CEBU CITY—With the adverse impact the coronavirus disease 2019 (Covid-19) outbreak affecting micro and small enterprises, the Small Business Corporation (SBC) will be setting up a loan facility to help them recover.
In a statement posted on its website, the SBC, under the guidance of the Department of Trade and Industry (DTI), will establish the P1-billion Enterprise Rehabilitation Financing Facility under the Pondo sa Pagbabago at Pag-asenso (P3-ERF).
The SBC will implement the facility after the national government and the respective local government units lift the community quarantine declarations.
The ERF loan fund will be made available to 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.
Micro enterprises with asset size of not more than P3 million can borrow P10,000 up to P200.000.
On the other hand, small enterprises with asset size of not more than P10 million can borrow a higher loan amount but not to exceed P500,000.
SBC clarified that the loan should be used to help the enterprise stabilize or recover from its losses.
The following purposes are qualified:
- Updating of loan amortizations for vehicle loans or other fixed asset loans of the business;
- Inventory replacement for perishable stocks damaged; and,
- Working capital replacement to restart the business
The interest rate will be at 0.5% per month (discounted basis); and the grace period on payments shall be given until such time that the economic crisis has abated.
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 coronavirus epidemic. /bmjo