Solon appeals for economic support for MSMEs
A lawmaker appealed to the government to provide a program for the small and medium enterprises (SMEs) to help them cope up with the economic turbulence caused by the current pandemic.
Leyte Rep. Lucy Torres-Gomez proposed to the government to provide support like low-interest loans that can be used by the businessmen as capital for expansion and growth of their operations.
Due to the imposition of quarantine protocols, the spending activities of the consumers are limited.
“As our economy remains weak due to the harsh impacts of the COVID-19 pandemic, our government can find a way to strengthen small and medium enterprises. The executive, through the initiative of lawmakers, can provide loans to these SMEs to help keep them afloat during these challenging times. This can be included in the 2022 national budget, which budget managers are still finalizing,” Torres-Gomez said.
Torres-Gomez said the government should prepare people by teaching them opportunities that they can explore while full-time and even part-time jobs are limited and unstable.
“People need stable jobs, but in the absence of such, the government can provide income opportunities,” the chairperson of the House committee on disaster resilience.
Torres-Gomez lamented that while small businesses are essential to a country’s economy, many SMEs struggle to find capital funding.
“Small or medium businesses do not have access to resources that many established businesses may have. An SME loan is a credit facility that can be extremely useful for SMEs to realize their full potential through appropriate funding. An SME loan would allow small business owners to ramp up their inventories even when cash flow is delayed,” she added.
She said small business loans are more practical because these usually have low documentation requirements, are collateral-free, have low-interest rates, and are thus affordable; and have a flexible repayment scheme.
“Our government leaders cannot lose sight of business rookies. There should always be ways to look out for everyone’s needs. Like low-income families who seek government support to survive the ruthless effects of this national health emergency, small and medium business investors also want the backing of their leaders to endure the economic blows of COVID-19,” she stressed.
