With the Bayanihan to Recover as One Act (RA 11494) signed into law, a P10- billion fund has been allotted to The Small Business Corporation (SBCorp), the government’s micro financing arm.
SBCorp announced it will start rolling out on Monday, October 26, the P10-billion fund to ensure the continued employment of micro, small and medium enterprises (MSMEs).
In a statement, SBCorp said the new fund allocated has expanded its existing COVID-19 Assistance to Restart Enterprises (CARES) Program. The P10 billion fund includes the P6 billion fund allocated for CARES Tourism Rehabilitation and Vitalization of Enterprises and Livelihood (CARES for TRAVEL) Program.
SBCorp will start accepting applications for the Bayanihan CARES Program on October 26, 2020 to help MSMEs recover and ensure that workers keep their jobs.
Based on the guidelines, MSMEs with BIR-filed financial statements for 2018 or 2019 with no major negative credit track record are assured of a loan under the program.
MSME applicants who cannot submit a BIR-filed FS will just submit their barangay or municipal business permits, photos or videos of business assets, and proof of sales for certain loan sizes.
Loan amount to be granted will be based on the MSME applicant’s asset size and annual sales. However, additional limits to the loan size will be observed to ensure more MSMEs will benefit from the program.
Loans will have a one-time front-end service fee ranging from 4% to 8% depending on the number of years the applicant will pay.
Loan term can be up to four years and grace period up to six months. Certain industries such as tourism can be granted a longer grace period of up to 12 months.
Bayanihan CARES applications may be submitted through the SB Corp’s online loan application system at https://brs.sbgfc.org.ph starting Monday, October 26, 2020. MSMEs may also visit the SBCorp Website at www.sbgfc.org.ph or call 8651-3333.