SB Corp to introduce 10 Credit Delivery Partners for P3 program

The Small Business Corporation will introduce 10 Credit Delivery Partners (CDPs) from Luzon to Mindanao to deliver fast and efficiently the Pondo sa Pagbabago at Pag-asenso (P3) program to micro entrepreneurs.

Department of Trade and Industry (DTI) Secretary Ramon Lopez said the 10 CDPs will make the delivery of the P3 program faster to micro entrepreneurs in rural areas to help spur economic activity in the countryside and provide employment to Filipinos.

“President Rodrigo Duterte’s administration always seeks for ways to provide service and assistance to our micro entrepreneurs in the easiest and most accessible way as possible, especially to those from the countryside,” said Sec. Lopez.

SB Corp., the micro financing arm of the Department of Trade and Industry, through the P3 program has extended financing assistance to over 89,000 micro entrepreneurs as the government's flagship program that aims to topple loan sharks has widen its reach throughout the country since its inception in 2017.

As of July 23, 2019, the SB Corp has released a total of P2.9 billion worth of loans to micro entrepreneurs through its 353 credit delivery partners that has reached rural and far-flung areas in the country.

SB Corp President and CEO Ma. Luna Cacanando welcomed the inclusion of the 10 Credit Delivery Partners, which she acknowledged would help in distributing the much-needed funds by micro entrepreneurs.

The Pondo sa Pagbabago at Pag-asenso (P3) program is a P1 billion loan financing program intended to give micro enterprises better access to finance, providing them an alternative to the informal or 5-6 scheme of lending.

Among the CDPs that will be introduced are rural banks and cooperatives: FICO Bank from Cauayan City, Isabela; GM Bank of Luzon from Cabanatuan City, Isabela; The New Rural Bank of San Leonardo from San Leonardo, Nueva Ecija; Bank of Florida from San Fernando, Pampanga; St. Francis Multi-purpose Cooperative from Malolos, Bulacan; MVSM Rural Bank from Marikina City; Cebu People’s Cooperative from Cebu City; Silangan Multi-purpose Cooperative from Davao City; Cantilan Bank from Surigao del Sur; and Yakap at Halik Multi-purpose Cooperative from Quezon Province.

Secretary Lopez reiterated that with the loan program, micro enterprises may find relief from overly expensive borrowings and afford cost-efficient and affordable form of loan that will help expand their businesses.

Meanwhile, the P3 program also 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 P27.71 million released to 335 soldiers and policemen, and their families.

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.

P3 guidelines set; DTI to introduce national conduits

As funds for the Pondo sa Pagbabago at Pag-asenso (P3) expected to be released anytime soon, the Department of Trade and Industry (DTI) and its micro-financing arm Small Business Corporation (SB Corp) have ironed out the guidelines of its implementation that will help micro entrepreneurs throughout the country.

Being the administration’s program to provide an affordable micro-financing for the country’s micro, small and medium enterprises (MSMEs), the P3 funding program provides micro enterprises an alternative source of financing that is easy to access and made available at a reasonable cost.

                                                                        

“We’re very much excited because this is our vision in the agency—to help underprivileged by giving better chances to elevate from poverty. Through this micro-financing program, those from the bottom of the pyramid will get to climb the ladder by expanding their businesses,” DTI – Regional Operations Group (DTI-ROG) Supervising Undersecretary Zenaida Maglaya said.

                

DTI Secretary Ramon Lopez is set to introduce the national conduits and local Micro-financing Institutions (MFIs) for the P3 program.

The Pondo sa Pagbabago at Pag-asenso (P3) is a P1 billion financing program intended to give MSMEs better access to finance and to reduce their cost of borrowing. The fund will also give priority to the country’s 30 poorest provinces.

Following President Rodrigo Duterte’s directive to replace the “5-6” money lending system, the P3 is also seen to help stabilize supply and cost of commodities in public markets, encourage small entrepreneurs to grow their businesses, and offer employment and generate income for Filipinos.

The P1 billion fund of the P3 program from the Office of the President will be coursed through the SB Corp., which will accredit partner institutions such as non-bank MFIs, cooperatives and associations to serve as conduit for the P3 funds. With borrowers identified through these, collection of repayments will be efficient.

“We’re very grateful that this Program has become a reality. MSMEs now have an option to avail of cheaper funds to expand their business,” Maglaya explained.

The P3 Program was launched in Tacloban in Leyte on January 25, San Jose, Occidental Mindoro on January 27, and Alabel, Sarangani last January 30.

The primary beneficiaries of the P3 Program are microenterprises and entrepreneurs that do not have easy access to credit. These include market vendors, agri-businessmen and members of cooperatives, and industry associations.

P3 will also make it easy for borrowers since it will only require minimal documentation requirement; easy to access with only one (1) day processing of application; low cost interest at 2.5% per month; and easy payment with collection on a weekly or daily basis, as necessary.

Loan amounts to end-borrowers will range between P5,000 and P100,000, with no collateral requirement. END