Landbank loans to MSMEs hit P49.5B as of June
MANILA -A P60-billion lending program of Land Bank of the Philippines for micro, small and medium-sized enterprises remains open until the end of this year, as outstanding loans to MSMEs reached a total of P49.5 billion as of end-June.
Landbank president and chief executive Lynette Ortiz said in a statement 6,100 borrowers have benefitted in terms of funding support for business expansion and acquisition of assets, among others.
The state-run bank has been offering special lending programs dedicated to the needs of MSMEs and aspiring entrepreneurs, on top of its regular loan facilities.
“Landbank recognizes the crucial role of MSMEs in advancing economic development and job generation,” Ortiz said. “We will continue to work with various government partners to grow our loan portfolio for the sector and open more opportunities for our local entrepreneurs.”
One such program is the I-Rescue (Interim Rehabilitation Support to Cushion Unfavorably
affected Enterprises by COVID-19) Lending initiative, which provides credit and loan restructuring assistance to MSMEs severely affected by the pandemic under more flexible terms and conditions.
I-Rescue was launched at the onset of the pandemic in 2020, with the available loanable fund eventually reaching P60 billion to accommodate more borrowers.
Also, Landbank extends financial assistance to women-owned or -led MSMEs by financing working capital, construction or renovation of buildings and facilities related to business operations, as well as purchase orders from the borrower’s clients.
Further, overseas Filipino workers (OFWs) are also supported to pursue business opportunities, through a partnership with the Overseas Workers Welfare Administration (OWWA) in offering loanable funds for working capital or acquisition of fixed assets, among others.
In addition, Landbank is financing new and existing franchisees for new business ventures or expansion of existing businesses, covering funding for working capital, fixed asset acquisition, and capital expenditures.
Through another partnership — with the Department of Science and Technology’s Technology
Application and Promotion Institute (DOST-TAPI) — Landbank also offers credit assistance for Filipino inventors, MSMEs and large enterprises to help commercialize their new and innovative technologies.