The Department of Trade and Industry (DTI) said the government’s Pondo sa Pagbabago at Pag-asenso (P3) program has already benefitted more than 96,000 micro entrepreneurs.
DTI, through the Small Business Corp., has already released P3.3 billion worth of loans to micro entrepreneurs through its 378 credit delivery partners that can reach rural and far-flung areas in the country.
The P3 program is a financing scheme intended to give micro enterprises better access to financing, providing them an alternative to the informal or ‘5-6 lending’.
Implemented by the DTI through the SB Corp., the program allows a micro entrepreneur to borrow from P5,000 to P200,000, depending on its business need and repayment facility.
No collateral requirement is needed and interest rate and service fees do not exceed 2.5 percent monthly.
Trade Secretary Ramon Lopez earlier said he will ask President Duterte to certify as urgent a bill seeking to institutionalize the P3 program.
“The main purpose is to institutionalize the program so even if there’s a change of administration, the funding is already in the law. In the original plan, the [funding] supposedly is P4 billion annually for four years,” said Lopez.
“President Rodrigo Duterte’s administration always seeks for ways to provide service and assistance to our micro entrepreneurs in the easiest and most accessible way as possible, especially to those from the countryside,” Lopez added.