SB Corp increases 13-month loan facility to P500 M – Manila Bulletin
SB Corporation, the government’s micro-finance arm attached to the Ministry of Trade and Industry, more than doubled on the 13the low rate loan facility of 500 million pesos to accommodate up to 7,000 micro and small businesses in difficulty.
SBCorp. Vice President Roberto Bastillo announced at Laging Handa Malacanang’s public lecture that they have increased the loan facility to 500 million pesos as the initial 200 million peso fund from the Bayanihan 2 allocation may not be enough to pay the 13e months salary of employees of micro and small establishments.
Depending on the amount of loans that businesses will benefit from, Bastillo said the loan facility should accommodate between 6,000 and 7,000 micro and small businesses with 20 employees and less.
At 10,000 P to 12,000 P 13e month’s salary per employee, Bastillo said that a struggling company can benefit from a loan facility of 120,000 P. Bastillo, however, explained that based on guidelines from the Ministry of Labor and Employment ( DOLE), on the 13the the monthly salary is prorated.
He further explained that only companies listed in the DOLE database from March 20, 2020 to October 15 of this year will be eligible to apply to the 13e one month subsidized loan facility. With limited time before Christmas, Bastillo said, they must rely on the validated DOLE database to facilitate loan processing.
Since last year, the DOLE had advised companies affected by the pandemic to inform the agency of their situation. He noted that 11,000 micro and small businesses are listed in the DOLE database. These are companies that have taken advantage of the flexible work week arrangement of four, three or two days due to the pandemic.
In addition to inclusion in the DOLE database, micro and small businesses affected by the pandemic must also submit a barangay permit for loans up to P 50,000 and a mayor’s permit for loans over P 50,000. Applicant companies will also need to complete the SB Corp. application form. in line.
SB Corp. will open loan applications starting next week, from November 2 to December 9 of this year. This will give the agency enough time to process requests and release funds in time for Christmas.
Although loan processing transactions have a processing period of up to 20 days, Bastillo said SBCorp is committed to speeding up processing in just 7-10 days.
The SBCorp 13e The subsidized month loan facility is payable in 12 months with a 3 month grace period. It bears no interest, only a nominal service charge and other administrative costs.
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