Small Business Corporation (SBCorp), the financing arm of the Department of Trade and Industry (DTI) catering largely to micro small and medium enterprises (MSMEs), is seeking partnership with large fast-moving consumer goods (FMCG) companies, specifically those involved in food manufacturing, supply, or distribution, on its new financing program.
The loan product scheme called STAPLES or Sustaining Trade Access to Primary Food and Link to Enterprises aims to keep food suppliers afloat, and maintain food sufficiency and affordability in the country.
At the same time, MSMEs in the food supply chain will also be able to retain or rehire their employees, and serve their communities when they are able to continue operating their businesses.
“We invite large food manufacturers to work together with SBCorp in implementing this new program and help foster the restart, strengthening, and growth of the MSMEs in the food supply chain,” said Ma. Luna E. Cacanando, President and CEO of SBCorp.
STAPLES is expected to be launched this August. The mechanics of the partnership are still being finalized. Initially though, MSMEs must be also be a partner or as a retailer of the FMCG.
Under the STAPLES loan product, SBCorp accredits an FMCG as its partner.
To qualify, FMCG food manufacturers must be large enterprises; have a nationwide network of at least 20 distributors and at least 100,000 thousand sari-sari stores digitized into their salesforce automation system; and have at least P5 billion annual sales.
The accredited partner will sign a memorandum of agreement with SBCorp to include the marketing of the program to their channels of distribution and the sharing of information relative to the MSMEs in their supply chain.
Through STAPLES, MSMEs that are linked to the supply, production, distribution and retailing of a large FMCG company in food manufacturing can replenish their working capital and fund other business needs.
“We envision for our MSMEs to be free from the burden of scurrying for affordable, easy to access loans for the sustenance of their livelihood. The STAPLES program will allow them to access much needed funds and keep the retail food businesses running through the help of our accredited FMCG partners,” said Cacanando.
SBCorp is the program implementer of the Bayanihan CARES (COVID-19 Assistance to Restart Enterprises), which makes P8.08 billion available for MSMEs, tourism businesses, cooperatives, hospitals, and repatriated or displaced Overseas Filipino Workers affected by COVID-19 pandemic. To date, SBCorp has approved 32,600 loan applications. These correspond to a total loan amount of P4.98 billion.