The Department of Trade and Industry’s (DTI) financing arm, Small Business (SB) Corp., said Wednesday it has approved P2.27 billion worth of loans under the Covid-19 Assistance to Restart Enterprises (CARES) program.
The loans were applied by 21,358 micro, small, and medium enterprises (MSMEs), and P2 billion in loans were already released to 19,601 applicants.
The DTI started to roll out the CARES program in May 2020 to help MSMEs to recover from their losses due to lockdowns amid the pandemic and help them restart their business operations.
Under the Bayanihan 2, SB Corp. secured a P10-billion funding to continue the roll out of the zero-interest loan program for MSMEs through CARES 2 program.
CARES 2 program expanded the loan to medium enterprises.
Under this program, SB Corp. can provide loan amounting to P10,000 for businesses with minimum asset size P50,000; P20,000 loan for businesses with P100,000 minimum asset; P40,000 for those with a minimum asset of P200,000; P60,000 for those with a minimum asset of P300,000; P80,000 for those with a minimum asset of P400,000; and P100,000 for businesses with minimum asset of P500,000.
SB Corp. can extend P150,000 worth of loans to businesses with assets valued at P750,000 and P1 million worth of annual sales.
Those with a minimum asset of P1 million and annual sales of P1.5 million can apply for loans worth PHP200,000.DTI’s financing arm does not collect interest from loans but instead charges service fees of 4 percent for loans with a one-year term, 6 percent for two-year loans, and 7.5 percent for three-year loans. SOVEREIGNPH