BORNGAN, January 27, 2018–The Department of Trade and Industry’s Micro fund program, Pondo sa Pagbabago at Pag asenso or P3 is already being implemented in the province.
According to Merly Nalic, Negosyo Center business counselor of DTI Eastern Samar, two micro finance institutions or MFI’s were approved by the Small Business Corporation (SB Corp), the micro financing arm of DTI, to implement the program.
Taytay sa Kauswagan Inc. started processing and releasing loans to clients last November 2017, while Lanang Multi Purpose Cooperative is still waiting for funds to be released by the SBC. Taytay has a credit line of P10M and Lanang has P5M.
To qualify for the loan, a business must be in operation for two years, licensed and registered with the DTI. The MFI will conduct an assessment of the applicant to determine the amount they can borrow.
A business owner can borrow from a minimum of P5,000 to a maximum of P200,000 at 2.5% interest plus a service charge of 2% every month.
Ms. Nalic further said that businessmen who are registered in the DTI’s Barangay Micro Business Enterprise (BMBE) can also avail of this program. Those in the registry are owners of businesses with capital and assets not exceeding P3M.
Aside from the loans, those in the BMBE list are exempt from implementing the minimum wage and from filing their income tax, provided they apply for exemption at the BIR.
The P3 was conceptualized following President Duterte’s orders to replace the 5-6 lending system.
The program will provide “micro enterprises an alternative source of financing that is easy to access and available at a reasonable cost”. (Eden Cidro/Este News)