SB Corp. to offer P6-7B in loans targeting tourism, retail MSMEs

TIRACHARDZ -FREEPIK

THE Small Business Corp. (SB Corp.) said it will launch a new loan program with funding of P6-7 billion designed to help sustain the recovery of micro, small, and medium enterprises (MSMEs).

The program has a target of aiding 42,000 MSMEs, SB Corp. Spokesman Robert C. Bastillo said at a Laging Handa briefing on Wednesday.

The program, known as the Resilient, Innovative and Sustainable Enterprises, Unleash your Powers (RISE UP), launches on Friday, May 6.

SB Corp. is an arm of the Department of Trade and Industry.

According to Mr. Bastillo, RISE UP will offer a multi-purpose loan for multi-sectoral MSMEs, a loan product for small retailers known as Rise Up Tindahan, and a loan product for tourism businesses known as Rise Up Turismo.

Mr. Bastillo said the loan amounts are between P10,000 and P5 million. Eligible applicants must have been in operation for at least a year.

He added that current MSME loan clients in good standing or those that have paid off their loans can borrow up to P10 million from RISE UP.

“Pero ’yung additional P5 million ay meron ng security or collateral kasi lahat ng aming loans hanggang P5 million ay walang collateral (Amounts exceeding P5 million have to be backed by collateral. All loans up to P5 million are unsecured),” Mr. Bastillo said.

Mr. Bastillo said RISE UP follows up on the Bayanihan CARES financing program, launched to aid small businesses affected by the pandemic.

According to the SB Corp. website, Turismo loans are capped at P3 million unless backed by financial statements filed with the Bureau of Internal Revenue, in which case the maximum loan is up to 15% of the prior year’s sales. Loans taken on to purchase assets are capped at 50% of the value of existing assets and up to 80% of the new asset’s purchase price.

Turismo loans charged a 4-8% service fee depending on repayment terms, in lieu of interest. The loan is payable monthly up to four years.

Multi-purpose loans are capped at P300,000, subject to a 20% ceiling set by the value of existing business assets. They are payable in monthly instalments up to three years at an interest rate of 12%.

The website contained no information on Tindahan loans. — Revin Mikhael D. Ochave

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