THE Department of Trade and Industry (DTI) and its micro-financing arm Small Business Corp. (SBCorp) have ironed out the implementing guidelines on helping micro entrepreneurs in the country under the Pondo sa Pagbabago at Pag-asenso (P3) program.
A P1-billion lending program, P3 provides micro, small and medium enterprises (MSMEs) an alternative source of financing that is easy to access and at a reasonable cost. The fund gives priority to the country’s 30 poorest provinces.
“Through this micro-financing program, those from the bottom of the pyramid will get to climb the ladder by expanding their businesses,” DTI–Regional Operations Group Supervising Undersecretary Zenaida Maglaya said on Tuesday.
DTI Secretary Ramon Lopez is set to introduce the national conduits and local Micro-Financing Institutions (MFIs) for the P3 program on Thursday.
Following President Rodrigo Duterte’s directive to replace the “5-6” money lending scheme, the P3 is seen to help stabilize the supply and cost of commodities in public markets, encourage small entrepreneurs to grow their businesses and offer employment and generate income for Filipinos.
The funding of P3 from the Office of the President will be coursed through SBCorp. which will accredit partner institutions such as non-bank MFIs, cooperatives and associations to serve as conduit for the program.
“We’re very grateful that this program has become a reality. MSMEs now have an option to avail themselves of cheaper funds to expand their business,” Maglaya said.
P3 was launched earlier this year Leyte, Sarangani and Occidental Mindoro. Its primary beneficiaries are microenterprises and entrepreneurs that do not have easy access to credit, including market vendors, agri-businessmen and members of cooperatives, and industry associations.
The program requires minimal documentation, and loan applications are processed within one day with an interest rate of 2.5 percent a month. The payment terms are weekly or daily.
With no collateral requirement, the loanable amounts range from P5,000 to P100,000.