The Philippine Chamber of Commerce and Industry (PCCI) and Small Business Corporation (SB Corp) recently signed an agreement to roll out a PHP7-billion loan facility program aimed at extending financial aid to MSMEs affected by the increased fuel prices.
PCCI President Perry Ferrer said that the partnership essentially seeks to make SB Corporations loan
products and services accessible to MSMEs nationwide. Under the agreement, the PCCI will serve as a conduit in processing and validating the application requirements, with local chamber of commerce and industry (LCCI) chapters designated to accept and endorse applications from members in good standing.
“This undertaking was initiated by Trade Secretary Roque through the SB Corp. to extend loan assistance to MSMEs. We have secured a P7B loan project with SB Corporation for enterprises that are in three priority sectors – women-led, export development, and returning OFWs,” Ferrer said, adding that the loan program
may offer a grace period of up to 12 months and could require no collateral.
Ferrer said that eligible MSMEs may avail of various of loan programs under the RISE UP (Resilient, Innovative, Sustainable Enterprises) initiative. Under this program, loanable amount ranges from PHP30 million to PHP50 million.
“The loan program is not only for PCCI. We are here to help facilitate the screening and processing of documents, making it easier for SB Corporation to accept and confirm applications, “Ferrer added.
Under the agreement, the qualified borrows must a) at least 60 percent Filipino-owned for partnerships and corporation, b) have an asset size not exceeding P100 million (exclusive of land), c) with a good track
record of at least one year, and d) with no past due account under SB Corp Program and no major negative credit ratings.
Ferrer said that the PCCI national will oversee the validation of documents submitted by the LCCI chapters
before they are forwarded to SB Corporation for inclusion in its database.
“The private sector and government need to work together to find innovative solutions to help our MSMEs, widely recognized as the backbone of our economy. Aside from fuel cost reduction measures, we are also working on other solutions to help MSMEs lessen the burden,” the PCCI chief added.
