Micro, small and medium enterprises (MSME) are the primary beneficiaries by offering them alternative source of financing, said Rebecca Narciso, department manager of Small Business Corp. (SB Corp) which is an attached agency of DTI.
She said the government has allotted P1 billion to help small entrepreneurs grow their businesses.
“To help them gain easier access to alternative financing at reasonable cost, we at SB Corp have initially allocated P100 million for lending to microenterprises throughout the country, at an interest rate of 2.5 percent and amounts ranging from P5,000 to P100,000,” Narciso said.
She explained that under the P3 program, the loan does not require collateral and minimal documentary requirements will be submitted, adding that the rate compares well with 10-20 percent per month charged by other fund providers.
The Department of Budget and Management has released the first tranche of fund to SB Corp. amounting to P334.250 million.
Aside from SB Corp, Radiowealth Finance Company, Taytay Sa Kauswagan Inc., Cebuana Lhuillier and MASS SPECC Cooperative Development Center are also set to implement the program in all their branches/business units nationwide.
