opens P1B loan facility for MSMEs affected by Covid-19 lockdown
March 24, 2020
MAKATI CITY – To
support micro and small businesses affected and cushion the economic
impact of the spread of Covid-19 virus in the country, the Small
Business Corporation is setting up a P1 billion Enterprise
Rehabilitation Financing facility under the Pondo sa Pagbabago at
Pag-asenso (named Covid19 P3-ERF).
The facility will be
implemented once the Community Quarantine declaration is lifted by
the National Government and/or respective Local Government Units.
Trade Secretary Ramon
Lopez explained that the P3-ERF facility is part of the economic
relief program of President Rodrigo Duterte for small businesses
greatly affected and further marginalized by the Covid-19 virus
The SB Corporation, an
agency under the Department of Trade and Industry, said the ERF loan
fund is open to micro and small enterprises with at least one year
continuous operation prior to March 2020, and whose businesses
suffered drastic reduction in sales during the ensuing epidemic.
Micro enterprises with
asset size of not more than P3 million may borrow P10,000 up to
P200,000 and small enterprises with asset size of not more than P10
million may borrow a higher loan amount but will not exceed
The loan shall be used to
help the enterprise stabilize or recover from its losses.
Specifically, the following purposes are qualified: 1) Updating of
loan amortizations for vehicle loans or other fixed asset loans of
the business; 2) Inventory replacement for perishable stocks
damaged; and 3) Working capital replacement to restart the business.
Interest rate shall be at
0.5% per month (discounted basis); and grace period on payments
shall be given until such time that the economic crisis has abated.