In order to support micro and small businesses affected by the economic impact of Covid19 in the country, the Small Business Corporation under the guidance of the Department of Trade and Industry is setting up a P1.0 billion Enterprise Rehabilitation Financing facility under the Pondo sa Pagbabago at Pag-asenso (Covid19 P3-ERF for short).  The facility will be implemented once the Community Quarantine declarations are lifted by the National Government and/or respective Local Government Units.

The ERF loan fund will have the following features:

  • Micro and small enterprises with at least one year continuous operation prior to March 2020, and whose businesses suffered drastic reduction in sales during the ensuing epidemic may access the loan fund;
  • Micro enterprises with asset size of not more than P3.0 million may borrow P10.0 thousand up to P200.0 thousand;
  • Small enterprises with asset size of not more than P10.0 million may borrow a higher loan amount but not to exceed P500.0 thousand;
  • The loan shall be used to help the enterprise stabilize or recover from its losses.Specifically, the following purposes are qualified:
    • Updating of loan amortizations for vehicle loans or other fixed asset loans of the business;
    • Inventory replacement for perishable stocks damaged;
    • Working capital replacement to restart the business
  • Interest rate shall be at 0.5% per month (discounted basis); and
  • Grace period on payments shall be given until such time that the economic crisis has abated.

According to DTI Secretary Ramon Lopez, the P3-ERF facility is part of the economic relief program of the administration of President Rodrigo Roa Duterte for small businesses further marginalized by the Covid19 epidemic.

The Small Business Corporation (SB Corporation) expressed continued support to the Cebu People’s Multi-Purpose Cooperative (CPMPC) as its Credit Delivery Partner (CDP) for the Pondo sa Pagbabago at Pag-asenso (P3) Program. CPMPC reported a total P2.56 million loans released to 124 microenterprise beneficiaries in just three months (November 2019 to January 2020). SB Corporation through CPMPC aims to generate P2 million P3 loan portfolio per month for each of the cooperative’s 16 satellite offices.

Present during the update meeting are (seated L-R) SB Corporation South Luzon Group Head Ronald Inciong, Financing Sector Head Ma. Lourdes Baula, SB Corporation President and CEO Ma. Luna Cacanando, CPMPC CEO Macario Quevedo, CPMPC COO Brian Yap, SB Corporation MIS Department Manager Marc Quincy Talagtag and SB Corporation Corporate Support Sector Head Rowena Betia (Standing L-R) SB Corporation Information Technology Group Head Evelyn Felias, CPMPC Financial Officer Eric Abistado,Training Dept Manager Jacob Layan, Credit Dept Manager Melanie Baclayon, Manila Branch Operator Ulysses Mar Josef, and Executive Secretary Nelson Rabaja.

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 with an effective interest rate of not more than 2.5% per month (based on diminishing balance).  The P3 Program serves as an alternative to the P30 billion “5-6” money lending industry that charges 20% interest rate to microenterprises.

As of January 2020 the P3 program has extended a total of P5.1 billion in loans to 124,374 micro enterprises and has partnered with 418 partner financial institutions nationwide.

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)

The Small Business Corporation (SB Corp) recently signed an agreement with five Cavite rural banks on the latter’s capacity building program on  Risk-based lending  for micro, small and medium enterprises (MSMEs). SB Corp’s capacity building program on Risk-based SME lending strategy  is a consultancy program aimed at capacitating  rural banks and other financial institutions in  developing and implementing their own internal risk rating, credit risk management,loan classification, provisioning, pricing and loan documentation systems with the end-goal of improving their capability to lend to MSMEs and increasing their MSME loan portfolio. In photo (from L-R) are: SB Corp Executive Vice President Melvin Abanto; Cavite United Rural Bank Corp. President Armalita Lazaro; Masuwerte Rural Bank of Bacoor, Inc. President and Chair Atty. Ma. Eileen Giron; Rural Bank of General Trias, Inc. President Cesar Arnaldo, Jr.; SB Corp President and CEO Ma. Luna Cacanando; Bangko Noveleta, Inc. President Atty. Rafael Rodriguez and Manager Josmin Alvarez; Bangko Mabuhay, Inc. Assistant Manager and Comptroller Imelda Montenegro; and Bangko Mabuhay, Inc. President and General Manager Edwin Fojas. (Published April 22, 2019)

SB Corp., UP Los Baños ink pact opening MSME Finance Institute. The Small Business Corporation (SB Corp) forged a partnership with the University of the Philippines – Los Baños (UPLB) to help boost an inclusive and integrated entrepreneurial and innovation ecosystem for Filipino entrepreneurs through the MSME Finance Institute at the State University’s campus in Los Baños, Laguna. The MSME Finance institute housed athe the UPLB Center for Agribusiness Center for Entrepreneurship (UPLB-ACE) will serve as a knowledge center for MSMEs.

The institute will serve as venue for  providing entrepreneurs continuous access to training programs, technology, knowledge and information, research and development network, and infrastructure. Throughout different phases of the enterprise, appropriate funding will also be made available in the form of loans or equity financing.

Under the agreement, SB Corp will provide financial institutions lending to MSMEs with capacity building programs on  risk-based lending technology and MSMEs with  financial education; access to industry linkages through DTI’s network; equity financing facility; low-cost lending through the Pondo sa Pagbabago at Pag-asenso (P3) Program. (Published April 22, 2019)

At the SB Corp-UPLB MOA ceremonial signing and facility inauguration are (from left to right) UPLB Technology Transfer and Business development Office Director, Glen Baticados; Department of Trade and Industry (DTI) Management Services Group Undersecretary Ireneo Vizmonte, SB Corp President and CEO Ma. Luna Cacanando, UPLB Vice Chancellor for Planning and Development Marish S. Madlangbayan, Ph.D.; Dean  College of Economics And Management Isabelita Pabuayon and UPLB Department of Agribusiness Management and Entrepreneurship Director Normito Zapata Jr.