Small Business Corporation or SBCorp., the government’s micro financing arm, has released more than P2 billion or 20 percent yet of the P10 billion allocation under the Bayanihan to Recover as One Act or Bayanihan 2 for the micro small and medium enterprises (MSMEs) as of the first week of February this year.
SB Corp., which is under the Department of Trade and Industry, said it has approved a total of 21,358 loans amounting to P2,268,894,496 for its COVID-19 Assistance to Restart Enterprises (CARES) Program.
Of these loan applications, SB Corp. said 19,601 loans amounting P2,000,578,442.11 have been released from the CARES programs as of February 2 this year.
When the Bayanihan to Recover as One Act or Republic Act 11494 signed into law in October last year, a P10 billion fund was allotted to SBCorp to expand its CARES Program.
Also to be made available under this fund is the CARES for Tourism Rehabilitation and Vitalization of Enterprises and Livelihood (CARES for TRAVEL) Program which is allotted P6 billion out of the total fund.
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 Bureau of Internal Revenue-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.