lending program for Marawi
November 29, 2017
MANILA – Department
of Trade and Industry’s (DTI) financing and guarantee attached
corporation, Small Business Corporation (SBCorp) attached
micro-finance will be offering zero percent interest loans to help
the constituents of Lanao del Sur, specifically Marawi micro
entrepreneurs displaced by the war, starting early December 2017 up
to April 2018 as part of government rehabilitation efforts of Marawi
“The recent events in
Marawi raised the need to generate several programs that will aide
in the rehabilitation of Marawi and the full assistance to affected
residents. In support of government-wide efforts to help the people
of Marawi, we will be working closely with our Maranao countrymen to
ensure they have access to the needed funds to get their businesses
back on their feet,” said Trade Secretary Ramon Lopez.
After the interest free
loan, we shall extend the Pondo sa Pagbabago at Pag-asesnso (P3)
Program which is also the Microfinance program implemented by the
SBCorp. This will be complemented by starter livelihood kits being
distributed by the DTI.
For Micro Finance
Institutions (MFIs) that want to start lending to the Lanao del Sur
area in solidarity with the people of Marawi and the entire
province, the P3 Program will provide credit risk support to MFIs in
exchange for their timely and quick response. A DTI-SBCorp team has
been assigned at DTI-Marawi to set up the P3 facility, which will
also be supported by DTI-Cagayan de Oro.
To date, SBCorp – with the
support of the DTI regional and provincial offices – has accredited
a total of 94 MFIs, plus another 45 MFIs in the pipeline. Moreover,
the P3 Program is now rolled out throughout the entire country from
north to south except for a handful of provinces, with close to
40,000 borrowers to date.
Most of the MFIs that have
signed up are cooperatives, i.e. self-help people’s organizations
that have a good grasp of the needs of their members to grow their
businesses. Likewise, several large MFIs – including the Center for
Agriculture and Rural Development (CARD) – have aired their support
to the program for its timely scale up even in remote areas of the
“We laud SBCorp’s untiring
efforts to link up with finance institutions across the country to
ensure conduits are in place for the P3 Program. We have the funds,
and we now have the channels to help our MSMEs expand their
businesses,” said Sec. Lopez.
For 2018, the government
will add another P1.0 billion to the P3 fund to support more micro
enterprises in growing their small business.
The SBCorp will be
accrediting least five local MFIs per province in the coming years
to ensure that micro enterprises will have easy and reliable access
to reasonably-priced credit within their own locality, with a total
of 400 grassroots conduits targeted. The agency will also support
these MFIs by way of capacity-building training.
Through the P3 program,
the government hopes to encourage communities to organize themselves
into cooperatives or other self-help units engaged in
DTI also opened the
invitation to the rural banking sector to support the P3 Program,
given the more than 2,000 branches nationwide that are mostly
rural-based. These make the small banks a potent force for scaling
up the P3 Program and for improving the fund-channeling system so
that the fund reaches micro enterprises in a timely and judicious
Launched last April 2017,
the P3 Program supports micro entrepreneurs across the country with
an initial funding of Php850 million via lower cost loans. The
program is intended to help those people involved in micro
enterprises and who are vulnerable to usurious lenders in the
absence of an alternative source.
Under the program, a micro
enterprise can borrow between P5,000 up to P100,000 depending on its
business need and repayment capacity. Interest rate and service fees
do not exceed 2.5 percent monthly as compared to the 20 percent
monthly rate under the 5/6 system. Documentation is simplified and
processing time is also reasonable.
Among those helped by the
P3 Program were Rose Marie Obena of Tacloban City, Leyte and
Hercolano Villasin of Calubian, Leyte. Obena was the sole survivor
among her family after Typhoon Yolanda, and was among the first
batch of market vendors that accessed a P3 loan to expand her store.
The 78-year old Villasin, on the other hand, accessed the P3 Program
through the Fatima Multi-Purpose Cooperative (FATIMA MPC) to support
his dried fish business, which he had been doing since he was in his
“Through the P3, our poor
sectors can find relief from overly expensive borrowings as they
pursue their livelihood activities,” the trade chief said.