DTI, SBC launches P3 Program in Tacloban
Tacloban City – Some 940,000 pesos worth of micro-loans were released to 26 pilot microenterprise beneficiaries of the Pondo Sa Pagbabago at Pag-asenso (P3) during its launching on Thursday, February 9 at the Tacloban City Public Market.
Mayor Cristina G. Romualdez was represented by City Administrator Irene Chiu during the launching of the funding program in collaboration with The Department of Trade and Industry (DTI) and the Small Business Corporation (SBC).
SBC President Bartholomew Brillo Reynes and DTI Regional Director Cynthia Nierras awarded loan approvals and loan proceeds to beneficiaries during the launching. The beneficiaries engages in meat, vegetable and fruit vending in stalls located at the Tacloban City Public Market. A number of Sari-sari (Variety) store owners also availed of loans ranging from 30,000 to 50,000 pesos.
Reynes said P3 is a funding program that will provide microenterprises an alternative source of financing that is easy to access and available at a reasonable cost.
He added that the program is aimed at boosting the development of the Micro, Small and Medium Enterprise (MSME) sectors.
Nierras said the P3 program is in line with President Rodrigo R. Duterte’s directive to provide loans for micro-entrepreneurs at a very affordable interest rate; an alternative to creditors who impose high interest rates. She likewise thanked the City Government for providing a space at the MASA Office for use as P3 Lending Office.
The director also disclosed that they will be working closely with the City Market administration in monitoring beneficiaries.
Loan amounts range from P5,000 to P100,000, at a maximum interest rate of 2.5% per month, with no collateral requirement.
One mode of the P3 Fund delivery is through wholesale lending where SBC will partner with “conduits” composed of selected microfinance institutions and cooperatives.
Minimum requirements for loan application include business permit, Certificate of good standing (to be given by the market administration) and valid ID; processing takes one day provided documents are complete.
The 2017 General Appropriations Act (GAA) included P 1.0 Billion for financial assistance subsidy to microenterprises under the P3 Program.
Currently the SBC is working out the operating mechanics with members of the Microfinance Council of the Philippines Inc. (MCPI) and of the National Confederation of Cooperatives Inc. (NATCCO). The program has been piloted in three areas in the country. – HENRY JAMES G. ROCA/CIO, Photos by MARIO PAPURAN/CIO