With the Bayanihan to Recover as One Act or Republic Act 11494 signed into law, a P10 billion fund has been allotted to the Small Business Corporation (SBCorp) to expand its COVID-19 Assistance to Restart Enterprises (CARES) Program.

Also to be made available under this fund is the CARES for Tourism Rehabilitation and Vitalization  of Enterprises and Livelihood (CARES for TRAVEL) Program which is allotted P6 billion out of the total fund.

SBCorp will start accepting applications for the Bayanihan CARES Program on October 26, 2020 to help MSMEs recover and ensure that workers keep their jobs.

Based on the guidelines, MSMEs with BIR-filed financial statements for 2018 or 2019 with no major negative credit track record are assured of a loan under the program.

MSME applicants who cannot submit a BIR-filed FS will just submit their barangay or municipal business permits,  photos or videos of business assets, and proof of sales for certain loan sizes.

Loan amount  to be granted will be based on the MSME applicant’s asset size and annual sales. However, additional limits to the loan size will be observed to ensure more MSMEs will benefit from the program.

Loans will have a one-time front-end service fee ranging from  4% to 8% depending on the number of years the applicant will pay.

Loan term can be up to four years and grace period up to six months. Certain industries such as tourism can be granted a longer grace period of up to 12 months.

Bayanihan CARES applications may be submitted through the SB Corp’s  online loan application system at https://brs.sbgfc.org.ph starting Monday, October 26, 2020.

For more information please visit the SBCorp Website at www.sbgfc.org.ph or call 8651-3333.

 

 

The Department of Tourism (DOT) and the Small Business Corporation (SB Corp) signed a Memorandum of Agreement (MOA) on Monday to finalize the COVID-19 Assistance to Restart Enterprises (CARES) for Tourism Rehabilitation and Vitalization of Enterprises and Livelihood (TRAVEL) program that will extend loan assistance to micro, small, and medium enterprises (MSMEs) from the tourism industry.

Signed by Tourism Secretary Bernadette Romulo-Puyat and SB Corp’s President and Chief Executive Officer Ma. Luna E. Cacanado, and Department of Trade and Industry (DTI) Secretary Ramon M. Lopez, the MOA seeks to disburse P6 billion worth of loans to tourism MSMEs, using the budget allocated to the SB Corp’s CARES program under the Bayanihan to Recover As One Act (Bayanihan 2), which directed the agency to expand its loan programs including that for tourism and “to administer loans for DOT but subject to guidelines from the DOT.”

The tourism chief said the program will accelerate the country’s tourism recovery from the harsh impacts of the pandemic.

Through the DOT and SB Corp’s CARES for TRAVEL program, tourism MSMEs will have access to zero interest, no-collateral loans with a loan term period of up to four years, including a corresponding grace period of up to one year. The borrower MSMEs will only need to pay a one-time service fee, which is set at a maximum of eight percent for a 4-year loan.  

SB Corp will evaluate and process all loan applications of DOT-accredited MSMEs and local government (LGU)-accredited small-scale tourism-oriented enterprises to ensure their eligibility and will determine the loanable amount and terms in accordance with the CARES for TRAVEL program guidelines.

On the DOT’s part, it will regularly endorse to SB Corp a list of DOT-accredited tourism enterprises and LGU-accredited small-scale tourism-oriented enterprises that may be entitled to avail of business loans under the CARES for TRAVEL Program, subject to further evaluation by SB Corp.

MANILA BULLETIN

Small Business Corporation is ready to reopen its Covid 19 Assistance to Restart Enterprises (CARES ) Program online Borrower Registration System (BRS) on August 17, 2020.  Online loan applications received prior to this date are already on the final stages of processing, maintaining a queueing of first come first serve basis.

 

Tagged as CARES 2 to distinguish it from the initial run of the Program,  this upcoming CARES window will require all applicants to apply through SBCorp's online BRS found in this link  https://brs.sbgfc.org.ph . Manual applications  will no longer be accepted. 

 

The loan features of CARES 2 is the same as CARES 1 including loan limit, zero interest rate, service fee, grace period and repayment term.  The same identification and business registration documents are required.

 

However, for ease of loan release as well as to reduce physical contact and minimize community transmission of Covid-19, loan applicants under CARES 2 requesting loans more than P 30.0 thousand are required to have a bank account where SBCorp will deposit the loan release proceeds.  The bank account should either be Land Bank of the Philippines or any PESONet or InstaPay participating banks. 

