Representative Lucy Torres-Gomez (4th District, Leyte) on Monday pressed the national government to provide low-interest loans to owners of small and medium businesses to use as working capital so they can grow or expand their investments.

Torres-Gomez said doing so would help them withstand the economic instability caused by the COVID-19 pandemic as the country’s economy remains weak due to the harsh impact of the lockdowns to livelihood and employment.

“The Executive, through the initiative of lawmakers, can provide loans to these SMEs to help keep them afloat during these challenging times,” Torres-Gomez said in a statement.

“This can be included in the (proposed) 2022 national budget, which budget managers are still finalizing,” she said.

The lawmaker lamented small businesses do not have access to resources most established businesses have. While they are vital to the country’s economy, many of them struggle to find capital funding.

“An SME loan is a credit facility that can be extremely useful for SMEs to realize their full potential through appropriate funding. An SME loan would allow small business owners to ramp up their inventories even when cash flow is delayed,” she pointed out.

She said the government cannot afford to lose sight of SMEs and should look for ways to assist them.

She further explained small business loans are more practical because these usually have low documentation requirements, are collateral-free, have low-interest rates, affordable, and features flexible repayment scheme.

“Our government leaders cannot lose sight of business rookies. There should always be ways to look out for everyone’s needs,” she pointed out.

“Like low-income families who seek government support to survive the ruthless effects of this national health emergency, small and medium business investors also want the backing of their leaders to endure the economic blows of COVID-19,” the solon stressed.