The Department of Trade and Industry (DTI) and other government agencies are thinking of ways to extend a helping hand to help the micro, small, and medium enterprises (MSMEs) bounce back from the economic impact brought about by the COVID-19 pandemic.
One of the initiatives of DTI is the reopening of Small Business Corporation’s (SB Corporation) COVID-19 Assistance Restart Enterprises Program (CARES Program). Launched on August 17, 2020 under the Pondo sa Pagbabago at Pag-asenso (P3), the new CARES Program (CARES 2) is a loaning service that provides a shot in the arm to MSMEs which want to restart their businesses or to cope with the challenges of the global healthcare crisis.
P3’s CARES 2 Program is similar to the previous CARES Program with loan limit, zero interest rate, service fee, grace period, and repayment term.
MSMEs with total assets of less than P3 million can avail of a loan from P10,000 to P200,000 while those with total assets not exceeding P15 million can get a loan of up to P500,000.
The payment term for loans of less than P50,000 is 18 months including a 6-month grace period while for loans of more than P50,000, the payment term is 30 months also including a 6-month grace period.
Moreover, 6 percent of the approved loan amount will be charged as service fee if the loan is paid within 18 months, and in instances where the loan term exceeds 18 months, the service fee will be 8 percent of the approved loan amount.
P3’s CARES 2 Application
Currently, only online applications are available through the SB Corporation’s Borrower Registration System (BRS), which is available on this link: https://brs.sbgfc.org.ph.
Applicants who will avail of a loan of less than P30,000 will be required to have an upgraded PayMaya account or a fully verified GCash account. Applicants who will borrow more than P30,000 should have an account with the Land Bank of the Philippines or any bank that is accredited by PESOnet or InstaPAY, if not, they will be required to open one.
Other requirements include the issuance of post-dated checks for loans above P100,000 and a co-borrower for applicants more than 65 years old. Co-borrowers should be a member of the applicants immediate family and should have a source of income.
For more questions regarding the CARES 2 program, visit https://www.dti.gov.ph/.