By Genalyn Kabiling
In line with its goal of inclusive growth and job generation, the government has set aside P2 billion to help small entrepreneurs start their own businesses.
Presidential Spokesman Harry Roque said the funds will be allotted for the Department of Trade and Industry’s (DTI) micro-financing program as well as shared service facilities project for the development of micro, small and medium enterprises.
“We have also allotted P2 billion for MSMEs development,” Roque said in a Palace press briefing.
“These programs – Pondo sa Pagbabago at Pag-asenso (P3) micro loan program and Shared Service Facilities- Equipment project – will each receive P1 billion,” he added.
Roque said the government aims to provide affordable micro-financing for MSMEs and reduce reliance on the “5-6” money lending scheme.
The trade department recently announced plans to pilot the micro-financing program in Mindoro, Sarangani, and Leyte this month. Loans can range between P5,000 to P300,000 with maximum interest rate of 26 percent per annum with no collateral requirement.
The shared service facilities project, on the other hand, aims to provide MSMEs with machinery, equipment, tools, systems, skills and knowledge under a shared system
Last year, President Rodrigo Duterte ordered a crackdown on 5-6 money lending scheme preying on small entrepreneurs. He wanted the foreigners engaged in such usurious business arrested and deported.