Small businesses in the Philippines have been suffering from a vicious cycle where they have to deal with unregistered loan sharks, also known as 5-6 lending system that charge exorbitant rates. Owners of micro-enterprises such as market vendors, sidewalk vendors and agriculture-based livelihood have little or no access or lack eligibility to loans often offered by banks and government institutions.
President Rodrigo Duterte has expressed disapproval over the prevailing business.
“They are violating Philippine laws by indulging in a money-making business without the necessary permits,” Duterte said. But more than just offering to shut down and deportation of those caught practicing the illegal lending scheme, the President has opened opportunities through programs such as the Pondo sa Pagbabago at Pag-asenso program.
The P3 is a funding program that provides micro-enterprises with an alternative source of financing that is easy to access and made available at a reasonable cost. This program gives a boost to the development of the Micro Small and Medium Enterprises sector, particularly the micro-enterprises that comprise about 90% of registered enterprises in the Philippines.
The program is in line with President Rodrigo Duterte’s directive to provide affordable micro-financing program for MSMEs as outlined in the General Appropriations Act of 2017 which allocated P1 billion financial assistance subsidy to micro-enterprises under the P3 Program. Depending on the performance of this initial funding, P3 may be scaled up and included in the GAA in the following years.
At very affordable interest rates, main beneficiaries of the program namely market vendors, those engaged in agribusiness, and members of cooperatives are seen as the ones who will benefit the most.
The P3 Program shall be administered by the Small Business Corporation, an attached agency of the Department of Trade and Industry. Aside from creating a Program Management Office to oversee the management and monitoring of the P3 Fund, SB Corporation will make use of its lending network and the DTI Negosyo Centers in reaching out to P3 beneficiaries. It shall manage the P3 Fund through separate books (from SB Corporation proper) that will be subject to COA audit.
Deployment of the P3 Fund will be made in two methods by the Small Business Corporation.
1) Wholesale lending – Small Business Corporation will partner with conduits such as micro-finance institutions, cooperatives, associations and other similar organizations.
2) Direct retail lending – Small Business Corporation will engage directly with individual enterprise borrowers, startups and others with funding needs.
P3 Funds will be drawn from the Department of Budget and Management. Loan amounts to end-borrowers will be in the range of P5,000 to P100,000, at a maximum interest rate of 2.5% per month, with no collateral requirement. The rate compares well with the 10-20% per month charged by other fund providers. Other delivery mode is direct retail lending, limited by SB Corp’s reach and targeting more specialized borrower segments so that this is only a small fraction of the P3 Funds.
This may include individual enterprise borrowers, start-ups and other funding needs that are not usually responded to by formal sources of funds. P3 allocates P100 million for direct lending by SB Corp. Target loan beneficiaries are the small enterprises in priority and emerging industries, start-up businesses and technology innovators. Minimum loan amount will be P300,000 with interest rate capped at 10% p.a., with or without collateral cover.
Ano ang P3?
Bilang tugon sa direktiba ng Pangulo na maiangat ang MSME sector, nilikha ang Pondo sa Pagbabago at Pag-asenso (P3) ng gobyerno. Ito ay naglalayong tumulong sa mga maliliit na negosyante na humihiram sa kasalukuyan sa 5-6 lending para mapalago ang kanilang negosyo. Layunin nitong makapagbigay ng alternatibong mapagkukunan ng karagdagang puhunan na:
- Mas mabilis na pautang – isang araw
- Mas mababang interes – maximum 2.5% kada buwan
- Magaan na pagbabayad – araw-araw/lingguhan ang koleksyon
Sino ang makikinabang sa P3?
Target ng programang ito na maabot ang mga maliit na negosyante na humihiram sa kasalukuyan sa 5-6 lending.
Magkano and pwedeng utangin sa P3?
Para sa mga nagnanais na mapalaki ang kanilang negosyo, makakahiram ng mula P5,000 hanggang P100,000 mula sa programa.
Saan pwedeng lumapit at mag-apply ng P3?
Maaring lumapit sa mga partner conduits ng Small Business Corporation (SB Corp). Maaari rin lumapit sa mga accredited na local na kooperatiba at organisasyon sa inyong lugar (ang kumpletong listahan ay maaring makuha mula sa mga opisina ng SB Corp at DTI).
Para sa karagdagang impormasyon maaring tumawag sa SMALL BUSINESS CORPORATION P3 Hotline (+ 632 813-5711)
Maari din tumawag at magtext sa:
Head Office/Southern /Central Luzon
(Smart: 0928-768-4674 /Globe: 0956-688-9496)
(Smart: 0949-712 -0802/Globe :0956-688-9518)
(Smart: 0921–534-3584/Globe: 0995-549-2889)
(Smart: 0949-712-0780 /Globe: 0956-674-0639)
Maari din dumulog sa mga DTI Negosyo Center o tumawag sa DTI Direct (+632 751- 3330/ +63 917 834-3330)
Small Business Corporation
17-18F Corporate Center
139 Valero St., Salcedo Village, Makati City
Trunkline: (+632) 751.1888
Fax: (+632) 894.1677
Bartholomew Brillo L. Reynes
President & CEO
Phone: (+632) 751.1888 loc. 1810
Telefax: (+632) 813.5720