borrow P10,000.00 up to P200,000.00 while small enterprises with asset size of not more than P10.0 million may borrow a higher loan amount but not to exceed P500,000.00.
The asset size is exclusive of the land on which the particular business entity’s office, plant and equipment is situated.
For Micro Enterprises, the requirements for the loan consist of the fully-accomplished Loan Application Form and Signature Card, one (1) government-issued ID with picture, barangay business certification permit, proof of permanent business address, DTI business registration (for loan amounts of more than P50,000 up to P150,000) and Mayor’s Business Permit (for loan amounts of P150,000 up to P200,000).
The Micro Enterprise loans carry terms of up to 12 months (P50,000 or less) or 24 months (more than P50,000).
The loan shall be used to help the enterprise stabilize or recover from its losses. Specifically, the loan may be used for the following purposes: updating of loan amortizations for vehicle loans or other fixed asset loans of the business; inventory replacement for perishable stocks damaged; and, replacement of working capital replacement to restart the business.
The loan carries an interest rate of 0.5% per month (discounted basis) and a grace period on payments until such time that the economic crisis has abated.
For Small Enterprises with loan amount of more than P200,000 up to P300,000, the requirements will include post-dated checks and audited 2019 Financial Statements, while for loans of more than P300,000 to P500,000, an additional requirement would be the BIR Certificate of Registration aside from the other documents.
According to DTI Secretary Ramon Lopez, the P3-ERF facility is part of the economic relief program of the administration of President Rodrigo Roa Duterte for small businesses further marginalized by the Covid19 epidemic.