SBCorp. lends P19 B to MSMEs as of July

Published August 16, 2022, 4:48 PM

by Bernie Cahiles-Magkilat

SB Corp., the government’s micro financing institution, has approved nearly P19 billion loans to micro, small and medium enterprises (MSMEs) as of July 30 this year.

SBCorp. data showed that the biggest loan approvals went to the P3 (Pondo sa Pagbabago at Pag-asenso) Program with total loans released of P11.22 billion to 264,457 MSME beneficiaries. The P3 program lends out to micro enterprises borrowers with asset size not exceeding P3.0M at not more than 2.5 percent per month all-in interest rate and service charges.

Another big loan approvals went to the Bayanihan CARES program with total approved financing of P6.73 billion, benefitting P752 MSMEs.

It could be recalled that the Bayanihan to Recover as One Act or Bayanihan 2 has directed SB Corporation to expand its existing loan programs for MSMEs, cooperatives, hospitals, tourism, and OFWs affected by Covid-19 pandemic and by other socio-economic reversals. An P8.08 billion funding thru equity infusion was allocated to SB Corporation under the Bayanihan 2 Act, and with this the Bayanihan CARES was launched in October 2020.

Bayanihan CARES is an interest-free and collateral-free financing program that aims to assist MSMEs recover from the adverse effects of the pandemic. The borrower MSMEs will only need to pay a one-time service fee at a maximum of eight percent for a 4-year loan term.

SBCorp. also approved P337.21 million loans to 752 enterprises, and P252.44 million under the Enterprise Program for MSMEs affected by Typhoon Odette with 3,097 beneficiaries.

A total of P122.37 million loans had been approved to 668 enterprises for the 13th Month loan program. This loan facility aims to ensure that MSMEs affected by the economic downturn due to the pandemic are able to give the mandatory 13th month pay to their workers.

A total of P108.68 million for RISE UP program with total beneficiaries of 993 MSMEs were also approved. RISE UP is a loan program that aims to sustain the gains of MSMEs that have survived the past two years of crisis, by providing multi-purpose loans that have soft terms and can be easily accessed. The RISE UP Multi-purpose Loan caters multi-sectoral MSMEs inclusing existing SBCorp borrowers.

A total P3.971 million was approved for STAPLES (Sustaining Trade Access to Primary Food and Link to Enterprises) program benefitting 993 MSMEs. The loan product of SBCorp aims to keep food suppliers afloat, and maintain food sufficiency and affordability in the country.

Another P56.15 million went to 1,018 beneficiaries of the HEROES loan program. HEROES (Helping the Economy Recover thru OFW Enterprise Start-ups (HEROES) is a program of the national government that provides an opportunity for displaced, repatriated, or returning OFWs to rebuild their lives here in the Philippines by helping them establish their start-up businesses.