SB Corporation starts P3 CARES loan release

The Small Business Corporation has started releasing loans under its COVID-19 Assistance to Restart Enterprises (CARES) program to micro and small enterprises to help affected enterprises recover from losses due to unprecedented setbacks that their businesses faced during the pandemic.

As of July 8, 2020, a total of P22 million was released to 286 P3 CARES loan beneficiaries. Of this total, 71 are from Cavite, Laguna, Batangas, Rizal, and Quezon (CALABARZON), 52 from National Capital Region (NCR), 46 from Cordillera Administrative Region (CAR), 25 from Bicol Region, 22 from Central Visayas, 26 from Eastern Visayas, 18 from Mindoro, Marinduque, Romblon and Palawan (MIMAROPA Region), 12 from Cagayan Valley Region, 7 from Western Visayas, 6 from Ilocos Region and 1 from CARAGA Region.

Last July 3, Department of Trade and Industry (DTI) Secretary Ramon M. Lopez witnessed the loan signing of the initial 15 borrowers from NCR and 26 borrowers from the Cordillera Administrative Region.

The total number of approved loans to date is 2,419 accounts with a loan value amounting to P178.2 million. The SB Corporation looks to complete the disbursement of the P1-billion fund earmarked for this program by the end of August.

The CARES Program is part of the administration’s economic relief program for micro and small enterprises affected by the COVID-19 pandemic. The SB Corporation, an attached agency under the DTI, supervises the CARES Program.

Under the CARES program, micro and small enterprises operating for at least a year prior to March 16 and with an asset size not exceeding P15 million can tap the program.

Micro enterprises with asset size of not more than P3 million may borrow from P10,000 to P200,000 while small enterprises with asset size of not more than P15 million may borrow as much as P500,000. Interest rate on the loan is pegged at 0% payable for 18 to 30 months.

The loan shall be used to help the enterprise stabilize or recover from its losses. Micro and small enterprises may use the loan for the following purposes: Updating of loan amortizations for vehicle loans or other fixed asset loans of the business; Inventory replacement for perishable stocks damaged; and Working capital replacement to restart the business.