MSMEs can now borrow up to P20 million under new DTI program
Micro, small, and medium enterprises that are struggling to keep their business up amid the ongoing Middle East crisis can now access much-needed funding through the Department of Trade and Industry’s new P4-billion MSME Business Fund.
In a press conference, Secretary Ma. Cristina Roque explained that through the program, eligible businesses will be able to borrow between P30,000 and P20 million to cover their operational costs.
The loan offers a repayment term of up to five years with no collateral required for amounts up to P5 million. Additionally, borrowers benefit from a one-year grace period on both principal and interest payments.
"Napaka-importante ang capital sa isang negosyo, especially during times such as this... So this one year is enough time for the businesses to actually move forward," Roque said.
"Dahil po sa ongoing Middle East crisis, ang pondong ito ay binuo upang masiguro ang tuloy-tuloy na operations, makabili rin tayo ng raw materials, buy equipment, at higit sa lahat, makapag-expand din po ng negosyo or to prepare for the expansion of any business," she added.
To apply for the program, you can also do it online via the SBCorp website or by downloading the Small Business Corporation app. Once setting up an account, you can now choose to apply for a loan.
Be ready to prepare the necessary documents such as a government-issued ID, business permits, proof of bank account, photographs of your business assets and operations, registration with the DTI or Securities and Exchange Commission, and corporate documents for corporations.
Roque said applicants can also go to any of the 18 regional DTI offices and 1,344 Negosyo Centers nationwide.
“The processing, basta complete iyong documents, is seven to 10 days. Online processing na po ito. But if they want to know more about this, it's best for them to go to the different regional offices nationwide,” Roque said.
Several sectors in the Philippines are currently being impacted by the severe fuel price hikes brought about by the conflict in the Middle East. This began when Israel, in coordination with the US, launched airstrikes on Iran on Feb. 28, taking out Iranian Supreme Leader Ali Khamenei. Retaliatory attacks have upended the region, as well as markets across the globe.
