P1 billion Enterprise Rehabilitation Financing facility for businesses impacted by Covid-19 lockdown to be prepared by the Small Business Corporation

To provide assistance and support to micro and small businesses affected and cushion the economic impact of the spread of Covid-19 virus in the country, the Small Business Corporation is setting up a P1 billion Enterprise Rehabilitation Financing facility under the Pondo sa Pagbabago at Pag-asenso (named Covid19 P3-ERF).

The facility will be implemented once the Community Quarantine declaration is lifted by the National Government and/or respective Local Government Units.

Trade Secretary Ramon Lopez explained that the P3-ERF facility is part of the economic relief program of President Rodrigo Duterte for small businesses greatly affected and further marginalized by the Covid-19 virus epidemic.

The SB Corporation, an agency under the Department of Trade and Industry, said the ERF loan fund is open to 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.

Micro enterprises with asset size of not more than P3 million may borrow P10,000 up to P200,000 and small enterprises with asset size of not more than P10 million may borrow a higher loan amount but will not exceed P500,000.

The loan will be used to help businesses stabilize and recover from its losses. Specifically, the following purposes are qualified:

1) Updating of loan amortizations for vehicle loans or other fixed asset loans of the business;

2) Inventory replacement for perishable stocks damaged;

3) Working capital replacement to restart the business.

Interest rate will be at 0.5% per month (discounted basis); and grace period on payments will be given until such time that the economic crisis has abated.


Stay updated with news and information from the Department of Trade and Industry by visiting their website at https://www.dti.gov.ph.

Balikbayan Media Center

Balikbayan Magazine's Media Center serves an audience in 60 countries and 101 cities throughout the World to ignite, drive, and fuel the economic development, progression, and modernisation of the Philippines. Our Media Center curates only the most critical, vital, useful, entertaining, and sometimes amusing information released from both the public and private sector. Our editorial team strongly believes that a well-rounded and well-informed society is a thriving society.

Spotlighting the growth, development, and progression of the Philippines since 2009. Balikbayan Magazine is a publication of the Asian Journal Media Group.

Copyright © 2009-2023 Asian Journal Media Group.
All Rights Reserved.