Small Business Corporation (SBCorp), the micro financing arm of the government under the Department of Trade and Industry, has closed its regular Bayanihan CARES (COVID-19 Assistance to Restart Enterprises) having fully lent out the more than P6-billion fund under the program.
In its advisory, SBCorp said the regular Bayanihan CARES Program was closed effective Jan. 31, 2022. SBCorp, however, said it will continue its other special CARES financing programs for tourism, OFWs, and retailers/traders.
In the two-year run of the program, SB Corp said it was able to assist a total of 40,243 borrowers with average loan amount of P169,613 for total approved loans of P6,822,572,634.
Of the total amount, P6.373 billion had been lent out for the regular Bayanihan CARES with 38,100 borrowers.
SBCorp. also reported that it has approved P276.762 million for Bayanihan TRAVEL (Tourism Rehabilitation and Vitalization of Enterprises and Livelihood) program or for those tourism-related establishments.
A total of 649 MSMEs had also availed of P117.684 million to settle the mandatory 13th month pay of their workers.
SBCorp also approved P50.830 million loans to 903 Bayanihan Heroes or for displaced OFWs and P3.880 million for 24 borrowers under the STAPLES program or for the retail stores, mini-groceries and small dealers in the consumer goods supply chain.
SBCorp data showed that majority or 85.31 percent of borrowers were micro enterprises, 11.43 percent small, and 3.26 percent medium.
Of the total borrowers, 46.6 percent are engaged in retail trading, 32.6 percent in services, 8.1 percent agri-based, 7 percent manufacturing, and 4.6 percent tourism.
Notably, there were more women borrowers at 61 percent and only 39 percent male.
In terms of borrowers’ location, Region IV-A has the most number of borrowers accounting for 12.04 percent of total, followed by the National Capital Region with 10.87 percent, Region IV-B with 8.83 percent, Region III with 8.62 percent, and Regional VI with 8.25 percent.
In a statement, SBCorp said it will continue to accept applications for special programs intended for specific segments such as CARES for TRAVEL, HEROES, and STAPLES.
The CARES for TRAVEL Program, in particular, still has substantial funds available for lending due to the slow recovery of the travel sector.
SBCorp has also expanded the CARES for TRAVEL Program to include all tourism-related enterprises regardless of accreditation with the Department of Tourism.
Secondary tourism enterprises and support services such as transportation, catering, events organizing, souvenir shops and the like may now apply for a loan.
Bayanihan CARES is an interest-free and collateral-free financing program that aims to assist MSMEs recover from the adverse effects of the pandemic. Borrower MSMEs will only need to pay a one-time service fee, which is set at a maximum of eight percent for a 4-year loan term.