THE Small Business Corp. (SB Corp.) has received more than 15,000 loan applications with a total loan amount exceeding the the allotted P1 billion Covid-19 Assistance to Restart Enterprises (Cares) Program nationwide.
SB Corp., the micro-financing agency attached to the Department of Trade and Industry (DTI), said it is processing the applications on a first come-first served basis.
“In view of the funding limitation of the Cares Program, we are temporarily stopping our online application system starting Friday, June 19. We hope that this will be a brief suspension as we try to exhaust all options to secure additional appropriations for micro, small and medium enterprises that are negatively affected by the Covid-19 pandemic,” the agency said in a statement.
Applications in CV
Francisco Buenavides, group head of the SB Corp. Visayas Group, told SunStar Cebu they received 544 applications in Central Visayas.
“This is P102 million worth of applications, either received through manual applications or emailed directly to us,” he said.
According to a report, Trade Secretary Ramon Lopez said the program is part of the economic relief program of President Rodrigo Duterte for small businesses greatly affected and further marginalized by the Covid-19 virus epidemic.
SB Corp. said the loan fund is open to micro and small enterprises with at least one year of continuous operation prior to March 2020, and whose businesses suffered drastic reduction in sales during the pandemic.
Micro enterprises with asset size of not more than P3 million may borrow P10,000 up to P200,000, and small enterprises with asset size of not more than P10 million may borrow a higher loan amount not exceeding P500,000.
The loan shall be used to help the enterprise stabilize or recover from its losses.
Specifically, the following purposes are qualified for loan applications: updating of loan amortizations for vehicle loans or other fixed asset loans of the business, inventory replacement for perishable stocks damaged and working capital replacement to restart the business.
Interest rate shall be at 0.5 percent per month (discounted basis), and grace period on payments shall be given until such time that the economic crisis has abated. (JOB)