The Anti Red Tape Authority (ARTA) is exploring the possibility of speeding up the processing and release of micro-business loans with the Small Business Corp. (SB Corp), the micro-lending arm of the government.
This developed as a result of a discussion led by ARTA Managing Director Jeremiah Belgica with the Philippine Chamber of Commerce and Industry (PCCI), which raised complaints from its MSME members regarding the slowness of the processing of applications and the release of their loans with SB Corp. PCCI is a champion of ART.
During the meeting, PCCI cited SBCorp’s processes that have slowed the demand and release of microenterprise loans. SBCorp received 10 billion pesos for MSMEs under the Bayanihan 2 law. Of this figure, 4 billion pesos was set aside for non-tourism establishments and the bulk of 6 billion pesos for tourism businesses.
During the meeting, Belgica cited some avenues to facilitate the processes.
The head of ARTA promised to summarize the points for consecutive meetings.
ARTA will further present a report for the ongoing Senate Committee on Commerce, Commerce and Entrepreneurship hearing on the impact of the COVID-19 pandemic on businesses and ways to help economic recovery. .
Meanwhile, SBCorp and the Development Bank of the Philippines (DBP) have partnered through a Memorandum of Understanding (MOU) to develop a collaborative approach between the funding programs of the two institutions to further facilitate the recovery and sustainable growth of MSMEs.
Through marketing segmentation and strategic customer referral process, DBP’s MSME recovery program and SBCorp’s COVID-19 Business Restart Assistance (CARES) program, both of which are designed to accelerate recovery MSMEs, will complement each other in order to provide more effective assistance. to their target beneficiaries.
These collaborative strategies will be implemented by reciprocally identifying the institutions’ market segments and designing a two-way client referral process that will be based on the size of the firms’ assets in accordance with the institutions’ individual mandate and existing lending guidelines.
In a statement, DBP President and CEO Emmanuel G. Herbosa said the partnership would serve as DBP’s response to the needs of their clients with nominal loan requirements and insufficient documentation. “Through this Memorandum of Understanding, we are committed to acting together to ensure that our programs function to best serve the interests of our target beneficiaries in a more effective and efficient manner,” he added.
On the other hand, SBCorp President and CEO, Ma. Luna Cacanando asserted that DBP’s MSME recovery program is a complementary facility to the CARES program, as both programs offer similar features at low cost of financing, longer repayment terms and grace period and unsecured loan for amounts not exceeding PhP 3.0 million. “The synergies that this partnership will produce will not only be mutually beneficial for our respective institution, but will ultimately go a long way in helping our MSMEs to restart and rename their businesses,” added PCEO Cacanando.
DBP Senior Vice President Paul D. Lazaro and SBCorp Executive Vice President Santiago Lim also shared their optimism about the potential of the collaboration.
The program interventions developed by institutions for MSMEs are in line with the promulgation of Republic Law No. 11494, also known as the Bayanihan to Recover as One Act (BARO), which is expected to strengthen the resilience of the Philippine economy.
“We need to build stronger alliances, not only to ensure the success of our corporate goals, but to realize our nation’s collective aspirations to help our MSMEs survive and ultimately recover from the economic challenges brought about by the ‘national health emergency that the country is facing in the last 15 months, ”added PCEO Cacanando.
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