Over 110,000 micro entrepreneurs have been assisted even as P5.1 billion has been released through the Pondo sa Pagbabago at Pag-asenso (P3) Program, which is being rolled out to the countryside to provide affordable and easy access loans to micro entrepreneurs.
Department of Trade and Industry (DTI) Secretary Ramon Lopez said the P3 Program will continue without let up to achieve the Trabaho, Negosyo at Kabuhayan Agenda of the Duterte Administration.
“The P3 program was created so that even the smallest of entrepreneurs, like the sari-sari stores owners and market vendors, will have an opportunity to grow their business without the usurious 5-6 loans. I encourage all entrepreneurs in need of capital to avail of the P3 program through the DTI Negosyo Centers and accredited credit delivery partners,” said Sec. Lopez
As of December 23, 2019, the Small Business Corporation (SB Corp.), the micro financing arm of the DTI, has extended financing assistance through the P3 program to 110,006 micro entrepreneurs. Established as the government's flagship program with the aim to address loan sharks and their onerous loans, P3 has been widened to reach Filipinos throughout the countryside since its inception in 2017 to give them better access to financing.
The SB Corporation has also released a total of P5.15 billion worth of loans through partner micro finance institutes (MFIs). In July, the SB Corporation also introduced 10 Credit Delivery Partners (CDPs) from Luzon to Mindanao to deliver fast and efficiently P3 loans. The P3 Program also now has 412 micro financing institute (MFI) partners to reach rural and far-flung areas in the provinces.
The P3 program is a P1 billion loan financing program intended to give micro enterprises better access to finance, while providing them an alternative to the informal or 5-6 scheme of lending.
Meanwhile, the P3 program has reached out to Maranao entrepreneurs through the Bangon Marawi initiative and has released P7.5 million to 457 Maranao borrowers. Likewise, soldiers and policemen who were either wounded or killed in action during the Marawi siege were also provided assistance with a total of P31 million released to 412 soldiers and policemen, and their families.
The primary beneficiaries of the P3 Program are microenterprises and entrepreneurs that do not have easy access to credit, which include market vendors, agri-businessmen, members of cooperatives, and industry associations.
Under the P3 Program, a micro enterprise can borrow between P5,000 up to P200,000 depending on its business need and repayment capacity with no collateral requirement. Interest rate and service fees, all in, do not exceed 2.5% monthly.
The P3 Program serves as an alternative to the P30 billion “5-6” money lending industry that charges 20% nominal interest rate to MSMEs.
Starting December 24, selected Marawi products will be available at UP Town Center, Quezon City and Greenhills Mall, San Juan City. Initiated by the Department of Trade and Industry (DTI) through its Task Force Bangon Marawi, the Bangon Marawi Pop-up stores will operate until June 23, 2020.
After the Marawi siege, the DTI has been active in assisting the Maranao entrepreneurs who were greatly affected by the crisis. The mounting of pop-up stores in major malls nationwide is part of the agency’s effort to provide opportunities to Marawi MSMEs and aspiring entrepreneurs.
The pop-up stores will offer a wide array of products such as brassware, home décor (baur, kulintang in different sizes), woven products, malongs and other wearables, pearls and costume jewelry.
The Bangon Marawi Pop-up store at the UP Town Center will be located at the Ground Floor, Phase 1 in front of Sports Barbers. Its store at Greenhills Mall will be temporarily located at the Cellphones & Gadgets Extension (Former Admin. Office), Level 2, until January 8, 2020 and will be transferred to the Home Decors Section near Chinabank starting January 9, 2020.
You may visit the stores from Mondays to Sundays during mall hours.
MAKATI -- The Department of Trade and Industry (DTI) renewed its partnership with the Center for Agriculture and Rural Development (CARD), Inc., an NGO that provides microfinancing loans.
Through a Memorandum of Understanding signed last 16 December, CARD committed an additional PHP 100 million of its funds for Pondo sa Pagbabago at Pag-asenso (P3) program. This brings CARD's total revolving fund for the P3 program since the partnership began in 2017 to PHP 300 million pesos, which it will lend out to other beneficiaries to widen the reach of the P3 program to more micro borrowers.
P3 is DTI's program that provides low-interest, no collateral loans for existing micro, small, and medium enterprises (MSMEs). The program, managed by Small Business Corporation (SB Corp), is a response to President Rodrigo Duterte's directive to combat 5-6 loans. Through P3, entrepreneurs can borrow amounts from PHP 5,000 to PHP 200,000 from CARD and other accredited credit delivery partners.
Trade Secretary Ramon Lopez said that DTI benefits from the partnership since CARD supplements the PHP 3.5 billion P3 allocation from the government with their own funds. CARD is also one of the biggest microfinance institutions in the Philippines, with 7 million borrowers nationwide.
Founder and Chairman Emeritus Dr. Jaime Aristotle Alip reported that CARD disbursed PHP 600 million in P3 loans to around 56,000 borrowers since 2017. He also said that CARD targets to increase its P3 allocation to PHP 100 million every year to reach 100,000 entrepreneurs.
Signing the agreement are (from L to R: ) SB Corp President Luna Cacanando, DTI Undersecretary Blesila Lantayona, DTI Secretary Ramon Lopez, CARD Founder Dr. Jaime Aristotle Alip, CARD Inc President Flordeliza Sarmiento and Executive Director Jocelyn Dequito.
