Micro, small and medium enterprises (MSMEs) affected by the coronavirus disease 2019 (Covid-19) pandemic can apply for a loan under the Small Business Corporation (SB Corp.) Covid-19 Assistance to Restart Enterprises (CARES) Program starting on October 26 for the recovery of their business and to ensure that their workers are able to keep their jobs.
“Under the Bayanihan to Recover as One Act or Republic Act 11494 signed into law, a P10-billion fund has been allotted for the expanded CARES program. Six billion pesos (P6 bilion) of the fund is available for the CARES for Tourism Rehabilitation and Vitalization of Enterprises and Livelihood (CARES for TRAVEL) Program,” SB Corp. said in a statement.
The loan term can be up to four years and with a grace period of up to six months. Certain industries such as tourism can be granted a longer grace period of up to 12 months.
SB Corp. said MSMEs with Bureau of Internal Revenue (BIR)-filed financial statements (FS) for 2018 or 2019 with no major negative credit track record are assured of a loan under the program. MSME applicants who cannot submit a BIR-filed FS will just submit their barangay or municipal business permits, photos or videos of business assets, and proof of sales for certain loan sizes.
The loan amount to be granted will be based on the MSME applicant’s asset size and annual sales. However, additional limits to the loan size will be observed to ensure more MSMEs will benefit from the program.
Loans will have a one-time front-end service fee ranging from 4 to 8 percent depending on the number of years the applicant will pay.
Bayanihan CARES applications may be submitted through the SB Corp’s online loan application system at https://brs.sbgfc.org.ph starting Monday (October 26, 2020). (sovereignph.com)