Bagong Henerasyon (BH) Party-list is helping introduce an alternative to the burdensome 5-6 lending system as a way to give local micro, small and medium enterprises (MSMEs) the financial boost they need.

This, after BH Party-list partnered with the Department of Trade and Industry’s (DTI) Small Business Corporation (SB Corp) to expand access to affordable loans for small businesses and offer low-interest, collateral-free financing to help Filipinos break free from the abusive “5-6” lending cycle.

The 5-6 system—where informal lenders charge excessive interest rates, often up to 20 percent—has burdened countless MSMEs, leaving them trapped in debt.

SB Corp, a government financial institution mandated to provide financing to MSMEs, is stepping in to provide a fair and sustainable alternative to this.

Under its program, entrepreneurs can borrow ₱30,000 to ₱3 million, payable for up to three years, with only 1 percent annual interest and no collateral required.

Applications will be accepted during the Business Loan Roadshow on Nov. 11 at the West Triangle Multipurpose Building in Quezon City.

“This is the real alternative to 5-6 lending — fair, humane and pro-Filipino,” said BH Party-list Rep. Robert Nazal.

“We’re giving small business owners the chance to grow without falling into debt traps,” he added.

Applicants only need to present a government-issued ID, a business permit (barangay certification, Barangay Micro Business Enterprise certificate, or mayor’s permit), and proof of a bank account.

For loans above ₱100,000, postdated checks are required. Pre-assessments are open until Nov. 8, and only the first 150 applicants will be prioritized.

“This partnership gives entrepreneurs access to capital that empowers, not exploits,” said former BH Rep. Bernadette Herrera, a long-time MSME advocate.

“Financing should be a bridge to growth, not a burden that keeps people in poverty,” she stressed.

Herrera said the initiative reflects BH’s core mission of building an economy that includes everyone, not just the privileged few.

She noted that MSMEs make up more than 99 percent of Philippine businesses and are vital to job creation and local development. “When we help small businesses thrive, we strengthen families, communities and the national economy."

Nazal urged aspiring entrepreneurs to take part in the roadshow and secure fair financing for their ventures.

“This is not just a loan program, it’s a lifeline for every Filipino who dares to dream bigger,” he said.