 

For loan applications P30.0 thousand and below, electronic money accounts (EMA) such as GCash and PayMaya may substitute the bank account requirement.

 

The bank/EMA account must be under the name of the loan applicant.  Loan applicants will not be able to proceed with their online application without their bank/EMA account details.  Moreover, SBCorp will not allow a change in  bank/EMA account details during the loan release phase, relative to what is indicated in the online loan application.   

 

Loan applicants in CARES 2 will also be  required to submit the following during the online application:

 

• Three photos  of the enterprise’s operations and fixed assets, inclusive of business signage.  Image file size should be limited to less that 2 MB; and

 

• A 1 to 3 minutes video on the business’ operations, with the loan applicant explaining the enterprise’ products and services, buyers and suppliers, level of sales and number of employees.  For ease of uploading, the video may be cut into one minute sections.

A sub-system within the online BRS shall be provided for MSEs that are able to submit these SSS and BIR-filed documents. Those without these papers shall be evaluated via the main BRS channel.

In case the  loan applicant has an outstanding negative credit track record with any financial institution (FI) prior to the Covid-19 pandemic, an approved payment arrangement with subject FI should be first secured.  Otherwise, the loan application will be automatically denied.

 

Loan processing of applications of formally registered MSEs who are able to submit the following documents shall be completed in a few working days upon documents verification:

 

a.  SSS registration of employees in 2019, to serve as basis for number of employees prior to the Covid-19 pandemic; and

 

b.  BIR-filed financial statements for 2019, to serve as basis for volume of annual sales.  The subject financial report should indicate a positive net income.

 

Finally, loan applicants must ensure  the correct encoding of their first, middle and last names.  The name on the application must be the exact same name on the borrower’s government issued ID and supporting documents. Otherwise, the loan application shall be rejected.  The loan applicant will have to submit a new online application.

 

SBCorp is committed to deliver the much needed assistance of our MSEs as fast as we can while making sure that the barest minimum standards of our lending guidelines are observed and complied with.  This is the reason why we have further streamlined our processes towards this end.

 

For additional information, please contact the P3 Hotline at 8651-3333 for NCR and our toll free hotline 1800 10 651 3333 for those outside Metro Manila.

The Small Business Corporation (SB Corporation) has launched a P100 million loan facility for repatriated Overseas Filipino Workers (OFWs) due to the Covid 19 pandemic.

The program tagged as Helping the Economy Recover thru OFW Enterprise Start-ups (HEROES), is a component program of the  Pondo sa Pagbabago at Pag-asenso (P3) fund under the Department of Trade and Industry (DTI). This loan facility is aimed at helping repatriated OFWs rebuild their lives by providing opportunity  to become entrepreneurs.

Under the HEROES Program, returning OFWs who were retrenched due to the COVID-19 pandemic must present a video pitch of his/her  start-up business proposal outlining key components on the nature of business, product knowledge, management capability, market opportunity, competitive advantage, financial understanding and business continuity.

Loan proceeds should  strictly be used for working capital to start and sustain the business operations. The loan may be used for the  acquisition, production and sale of products and required inventory, necessary equipment and machinery for the business, payment of initial worth of operating costs incurred such as payroll, rent, utilities and fixed asset loans.

Under the program, OFWs may borrow a minimum of P10,000 to maximum of P100,000 free of interest and collateral. A service fee of 6% will be charged to loans with 24 months payment term and 8%  for loans with 36 months payment terms (inclusive of 12 months grace period).

The application process will start with the pre-registration for the on-line training with the Philippine Trade Training Center (PTTC)

After the training, qualified applicants will be given instructions on how to submit their loan applications with the following requirements:

Accomplished Loan Application Form

  • One (1) Government-issued ID with photo
  • OWWA Certification or proof of being a repatriated OFW
  • AVP of Business Plan
  • DTI Registration
  • Certificate of completion of an on-line training session for start-ups conducted by PTTC

 

Small Business Corporation (SB Corporation), a GOCC, warns the public on fraudulent practices that illegally cite or use the name and official logo of the Corporation, that upload misleading information on its management and governance bodies, and that misrepresent its lending policy, guidelines and processes for undue material gain.

Under the Pondo sa Pagbabago at Pag-asenso or P3 Program and under the other lending facilities offered by it, SB Corporation does not require nor allow representation of the loan applicant by brokers/advisors/consultants during the credit evaluation process.  Under its lending facilities via conduit financial institutions, the official list of accredited partners is published by SB Corporation.  

