DTI Launches Loan Program for Typhoon Carina-Affected MSMEs

The Small Business Corporation (SBCorp), the financing arm of the Department of Trade and Industry (DTI), has introduced a new loan program to support micro, small, and medium enterprises (MSMEs) affected by Typhoon Carina last month.

SBCorp announced the launch of its Enterprise Rehabilitation Financing (ERF) program on August 27, 2024. The ERF is a special loan facility designed to provide crucial financial assistance to MSMEs devastated by Typhoon Carina, enabling them to recover and rebuild their operations.

“We understand the challenges businesses face as they work to rebuild and resume normal operations after the devastating impact of this typhoon, which surpassed even the rainfall record of Super Typhoon Ondoy,” said SBCorp President and CEO Robert Bastillo. “This emergency fund, offering concessional terms not currently available in the market, aims to finance the immediate needs of MSMEs. These needs include the repair and replacement of damaged fixed assets and inventories, operational disruption, and revenue loss.”

Loan Program Details

Under the ERF program, both new and existing MSMEs can borrow up to PHP 300,000, repayable over three years. Borrowers are eligible for a three-month grace period to ease the initial repayment burden. The loans feature zero interest for the first year, followed by a 1% monthly interest rate on a diminishing balance for the second and third years.

The following areas are eligible for the ERF program:

• National Capital Region
• Ilocos Norte
• La Union
• Bataan
• Pampanga
• Bulacan
• Tarlac (Camiling)
• Cavite
• Rizal
• Laguna (Mabitac)
• Oriental Mindoro (Pinamalayan and Baco)
• Romblon (San Andres)
• Zamboanga (Tambulig)
• Davao Occidental (Jose Abad Santos and Trinidad)
• Cotabato (Kabakan and Pikit)

Existing borrowers who are already in repayment and have not yet reached the PHP 300,000 loan cap can access the facility without submitting any additional documentation. New borrowers must provide a Mayor’s Permit or Barangay Micro Business Enterprise (BMBE) Certificate for loans over PHP 100,000, or a Barangay Certification for loans up to PHP 100,000. Additionally, all new applicants need to submit a government-issued ID, proof of a bank or e-money account, and corporate documents, if applicable.

Applications for the ERF program will be accepted through SBCorp’s loan portal on its website until the end of September.