Bohol MSMEs apply for DTI restart fund

Published June 24, 2020, 12:00 AM

by manilabulletin_admin

By Minerva Newman

CEBU CITY – More than 150 micro, small and medium entrepreneurs (MSMEs) in Bohol have applied for loans through the coronavirus disease (COVID-19) Assistance to Restart Enterprises (CARES) program of the Small Business Corporation (SBCorp), which has a P1-billion portfolio to restart businesses that were affected by the pandemic. SBCorp. Is an attached agency of the Department of Trade and Industry (DTI).

According to DTI Pondo sa Pagbabago at Pag-aasenso (P3) Coordinator Veronee Tocmo, the DTI CARES program was an enterprise rehabilitation financing facility that is available for MSMEs with at least one year of continuous operation prior to March 2020, and whose businesses suffered drastic reduction in sales due to the COVID-19 pandemic.

Tocmo said that micro enterprises with capitalization and asset size of not more than P3 million may borrow P10,000 up to P200,000, while small enterprises with asset size of not more than P10 million may borrow a higher loan amount, but not to exceed P500,000.

“These MSMEs applying for the loan must have a permanent business address, disqualifying ambulant vendors and other mobile services businesses. It is just a temporary stimulus for businesses as part of government’s assistance to micro entrepreneurs during COVID times,” Tocmo added.

SBCorp said the loan may be used to help the enterprise stabilize or recover from its losses, such as updating of loan amortizations for vehicle loans or other fixed asset loans of the business; inventory replacement for damaged perishable stocks, and as a working capital replacement to restart the business.

Tocmo bared that the government pegged the DTI CARES loan at zero interest payable in two years, and a minimal processing charge and a six-month grace period on payments, or until such time that the economic crisis has passed, to assist the MSMEs in putting up restart mechanisms for recovery.

The DTI announced the loan offer in April and started accepting applications, which would only need a valid business registration, mayor’s or barangay permit, government issued ID of the borrower and a picture of the business venture.

According to Tocmo the moment that the P1-billion fund is saturated, DTI will suspend accepting loan applications until the government can find other fund sources.