UniTeam Senate bet Jinggoy Estrada has proposed a loan similar to the United States’ (US) “Payment Protection Program,” (PPP) a loan to assist micro, small, and medium enterprises (MSMEs) in paying their employees, rent, and utilities amid the coronavirus (COVID-19) pandemic.
“Malaki ang maitutulong ng PPP program hindi lamang sa maliliit na negosyo. Higit dito, masisiguro natin na ang mga manggagawa ay patuloy na magtatrabaho at mababayaran ng sweldo at mga akmang benepisyo. (The PPP program will be of great help not only to small businesses. We can guarantee that our workers will continue to be employed and be paid their wages and correct benefits),” said Estrada in a press statement on Saturday, Feb. 26.
Citing the Department of Trade and Industry (DTI), Estrada says that about 10 percent of MSMEs have been closed since November 2021 hence the urgent need for a local version of the PPP.
“The sheer number of Filipino workers facing the destructive economic effects of COVID-19 provides us a strong argument to pursue the PPP and other programs that would help them,” he added.
According to the DTI, MSMEs comprise 99.51 percent of all operating businesses in the Philippines, specifically 952,969 MSMEs out of 957,620 total businesses.
In total, about 5,380,815 or 62.66 percent of the country’s workforce are employed by MSMEs.
Furthermore, he believes that the DTI’s promise to grant MSME financial aid through the 2022 budget and unspent funds from the now-lapsed Bayanihan II are not sufficient to assist MSMEs.
He also adds that his proposed loan would have certain requirements, one of which dictates that the loan must be spent primarily on supplementing employees’ salaries.
The now-discontinued PPP was a loan backed by the US Small Business Administration (SBA) which offered funds to MSMEs for use on payroll, mortgage, rent, and utilities. The loan could also have been forgiven if at least 60 percent was spent on payroll costs.
Estrada is running for a Senate comeback in the 2022 polls under the UniTeam banner of presidential candidate Ferdinand “Bongbong” Marcos, Jr. and running mate Davao City Mayor Sara Duterte-Carpio.