Senator Sherwin Gatchalian on Tuesday called on the Department of Trade and Industry (DTI) to boost its information campaign on the availability of soft loans and financial grant programs to micro, small and medium enterprises (MSMEs) that were affected by Typhoon Odette.

Gatchalian said doing so would help prevent loan sharks and unscrupulous online lending schemes from targeting small business owners.

The senator pointed out state-sponsored financial grants to MSMEs provide longer grace period for repayment terms and lower interest rates.

“Bago pa samantalahin o mahikayat ng mga iligal na nagpapautang ang sitwasyon ng mga pinadapang negosyo ng bagyong Odette, dapat nating ipaalala sa mga negosyong ito lalo na ang mga MSMEs na may pondo at programa ang gobyerno para sa kanila (Before these illegal lenders take advantage of the situation and dupe businesses that were negatively impacted by typhoon Odette, we should remind businesses, especially these MSMEs that there are government funds and programs available for them),” Gatchalian said in a statement.

“Ang importante ngayon ay magkaroon sila ng pang kapital upang makabalik sila uli sa pagnenegosyo nang sa gayon ay maisalba ang mga trabaho at mapigilan din ang posibleng pagtaas ng presyo ng mga pangunahing bilihin (What is important right now is that they get the capital that they need to resurrect their businesses and therefore, save jobs and prevent the possible surge in the prices of basic commodities),” he added.

Gatchalian said MSMEs can avail of collateral-free loans through Small Business (SB) Corp., the micro-lending arm of the government under the DTI.

He said through the DTI’s Pondo sa Pagbabago at Pag-asenso (P3) Program, micro enterprises with an asset size not exceeding P3-million can borrow up to P200,000 with a 2.5 percent interest rate per month.

Also under the P3 Program is the Enterprise Rehabilitation Facility (ERF) that covers all natural and man-made calamities that adversely affect microbusinesses in vulnerable areas, the lawmaker stressed.

He said this program is a quick response for efficient mobilization of loan funds for immediate recovery. Areas and sectors to be financed must be declared under the state of calamity or reported to be severely devastated.

Gatchalian said that through government initiatives like these, struggling MSMEs have an option instead of borrowing from informal lenders or the 5-6 money lenders.