DTI unveils P 1-B CARES loan program for micro, small firms

Qualified micro and small enterprises in areas under general community quarantine can now apply for loans under the government’s P1-billion assistance program, said the Department of Trade and Industry (DTI). This will be done through DTI’s attached agency Small Business Corp., which started accepting applications for the COVID-19 Assistance to Restart Enterprises (CARES) program on May 18.

Under the program that was devised to help companies adversely affected by quarantine measures, micro and small enterprises operating for at least a year prior to March 16 and with an asset size not exceeding P15 million can secure loans under the program.

Micro enterprises with asset size of not more than P3 million may borrow from P10,000 to P200,000 while small enterprises with an asset size of not more than P15 million may borrow a maximum of P500,000.The loan shall be used to help the enterprise stabilize or recover from its losses, the statement read.

Specifically, micro and small enterprises can use the loans for the following purposes: updating 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 DTI said the interest rate would be 0.5 percent a month with a grace period of six months on principal payments. INQ