Gov’t mulls P50.8-billion subsidy program for MSMEs
MANILA, Philippines — The government is studying the possible rollout of a P50.8-billion wage subsidy program to help small businesses and their workers affected by the Luzon-wide enhanced community quarantine (ECQ) imposed to stop the spread of COVID-19.
In his third weekly report to Congress on the use of his additional powers to address the COVID-19 crisis, President Rodrigo Duterte said the Department of Finance (DOF) is “evaluating the proposal to establish a Small Business Relief Program to help some 1.5 million small business in the formal sector and their 3.4 million workers affected by the ECQ.”
“The economic team is planning to roll out a wage subsidy program for MSMEs, which will provide relief for the formal sector and middle class workers who are not covered by the ESP [emergency subsidy program],” Duterte said in his 27-page report.
The program may involve a wage subsidy of up to P8,000 per eligible worker for up to two months, which will cost the government around P50.8 billion over the whole period.
The Finance department is also studying the proposal to grant small business affected by the COVID-19 pandemic a credit guarantee to provide them easy access to bank financing, Duterte said.
Out of the 57 lending conduits identified by the Department of Agriculture, Duterte said 36 have already agreed to participate in the implementation of the Expanded SURE-Aid and Recovery Project which aims to give small farmers and small enterprises zero-interest loans to cope with the health emergency.
“To date, 16 out of the 295 targeted micro and small enterprises have signified their intent to avail of the program,” Duterte said.
Meanwhile, the President likewise reported that the Bureau of Treasury is working with the Social Security System (SSS) to implement a proposed P45-billion wage subsidy assistance for employees of eligible businesses.
Duterte, however, did not elaborate on the planned wage subsidy assistance.
Edited by JPV
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