Wednesday, November 23, 2016

‘Yolanda’-hit businesses get PHP317.67-M loan

TACLOBAN CITY, Nov. 23 (PNA) -− State-run Small Business Corporation (SBC) reported a total of PHP317.67 million loans released to small and medium enterprises (SMEs) in Leyte province badly-hit by super typhoon Yolanda.

Antonio Elmer Garado, SBC chief accounts management specialist, disclosed that as of October this year, 381 out of 493 borrowers have fully received the financial aid through the enterprise rehabilitation fund program (ERFP).

“The application has stopped in 2015. Right now, we are working on the releases of loans for 112 remaining borrowers. The releases of loans are well-supervised. We validate everything before we approved the loans and they have to liquidate all their expense,” he added.

The government launched the ERFP in February 2014, three months after super typhoon Yolanda struck. Under this program, SMEs can apply for a loan ranging from PHP200,000 to PHP5 million with five to six percent interest rate every year. Repayment starts after the loan disbursement.

“Businessmen can’t say that the government neglected them. They're now back on their feet because of this assistance,” Garedo stressed.

To ensure sustainability of the financing program, the corporation makes a monthly visit to beneficiaries.

“We need to balance the mandate and social obligation to help small business group, but at the same time taking into mind that this program has to be sustainable to protect the government’s fund,” he explained.

The state-run Corporation reminded that they will run after the beneficiaries, who will fail to pay five years after the loan disbursement.

SBC is the lending arm of the Department of Trade and Industry with a mandate to provide financing to small enterprise development.(PNA)
LAP/SQM/Ana Rose D. Cinco (OJT)

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