SB Corporation is administratively attached to the Department of Trade and Industry.  Representing DTI Secretary Ramon Lopez in the SB Corporation Governing Board is Undersecretary Blesila A. Lantayona who serves as Acting Chairman of the Corporation.  The President/CEO of SBCorporation is Ms. Ma. Luna E. Cacanando. 

Please report any irregularity to the P3 Hotline +632 8651-3333 or directly to SB Corporation thru sbcorporation@sbgfc.org.ph.

 

The Small Business Corporation (SB Corporation) was among the 2019 achievers in the Corporate Governance Scorecard (CGS) of all Government-Owned and Controlled Corporations (GOCCs), tallying an assessment score of 93.0 for its 2018 operations and securing the  7th spot out of 82 GOCCs assessed, a big leap from  its 2016 score of 58.50 and placing number 39 in the ranking.

The CGS of the Governance Commission for GOCCs (GCG) aims to annually assess the Corporate Governance performance of GOCCs and recognize well-governed GOCCs. The CGS assesses each GOCC’s governance policies and practices on Stakeholder Relationships (15%), Disclosure and Transparency (35%), and Responsibilities of the Board (50%).

The CGS helps the Governance Commission and GOCCs identify and assess the latter’s strengths and weaknesses compared to existing corporate governance provisions, and level of adherence to best practices and international standards of corporate governance. The CGS also works with the Performance Scorecard of GOCCs as it ensures improvement of transparency of GOCCs’ corporate governance initiatives and practices.

Under GCG Memorandum Circular No. 2015-07 instituted in October 2015, the Corporate Governance Scorecard for GOCCs was developed using a methodology benchmarked against the Principles of Corporate Governance of the Organization for Economic Co-operation and Development (OECD) and the ASEAN Corporate Governance Scorecard. The GCG in partnership with the Institute of Corporate Directors (ICD) established the CGS to raise the Corporate Governance standards and practices of GOCCs to be at par with the ASEAN state-owned enterprises.

CGS Scores of GOCCs for CY 2017

CGS Scores of GOCCs for CY 2018

The Small Business Corporation (SB Corporation) partnered with  three loan collection firms to aid the government lending agency in collection/recovery of accounts receivable payments from SB Corp micro, small and medium enterprise (MSME) borrowers in the Caloocan, Malabon, Navotas, and Valenzuela (CAMANAVA) area, Cavite, Laguna, Batangas, Rizal, and Quezon (CALABARZON) Region, Mindoro, Marinduque, Romblon, and Palawan (MIMAROPA) Region, and Bicol Region. To ensure efficient and seamless collection of payments from MSME borrowers SB Corp tapped the services of Receivers and Liquidators, Inc., Anchor Collection Services, and Alexis A. Molaer Law Offices.

“We welcome the partnerships and we thank our new partners for joining us and helping us in our loan collection activities. We hope that this relationship will be  beneficial for all parties and will last for many years,” SBCorp President and CEO Ma. Luna Cacanando said.

In photo are (from L-R): Receivers and Liquidators Vice President & COO Susima Yngson, SBCorp President and CEO Ma. Luna Cacanando, Anchor Collection Services President and General Manager Imelda Ebora and Alexis A. Molaer Law Offices General Manager Jonathan Molaer.

SB Corp to introduce 10 Credit Delivery Partners for P3 program

The Small Business Corporation will introduce 10 Credit Delivery Partners (CDPs) from Luzon to Mindanao to deliver fast and efficiently the Pondo sa Pagbabago at Pag-asenso (P3) program to micro entrepreneurs.

Department of Trade and Industry (DTI) Secretary Ramon Lopez said the 10 CDPs will make the delivery of the P3 program faster to micro entrepreneurs in rural areas to help spur economic activity in the countryside and provide employment to Filipinos.

“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,” said Sec. Lopez.

SB Corp., the micro financing arm of the Department of Trade and Industry, through the P3 program has extended financing assistance to over 89,000 micro entrepreneurs as the government's flagship program that aims to topple loan sharks has widen its reach throughout the country since its inception in 2017.

As of July 23, 2019, the SB Corp has released a total of P2.9 billion worth of loans to micro entrepreneurs through its 353 credit delivery partners that has reached rural and far-flung areas in the country.

