The Department of Trade and Industry (DTI), through the Small Business Corp. (SBCorp), has set a target of up to PHP12 billion in loan disbursements for micro, small and medium enterprises (MSMEs) this year.
SBCorp President Robert Bastillo said the government is firm on helping small businesses expand their operations.
“The entire PHP12 billion is our target loan releases for the year,” he told journalists Wednesday night.
Last year, SBCorp extended about PHP11.2 billion, he said.
With the government encouraging more small businesses to open or expand their operations and the overseas Filipino workers (OFWs) affected by untoward events abroad to open businesses, the demand for loans has increased.
Bastillo remains confident about the availability of funds, noting that they can request for additional budget from the Department of Budget and Management (DBM) if needed.
He said they can tap their various loan facilities for the needed funds if there are fewer applications for some of these, or use the payments from the borrowers to finance new loans.
Bastillo said the bulk of the borrowers are micro entrepreneurs, adding that MSMEs account for about 90 percent of business establishments in the country.
He said the number of women borrowers is also rising after the launch of the Women’s Enterprise Fund, which provides loans worth PHP30,000 up to PHP20 million at 1 percent monthly interest rate, following a one-year grace period for principal and interest and no collateral for up to PHP5 billion loan.
Bastillo added that loans extended to women-borrowers account for about 60 percent of their total disbursement.
He said accessibility of loans, following the launch of of SBCorp’s mobile application, resulted in the increase of loans availed of by women entrepreneurs.
“Also, we’ve been talking to women groups, and they are the ones encouraging their members to apply for loans,” he said, adding that roadshows conducted by DTI also help encourage more borrowers take out business loans. (PNA)
