Small Business (SB) Corp. said on Friday that small businesses that want to restart operations can still apply for interest-free, unsecured government loans.
“To date, SB Corp. approved 31,700 loan applications for MSMEs (micro, small and medium enterprises). These correspond to a total loan amount of 4.84 billion pesos, ”said SB Corp. in a press release.
He said the request can be processed online by creating an account at www.BayanihanCARES.ph.
Depending on their sales and assets before the pandemic, qualified applicants can apply for loans ranging from 10,000 pesos to 5 million pesos.
“These loans are repayable up to a maximum of four years, including a maximum grace period of 12 months for non-tourism MSMEs, or a maximum grace period of 24 months for tourism MSMEs accredited by the Ministry of Tourism or registered under the name Barangay Micro. Business enterprises, ”said SB Corp.
“Successful loan applicants will only have to pay a one-time service charge, set at a maximum of 8% for a four-year loan term. Lower service charges apply with shorter loan terms, ”he added.
SB Corp. Chairman and CEO Ma. Luna E. Cacanando noted that he tries not to duplicate what the major MSME finance companies are doing.
“We are not competing with what is already working in the market. What we need to do is close the gaps for small businesses that banks and credit companies do not yet find attractive to finance relative to their profit targets and cost management thresholds. We are developing and operating our funding programs for MSMEs in this direction, ”she said. – Arjay L. Balinbin