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.

MANILA, Philippines — Small Business Corporation, the financing arm of the Department of Trade and Industry (DTI) has partnered with ePLDT Inc. subsidiary Curo Teknika (CuroTek) to establish a customer service hotline for the Pondo sa Pagbabago at Pag-asenso (P3) Program.

In a statement, Small Business Corp. said the partnership with CuroTek is seen to better serve microentrepreneurs.

Under the partnership, Curo Teknika will provide SB Corp. with contact center solutions for the P3 Program from Mondays to Fridays, except holidays, from 8 a.m. to 5 p.m.

The government is implementing the P3 Program to give microenterprises access to affordable financing.

The program is also in line with President Duterte’s directive to remove the “5-6” money lending system.

Under the P3 Program administered by SB Corp., 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.

With the partnership with CuroTek in place, microenterprises who want to avail of loans under the P3 Program can do so by speaking with a contact center agent through the P3 Hotline 651-3333.

“This partnership affirms the commitment of the government to deliver financing to microenterprises that is much cheaper than 5-6 lending,” SB Corp. president and chief executive officer Ma. Luna Cacanando said.

As the P3 Program is now in full swing, she said there is a need for SB Corp. to have a system in place wherein microenterprises can inquire and get answers immediately.

The P3 Program now has nearly 300 conduits and more than 60,000 microborrowers. (Published April 4, 2019)

A Senate panel pushed a bill that seeks to provide microenterprises loans with cheaper interest as an alternative to the “5-6” money lending scheme.

The Senate committee on trade, commerce and entrepreneurship has endorsed for plenary deliberations and approval the Senate Bill 2017, which seeks to institutionalize the government’s “Pondo sa Pagbabago at Pag-asenso” program or P3.

Sen. Aquilino Pimentel III, chair of the committee and author of the measure, said the institutionalization of the P3 program would respond President Duterte’s directive to replace the “5-6” scheme and discourage small businesses to loan from informal lenders.

The P3 program is handled by the Small Business (SB) Corporation, an agency attached to the Department of Trade and Industry.

SB 2017, among others, seeks to “provide an affordable, accessible and simple microfinancing program for the country’s microenterprises, especially those in the poorest provinces.”

The measure, hence, creates the “P3 Fund,” which shall be made available to qualified microenterprises as defined by Republic Act No. 6977, or the Magna Carta for Micro, Small, and Medium Enterprises.

The fund shall be accessible through the SB Corp., or through partner financial institutions, such as rural banks, cooperatives, or lending institutions that are licensed by the Central Bank, Cooperative Development Authority or the Securities and Exchange Commission.

Under the bill, loans would have lower interest, at 2.5 percent per month; and would require no collateral.

The Senate is expected to tackle the measure when it resumes on January 14.

President Duterte had repeatedly vowed to end the “5-6” lending scheme, which he described as a debt trap for poor Filipinos.

The practice involves informal lenders, who usually charge borrowers at least 20 percent monthly interest rate.

Pimentel, in the bill, on the other hand, recognized that businesses still opt to borrow money from them “because of the voluminous and stringent documentary requirements and the need for collaterals when borrowing from formal sectors.”

In 2017 and 2018, Congress had allotted P1 billion for the P3 program.

 

MANILA BULLETIN

Published December 31, 2018, 4:39 PM

By Vanne Elaine Terrazola

 

MANILA, Philippines — Small Business Corp. (SB Corp.) plans to set up the first microfinance institute  to support efforts of the Department of Trade and Industry (DTI) to mentor and promote the growth of micro, small and medium enterprises (MSMEs). 

In a statement, SB Corp. president and chief executive officer Ma. Luna Cacanando said the MSME Finance Institute would help address the capacity building and mentoring needs of MSMEs. 

Through the MSME Finance Institute, SB Corp. aims to enable MSMEs to assess and evaluate their business needs, effectively manage their business, and come up with an enhancement plan. 

The MSME Finance Institute will have an advisory council composed of MSME advocates and experts including former National Economic and Development Authority director general Cielito Habito, former DTI undersecretary for MSME Development and former SB Corp. chairman and chief executive officer Zorayda Amelia Alonzo, and former Philippine International Trading Corp. president and chief executive order Ma. Lourdes Baua.

The advisory council would provide guidance in setting the thrust of the MSME Finance Institute. 

In addition, the advisory council will share expertise and information in addressing issues to be faced by the institute. 

SB Corp. serves as the microfinancing arm of the DTI. 

The MSME Institute forms part of interventions being implemented by the DTI to promote the growth and advancement of MSMEs. 

Trade Secretary Ramon Lopez earlier said there was need to continue providing support to MSMEs as programs being implemented by the government have led to the growth in the number of enterprises. 

As of November, there were 1.39 million business establishments registered in local government units, up from 900,000 last year. 

 

Philippine Star, December 24, 2018

Over 250 micro financing institutes (MFIs), serving as conduits for the Pondo sa Pagbabago at Pag-asenso (P3) Program to micro enterprises, gathered on 26 November 2018 at the Philippine International Cultural Center (PICC) in Pasay City to discover areas on how to efficiently deliver loans to micro enterprises.

https://businessmirror.com.ph/dti-chief-house-member-press-senate-to-pas...

https://www.manilatimes.net/loan-releases-under-p3-program-top-p2b/474150/

http://www.pna.gov.ph/articles/1054980

https://ptvnews.ph/dti-disburses-p1-7-b-as-msme-loans/

https://www.malaya.com.ph/business-news/business/p3-disburses-p17b-loans

https://www.youtube.com/watch?v=SqH1OJFgaw0

 

The Small Business Corporation (SB Corp.), the financing arm of the Department of Trade and Industry, has started releasing loans under the Pondo sa Pagbabago at Pag-asenso (P3) program to micro enterprises in Boracay Island.

Trade Secretary Ramon Lopez said the first batch of loans through the P3 program is intended to support micro entrepreneurs during the island’s six-month closure since April 26, 2018.

"Helping the people of Boracay Island and local tourism during this period means ensuring their micro entrepreneurs have access to available funds to support their businesses," Lopez said.

The first batch of seven micro entrepreneurs from Boracay were granted Php30,000 loans each through P3. Payment varies from monthly or semi-monthly for six months to one year, depending on the borrower's ability to pay, Lopez explained.

The P3 Program is the national government's initiative which provides affordable, low cost, and easy-to-pay loans to micro enterprises to help them expand their businesses and provide an alternative to 5-6 lending.

DTI is a member of the Working Group on employment and livelihood and the lead agency in the establishment of the Operations Center/ One-Stop Shop in Boracay Island.

SB Corp. President and CEO Ma. Luna Cacanando said that micro entrepreneurs can use the loan for their businesses' expansion while residents await the reopening of the island to tourists on October 26, 2018.

“We will assist more micro entrepreneurs in the island through the P3 program to ensure that their businesses will be quick to recover and ready once the island reopens to tourists,” Cacanando stressed.

While the island has yet to reopen, micro entrepreneurs selling in Boracay will be given the opportunity to continue their businesses through alternative market outlets in nearby resorts and pasalubong centers.

The loan program is in line with President Duterte's directive to provide intervention to displaced workers and entrepreneurs who will be affected by the island's six-month closure. END