The Small Business Corp. (SB Corp.) has received roughly PHP10 billion worth of loan applications for its various micro financing programs.
Robert C. Bastillo, SB Corp. president and CEO, said Tuesday during the official launch of E-Transport Loan, that they are still evaluating the loan applications for the various micro financing programs for OFWs, women enterprises, exports, and tourism – with fund allocation of PHP2 billion.
SB Corp., the government’s micro financing arm under the Department of Trade and Industry, has PHP12 billion in funding for these loan facilities, which could be augmented by fund allocation from the Department of Budget and Management. So far, SB Corp. has already released PHP500 million, said Bastillo..
Based on their experience, they normally approved at least 50 percent of total loan applications.
During the launch of the E-Transport Loan facility, Trade and Industry Secretary Cristina A. Roque said that the latest financing program is open to small transport operators and drivers who hold business licenses and wish to transition to electric vehicles (EVs).
Loanable amount under this facility is up to PHP1.5 million per vehicle, with a maximum limit of PHP3 million per borrower. The loan is payable over five years with a one year grace period. Interest rate is pegged at 6.5 per annum.
Eligible borrowers include transport network vehicle service (TNVS) drivers and operators, provided the loan applicant holds a valid and current Land Transportation, Franchising, and Regulatory Board authority, including a Certificate of Public Convenience, Provisional Authority, or equivalent permit covering the unit to be financed.
A borrower must be duly registered as a sole proprietor, partnership, or corporation with appropriate government agencies.
They may also be affiliated with transport network companies (TNC), provided that the loan is extended to the individual operator or registered fleet entity, and not to the TNC.
The driver-operator or fleet operator shall be the direct borrower and obligor. TNCs shall not be eligible as borrowers under the program.
“Now is the time to shift to electric vehicles. Our goal is simple: to lower operating cost and shift to a predictable and significantly lower cost, and cleaner air,” said Roque.
“We have funding so take advantage of it,” said Roque, encouraging small transport operators and drivers to participate in the program.
