Micro, small and medium enterprises (MSMEs) in areas that were affected by Super Typhoon Carina can apply for an emergency loan at lower-than-bank rates with the Small Business Corporation (SBCorp.) until the end of October 2024, according to an SBCorp. official.
Erika Maroon, provincial coordinator at SBCorp., in a recent webinar said the Enterprise Rehabilitation Financing (ERF) Program is the latest lending program of SBCorp., the government financing institution under the Department of Trade and Industry.
The ERF is an emergency funding that MSMEs can use as working capital to cushion the financial impact on their business operations of the onslaught of Super Typhoon Carina, which devastated large swathes of the country last July.
“MSMEs with business operations in areas declared as under state of calamity due to Typhoon Carina are qualified to apply for a loan to finance damages to fixed assets, inventories, operational disruption, and revenue loss,” said Maroon during her talk on soft financing for MSMEs.
The ERF program is open to all MSMEs in these Super Typhoon Carina-hit areas:
• National Capital Region
• Region 1 – Ilocos Norte; La Union
• Region 3 – Bataan; Pampanga; Bulacan; Tarlac (Camiling only)
• Region 4A – Cavite; Rizal; Laguna (Mabitac)
• Region 4B – Oriental Mindoro (Pinamalayan, Baco); Romblon (San Andres)
• Region 9 – Zamboanga del Sur (Tambulig)
• Region 11 – Davao Occidental (Jose Abad Santos)
• Region 12 – Cotabato (Kabacan, Pikit)
Maroon said the maximum loanable amount is P300,000, and applications are accepted until the end of October 2024.
“Hindi pa naman sure kung hanggang October 2024. Puede pa itong ma-extend,” she added.
On the payment terms, the loan is payable monthly up to three years, with an optional three-month grace period before the borrower starts monthly amortization payment.
Regarding the interest rate, Maroon said there is no interest charge for the first year. From the second to the third year, there is a 1% interest charge per month based on diminishing balance.
“Napakaganda nito. Sa first year ng monthly amortization, wala talagang i-cha-charge sa inyo. At saka itong loan namin, hindi kami nag-cha-charge ng processing fee or any charges. Ang mababawas lang sa inyong loan amount is yung doc stamp,” she said.
(“This is good. In the first year of monthly amortization, there is no charge. There are also no processing charges. The only deduction from the loan amount is the doc stamp.”)
To avail themselves of the ERF, MSMEs need to provide a government-issued ID; barangay certification for loans of not more than P100,000; barangay micro business enterprise certificate or mayor’s permit for loans of more than P100,000; photos of business operations, inventories and fixed assets; and corporate documents for corporations.
Also required are bank or e-money account details, which must be under the name of the sole proprietor, partnership, or corporation.
No documents will be required from existing SBCorp. borrowers with good repayment status, said Maroon.
To be eligible for the loan, interested parties must have a business track record of at least one year as evidenced by business permits.
Aside from the ERF program, SBCorp. also offers other loan and financing programs, one of which is RISE UP, a program that aims to sustain the gains of MSMEs that survived the past two years of crisis by providing multipurpose loans that have soft terms and are easily accessible.
SB Corp. is accepting applications through the loan portal at https://brs.sbcorp.ph.
