SBC unveils 2 new lending programs for small enterprises

Robert Bastillo —ALDEN M. MONZON

Small Business Corp. (SBC), the financing arm of the Department of Trade and Industry (DTI), is set to launch today two new financing programs for micro, small and medium enterprises (MSMEs), with one geared towards business expansion and the other allowing purchase orders to be used as credit collateral.

“In 2023, micro, small and medium enterprises made up 99.63 percent of registered businesses and created 6 million jobs in the Philippines, underscoring their role as the backbone of the economy,” the SBC says.

In the SBC’s program briefer, newly established businesses with less than a year of operations and startups or aspiring entrepreneurs are eligible for the business expansion programs.

READ: SBCorp continues to help MSMEs restart via online loan financing

Loan amount under this program ranges from P50,000 to 3 million, with repayment terms of up to three years and a grace period of six months.

The loan will have zero interest for the first six months before continuing to a 1-percent monthly interest afterwards based on diminishing balance.

Meanwhile, the purchase order financing program will be open to MSMEs with at least one year of business operation and with a minimum of three consummated purchase orders for the past three years.

Loanable amount under this program ranges from P30,000 to P20 million, or up to 80 percent of the purchase order amount.

Loan terms are set at a minimum of 30 days and a maximum of 360 days, while interest rate is pegged at 1 percent per month.

In an interview with the Inquirer in August last year, SBC president and chief executive officer Robert Bastillo had said that they get around 10,000 to 15,000 new borrowers every year.

These firms apply for a loan of P200,000 on average, according to the official.

The SBC accepts loan applications through its online portal: https://brs.sbcorp.ph/.