Recto urges MSMEs to avail of P4-billion emergency loan

MANILA, Philippines — Executive Secretary Ralph Recto on Friday urged micro, small, and medium enterprises (MSMEs) shaken by the impact of the Middle East conflict to avail themselves of the government’s P4 billion emergency loan.

The loan was rolled out by the Department of Trade and Industry, through its Small Business Corp. (SB Corp.), early this month as part of the comprehensive aid package approved by President Ferdinand Marcos Jr. to help business owners ride out the current global oil shortage.

READ: Flood control corruption cripples PH business confidence

“As part of the safety nets not only for the highly vulnerable sectors but for the middle class and small entrepreneurs as well, President Marcos has cleared a program for MSMEs in distress as a result of the global oil shock to avail of easy loans ranging from P30,000 to P20 million each for them to manage rising logistics costs, cash flow constraints and supply chain disruptions,” Recto said, as quoted in a press release.

“The president has envisioned this loan program as a lifeline to MSMEs against the backdrop of limited access to financing, more so at this time of economic challenges sweeping the globe,” he added.

The loan has a one-year grace period, which means that business owners do not have to pay either interest or principal in the first year of their loans. 

They can apply for loans online, and for those with the complete required documents, the processing time is expected to be finished in 7 to 10 days. /mr /atm