The Small Business Corporation (SB Corp) will introduce 10 Credit Delivery Partners (CDPs) from Luzon to Mindanao to deliver fast and efficiently the Pondo sa Pagbabago at Pag-asenso (P3) program to micro entrepreneurs.
Department of Trade and Industry (DTI) Secretary Ramon Lopez said the 10 CDPs will make the delivery of the P3 program faster to micro entrepreneurs in rural areas to help spur economic activity in the countryside and provide employment to Filipinos.
“President Rodrigo Duterte’s administration always seeks for ways to provide service and assistance to our micro-entrepreneurs in the easiest and most accessible way as possible, especially to those from the countryside,” said Sec. Lopez.
SB Corp, the micro financing arm of the Department of Trade and Industry, through the P3 program has extended financing assistance to over 89,000 micro entrepreneurs as the government’s flagship program that aims to topple loan sharks has widened its reach throughout the country since its inception in 2017.
As of July 23, 2019, the SB Corp has released a total of P2.9 billion worth of loans to micro-entrepreneurs through its 353 credit delivery partners that has reached rural and far-flung areas in the country.
SB Corp President and CEO Ma. Luna Cacanando welcomed the inclusion of the 10 Credit Delivery Partners which she acknowledged would help in distributing the much-needed funds by micro-entrepreneurs.
The Pondo sa Pagbabago at Pag-asenso (P3) program is a P1 billion loan financing program intended to give micro-enterprises better access to finance, providing them an alternative to the informal or 5-6 scheme of lending.
Among the CDPs that will be introduced are rural banks and cooperatives: FICO Bank from Cauayan City, Isabela; GM Bank of Luzon from Cabanatuan City, Isabela; The New Rural Bank of San Leonardo from San Leonardo, Nueva Ecija; Bank of Florida from San Fernando, Pampanga; St. Francis Multi-purpose Cooperative from Malolos, Bulacan; MVSM Rural Bank from Marikina City; Cebu People’s Cooperative from Cebu City; Silangan Multi-purpose Cooperative from Davao City; Cantilan Bank from Surigao del Sur; and Yakap at Halik Multi-purpose Cooperative from Quezon Province.
Secretary Lopez reiterated that with the loan program, micro-enterprises may find relief from overly expensive borrowings and afford cost-efficient and affordable form of loan that will help expand their businesses.
Meanwhile, the P3 program also has reached out to Maranao entrepreneurs through the Bangon Marawi initiative and has released P7.5 million to 457 Maranao borrowers. Likewise, soldiers and policemen who were either wounded or killed in action during the Marawi siege were also provided assistance with a total of P27.71 million released to 335 soldiers and policemen, and their families.
Under the P3 Program, a micro-enterprise can borrow between P5,000 up to P200,000 depending on its business need and repayment capacity with no collateral requirement. Interest rate and service fees, all in, do not exceed 2.5 percent monthly.
The P3 Program serves as an alternative to the P30 billion “5-6” money lending industry that charges 20 percent nominal interest rate to MSMEs.