DTI offers loans to Carina-hit MSMEs
The Department of Trade and Industry (DTI) on Thursday said its financing arm has opened a loan program for businesses affected by typhoon Carina, allowing borrowers to avail up to P300,000 that they can pay within three years.
The DTI said the government-owned lender Small Business Corp. (SBC) launched the special loan facility called the Enterprise Rehabilitation Financing (ERF) program last Aug. 27 to provide crucial financing assistance for micro, small, and medium enterprises (MSMEs).
“We understand the challenges businesses face as they work to rebuild and resume normal operations after the devastating impact of this typhoon,” SBC president and chief executive Robert C. Bastillo said in a statement.
“This emergency fund, offering concessional terms not currently available in the market, aims to finance the immediate needs of MSMEs. These needs include the repair and replacement of damaged fixed assets and inventories, operational disruption, and revenue loss,” he added.
Loans are interest-free in the first year, before increasing to 1 percent per month based on a diminishing balance method for the second and third years, according to the DTI. Borrowers can secure a three-month grace period in case they need a reprieve from payments.
MSMEs in the National Capital Region, Ilocos Norte, La Union, Bataan, Pampanga, Bulacan, Tarlac (Camiling), Cavite, Rizal, Laguna (Mabitac), Oriental Mindoro (Pinamalayan and Baco), Romblon (San Andres), Zamboanga (Tambulig), Davao Occidental (Jose Abad Santos and Trinidad) and Cotabato (Kabakan and Pikit) are qualified to apply.
