MCGP Beneficiaries Reap ₱1.47 Billion in Guaranteed Loans

Since the MSME Credit Guarantee Program (MCGP) was launched in December 2020, guarantees extended to loans of micro, small, and medium enterprises (MSMEs) have reached ₱1.47 billion as of end-March according to Alberto Pascual, Philippine Guarantee Corp (PhilGuarantee) president and CEO.

The number of beneficiaries under the MCGP has also increased drastically. MSMEs that have availed of guarantees rose from 2,948 businesses in December to 12,122 in March, presenting a growth of 312%. Pascual attributes this increase to improved processing and evaluation parameters.

A total of ₱37.7 billion in credit guarantee lines have been approved by the PhilGuarantee Governing Board, which is chaired by Finance Secretary Carlos Dominguez, to 34 banks since the MCGP’s implementation.

Guarantees of ₱503.5 million, accounting for 67.26% of the total, were granted to 9,113 MSMEs included in the wholesale and retail sector, which is the largest group of beneficiaries.

The manufacturing sector follows as the second biggest group at 1,048 MSMEs with guaranteed coverage of ₱58.17 million or 7.77% of the total

₱33.91 million or 4.53% of the loans covered under MCGP went to the third-biggest sector, the agriculture sector, with 158 MSMEs.

573 MSMEs under the hotel and restaurant sector were granted guaranteed loans of ₱28.45 million. Another ₱31.82 million worth of guarantees went to the personal services sector.

Under the MCGP, MSMEs that avail of loans amounting to less than ₱1 million from thrift banks and rural banks can be guaranteed. However, there is a minimum loan amount which is set at P100,000.

More banks have also submitted applications to participate in the program.

Source: PhilStar