Micro and small businesses in the city that want to have a fresh capital to recover from the heavy impact of the stringent community quarantine measures can still avail of the financial assistance set aside by the city for the city economy to bounce back.
City Budget officer Leticia O. Clemente said that since the city’s Baguio Revitalization Actions for a Vibrant Economy–Economic Stimulus Package (BRAVE-ESP) was rolled out last month, only 31 of the more than 100 applications for financial assistance had been approved by the Small Business Corporation (SBC) while 38 applications were denied because of bad standing, among other reasons.
For interested micro and small enterprise owners wanting to revitalize their heavily impacted businesses, application forms for the city’s BRAVE-ESP are available at the City Permits and Licensing Office.
She stated that some 2,000 heavily impacted micro and small businesses affected by the strict implementation of the community quarantine protocols are being eyed as initial beneficiaries of the local stimulus package to allow them to bounce back from the slump and help the local economy recover.
Initially, the BRAVE-ESP was supposed to run through from the 4th week of June to the 4th week of August, or until such time the funds allotted for the purpose will be exhausted.
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Earlier, the city government earmarked some P100 million from its existing Coronavirus Disease 2019 (COVID-19) operations fund for its BRAVE-ESP following the heavy impact that was inflicted by the implementation of the Luzonwide lockdown to the national and local economy.
In a recent survey conducted by the Hotel and Restaurant Association of Baguio (HRAB) presented during the consultation with tourism industry stakeholders and medical professionals last Friday, some 70 to 78 percent of the city’s tourism-related businesses had been heavily impacted during the implementation of the community quarantine from April to June.
Further, more than P550 million in supposed labor cost was lost during the aforesaid period caused the displacement of thousands of workers in the tourism-related businesses.
Based on the data from the City Permits and Licensing Division, more than 20,800 of the over 23,400 registered businesses are classified as micro, while more than 2,400 are deemed small enterprises.
Clemente pointed out this provision of affordable loans part of the city government’s plan to gradually allow the local economy to open while balance between the health and safety of the people and the urgent need for them to have sustainable sources of livelihood.
She admitted that if the city will not make any move to gradually open the local economy, there will be more businesses that will likely to close further increasing more workers without livelihood and adding problems for the city government.
By Dexter A. See
Photo by Armando M. Bolislis
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