State-owned Development Bank of the Philippines (DBP) has released P8.5 billion to help rehabilitate public and private companies affected by the prolonged-pandemic.
In the first six months of the year, DBP said the lender has assisted 90 firms under its Rehabilitation Support Program on Severe Events (RESPONSE) and its sub-program DBP RESPONSE to accelerate Micro-Small and Medium Enterprises (MSME) Recovery.
“The DBP RESPONSE will continue to be the bank’s centerpiece program to encourage private and public institutions to recover and resume operations,” Emmanuel G. Herbosa, DBP president and chief executive officer said.
The program also provides rehabilitation financing to DBP and non-DBP borrowers stricken by calamities or force majeure events, including typhoons, floods, drought, pest and disease infestations, among others.
So far, 30 borrowers secured almost P4.8-billion loans under the DBP RESPONSE program. Majority of these borrowers are located in Luzon and engaged in the accommodation and food service industries, wholesale and retail trade, public administration and defense, among others.
The program caters to private institutions including enterprises, corporations, cooperatives, associations, schools, hospitals, and financial institutions as well as local government units (LGUs) and government corporations.
“DBP RESPONSE offers a longer repayment period of up to 15 years, inclusive of a three-year grace period, for public borrowers and up to 10 years with a three-year grace period for private institutions,” Herbosa said.
The DBP RESPONSE – MSME RECOVERY sub-program offers low interest and flexible terms to duly registered medium enterprises, including start-ups and cooperatives engaged in agri-fishery and non-essential businesses.
It also covers wholesale lending to rural banks, thrift banks, microfinance-oriented banks, and non-bank financial institutions including cooperatives and microfinance institutions, for relending to MSME borrowers.
A total of 60 borrowers have availed of P3.7-billion under the DBP RESPONSE – MSME RECOVERY for 24 projects located in Mindanao, 21 in the Visayas, and 15 in Luzon.
The borrowers are engaged in wholesale and retail trade; financial and insurance activities; agriculture, forestry and fishing; as well as in the accommodation and food service industries.
Local businesses, LGUs, and other government entities should avail of the opportunity to future-proof their operations, according to Herbosa.
“DBP provides strategic assistance to our development partners in the business community and to fellow government institutions to mitigate the impact of future crisis situations,” he added.