SB Corp President and CEO Ma. Luna Cacanando welcomed the inclusion of the 10 Credit Delivery Partners, which she acknowledged would help in distributing the much-needed funds by micro entrepreneurs.

The Pondo sa Pagbabago at Pag-asenso (P3) program is a P1 billion loan financing program intended to give micro enterprises better access to finance, providing them an alternative to the informal or 5-6 scheme of lending.

Among the CDPs that will be introduced are rural banks and cooperatives: FICO Bank from Cauayan City, Isabela; GM Bank of Luzon from Cabanatuan City, Nueva Ecija; The New Rural Bank of San Leonardo from San Leonardo, Nueva Ecija; Bank of Florida from San Fernando, Pampanga; St. Francis Multi-purpose Cooperative from Malolos, Bulacan; MVSM Rural Bank from Marikina City; Cebu People’s Cooperative from Cebu City; Silangan Multi-purpose Cooperative from Davao City; Cantilan Bank from Surigao del Sur; and Yakap at Halik Multi-purpose Cooperative from Quezon Province.

Secretary Lopez reiterated that with the loan program, micro enterprises may find relief from overly expensive borrowings and afford cost-efficient and affordable form of loan that will help expand their businesses.

Meanwhile, the P3 program also has reached out to Maranao entrepreneurs through the Bangon Marawi initiative and has released P7.5 million to 457 Maranao borrowers. Likewise, soldiers and policemen who were either wounded or killed in action during the Marawi siege were also provided assistance with a total of P27.71 million released to 335 soldiers and policemen, and their families.

Under the P3 Program, a micro enterprise can borrow between P5,000 up to P200,000 depending on its business need and repayment capacity with no collateral requirement.  Interest rate and service fees, all in, do not exceed 2.5% monthly.

The P3 Program serves as an alternative to the P30 billion “5-6” money lending industry that charges 20% nominal interest rate to MSMEs. END

The Small Business Corporation (SB Corp) recently added Koop King Multi-purpose Cooperative to its growing number of partner financial institutions (PFIs) for the Pondo sa Pagbabago at Pag-asenso (P3). As of May 31, 2019, there are over 400 PFIs and more than 80,000 micro borrowers nationwide.

Under the P3 Program, a micro enterprise can borrow P5,000 up to P200,000 depending on its business need and repayment capacity without collateral. For the loans, the interest rate and service fees are capped at 2.5 percent per month.

In photo are (from L-R) Koop King Multi-purpose Cooperative Head of Operations Department Ramil C. Balais, SB Corp. Financing Sector Group Head Lourdes Rosario Baula, Koop King Multi-purpose Cooperative General Manager Athena Caragay and Koop King Multi-purpose Cooperative Treasurer Winkle Tom DC. Moreno. (Published June 3, 2019)

Small Business Corporation (SB Corp.), the financing arm of the Department of Trade and Industry (DTI) partners with the country’s pioneer in outsourced bills payment collection industry, CIS Bayad Center, Inc. for its loans payment collection.

“Being the pioneer in outsourced bills payment collection, we have earned the confidence of the paying public; With Bayad Center's network, SB Corp’s clients can now pay their loan amortization conveniently at any Bayad Center Branches and Authorized Partners nationwide,” Bayad Center President & CEO Manuel L. Tuason explained.

Through this partnership, SB Corp loan clients can now pay their regular loan amortization at the nearest Bayad Center starting this June.

“Having an accessible and reliable payment facility is very important to the MSME sector. With this recent partnership, our MSME clients will have access to a payment facility near them with longer business hours than that of most banks,” SB Corp President and CEO Ma. Luna E. Cacanando says.

Cacanando also added that with the Pondo sa Pagbabago at Pag-asenso (P3) Program in full swing, SB Corp needs a loan collection partner that is known to many and is present even in the rural areas.

The P3 Program now has nearly 400 conduits and more than 80,000 microborrowers nationwide.

Under the P3 Program, a microenterprise can borrow P5,000 up to P200,000 depending on its business need and repayment capacity without collateral.

For the loans, the interest rate and service fees are capped at 2.5 percent per month.

In photo (from left to right) are CIS Bayad Center, Inc.  SVP & COO Francispito P. Quevedo, CIS Bayad Center, Inc.  President & CEO Manuel L. Tuason, SB Corp President and CEO Ma. Luna E Cacanando and SB Corp Board of Director Santiago Lim. (Published May 20, 2019)