The Department of Trade and Industry (DTI) has announced on Tuesday that they need to secure more funds for the government’s Loan programs for micro, small, and medium enterprises (SMEs) as it is already oversubscribed.
Trade Secretary Ramon Lopez disclosed in a virtual briefing that the ₱1 billion COVID-19 Assistance to Restart Enterprises (CARES) program is already oversubscribed by two times, with applications already amounting to over ₱2 billion.
The latest data from the DTI shows that the Small Business (SB) Corp. has approved a total of ₱100 million-worth of loans under 1,175 accounts. A total of ₱5 million has been released to at least 55 accounts and the ₱95 million is currently awaiting to be released to 1120 and is currently waiting for the borrowers’ signatures.
DTI’s data also showed that a total of 1,638 applications have been denied out of the 22,932 who applied for the CARES loan program. The most common reason for the rejection was due to the business tenure of less than one year as of application.
The SB Corp launched its CARES Program in May, which was allotted with ₱ 1 billion by the government and can be loaned by MSMEs.
Which businesses are allowed to apply to this said program?
- A business that has operated for a least a year prior to the lockdown or March 16, 2020.
- Micro enterprises with asset size of not more than ₱3 million can borrow around ₱10,000 to ₱200,000.
- Small enterprises with asset size of not more than ₱15 million may borrow up to ₱500,000.
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