SB Corp allocates P1.5B to small businesses affected by the ECQ
The government’s financing arm, Small Business Corporation, has announced the availability of P1.5 billion loan facility to micro, small and medium enterprises (MSMEs) affected by the Enhanced Community Quarantine (ECQ) due to COVID-19 pandemic. The SB Corporation is an attached agency of the Department of Trade and Industry (DTI).
At an e-forum on MSME COVID 19 FUNDING: Roles of Government and Private Sector, co-organized by the Philippine Chamber of Commerce and Industry (PCCI), SB Corporation President Luna Cacanando said that the P1.5B Enterprise Rehabilitation Fund (ERF) is available to business enterprises to assist in their rehabilitation and recovery once the ECQ is lifted. The loan facility will only incur 0.5 percent interest rate and a 6-month (flexible) grace period.
However, Cacanando clarified that prioritization in the release of the fund will be given to enterprises in the essential industries such as food services, agriculture and manufacturing.
She said the agency will initially pilot test the ERF loan applications in Luzon and eventually will be rolled-out nationwide by June this year.
Cacanando added that the agency is now doing internal preparations and finalizing the details of the loan applications. They will be partnering with Negosyo Centers in accepting the loan allocations for the small enterprises.
She also recognized the importance of innovation as key for MSMEs to respond to the current situation. She said that for updates on the ERF processing, companies are encouraged to regularly visit their website and official facebook page for updates.
Meanwhile, SB Corp earlier advised its borrowers that it is implementing a one-month moratorium on loan payments while ECQ is in effect. ###