The Publishers Association of the Philippines, Inc. (PAPI), largely composed of small provincial newspapers, has sought financial help from the government due to dwindling advertising revenues during the quarantine period.

Communications Secretary Martin Andar said during a Malacañang press conference that he had already relayed to Trade and Industry Secretary Ramon M. Lopez the publishers’ request for financial assistance.

Based on its website, PAPI is the country’s largest media fraternity composed of publishers of about 500 community newspapers in the regions and provinces, and a few national publications as regular members.

Its membership is further swelled by practicing community journalists, both print, broadcast and online, mostly from the regions and provinces, as Associate Members.

PAPI said that its affiliate publications have an estimated total print circulation of over 2,000,000 copies every week. Provincial radio broadcasters and regional TV anchors, as well as cable TV hosts normally read the contents of these community papers on air.

Countryside communities hardly reached by Metro Manila publications have remained as exclusive turfs of PAPI-affiliated media instruments.

According to Andanar, this group of publishers would like to get access to the Small Business Corporation (SB Corp) loan facility for mciro, small, and medium enterprises as advertising revenues slowed down during this period. They, too, have workers who have been displaced because of their financial difficulty.

Lopez said that publishers are covered in the SB Corp. loan facility. All they have to produce is a one-year track record of operation.

For workers, Lopez said they can also go to the Social Security System and other government agencies for assistance.

COVID-19 Assistance to Restart Enterprises (CARES) Program currently has ₱1 billion loan facility for MSMEs, but Lopez said they are tapping other sources to augment the fund to P3.5 billion because loan applications have piled up already.

According to Lopez, there are already 22,932 MSME loans applications filed with total loan amount of over ₱2 billion.

To augment the SB Corp. kitty, Lopez said DTI will divert funds from the ₱3 portfolio and the additional borrowings from the whole fund of Land Bank of the Philippines and the Development Bank of the Philippines.

There is also a pending stimulus package being crafted in the legislative branch that may include financing for the MSME sector.

Of the 22,932 applications, SB Corp has recommended the approval of 1,153 worth ₱97.7 million. This is on top of the 1,175 applications worth ₱100-million approved earlier.

The approved loans are set for release by July 30. The CARES Program is part of the administration’s economic relief program for micro and small enterprises affected by the COVID-19 pandemic.

Under the program, micro and small enterprises operating for at least a year prior to March 16, 2020 and assets not exceeding ₱15 million can avail of the program. The loan shall be used to help the enterprise stabilize or recover from its losses.

Specifically, the following purposes are qualified:

1) Updating of loan amortizations for vehicle loans or other fixed asset loans of the business;
2) Inventory replacement for perishable stocks damaged; and
3) Working capital replacement to restart the business.

Micro enterprises with asset size of not more than ₱3 million may borrow an amount ranging from ₱10,000 to ₱200,000 while small enterprises with asset size of not more than ₱15 million may borrow loan amount not exceeding ₱500,000.

Interest rate shall be at 0.5% per month (discounted basis); and grace period of 6 months on principal payments. Loan applicants may visit the SB Corporation’s website www.sbgfc. org.ph for the application form and submit the accomplished form and requirements to the nearest SB Corporation office or Negosyo Center in areas under GCQ and modified GCQ.