Loan program for SMES okayed
GOOD news to micro, small and medium enterprises.
A measure that provides a low interest, collateral-free loan program for the country’s MSMEs has been approved on third and final reading by the House of Representatives with a vote of 278.
One of the principal authors, 1PACMAN Rep. Mikee Romero said the House Bill 7363 or the “Pondo sa Pagbabago at Pag-Asenso Act” (P3 Act) aims to provide an affordable, accessible, and simple financing program for MSEs, especially those in the poorest populations and underserved areas.
“The passage of such measures and the program to be implemented are just a few steps to help our MSMEs recover from the pandemic,” Romero said.
There are several instances when small businessmen are left with the option of lending money to unscrupulous loan sharks with high interest.
To date, MSEs play an important role in economic growth because they employ millions of Filipinos.
HB 7363 mandates the creation of the Pondo sa Pagbabago at Pag-asenso (P3) Fund, “which shall be lent out to qualified MSEs under such terms and conditions that will meet the purposes of this Act.”
The P3 Fund shall be accessible through the Small Business Corporation (SB Corp.) and accredited partner financial institutions (PFIs) such as rural banks, thrift banks, development banks, cooperative banks, cooperatives, non-stock savings and loan associations, microfinance non-government organizations, or lending companies.
“The SB Corp., the financing arm of the Department of Trade and Industry (DTI), shall be the lead implementing agency for the P3 Fund,” the measure reads.
