Government allots P 1 billion to finance micro-enterprises in the country

BALANGA CITY, Bataan – The Department of Trade and Industry (DTI) has disclosed that  President  Rodrigo  R. Duterte  has earmarked  P 1 billion in the 2017 General Appropriation Act (GAA) for financial assistance and subsidy to microenterprises under the  Pondo sa Pagbabago at Pag-asenso (P3) program .

Ms. Thess Magtanong, information officer of DTI provincial office here, said government micro-financing program for micro, small and medium enterprises  (MSMEs’) which  is also known as P3 aims to provide microenterprises an alternative source of financing that is made available at reasonable cost that include market vendors, agri-businessmen and members of cooperatives, industry associations and co-operators.

According to Ms. Magtanong, the Small Business Corporation (SBC), an attached  agency of DTI will oversee the management and monitoring of the P3 fund using its lending network and DTI Negosyo Centers in reaching out to the program beneficiaries.

Loan amounts to end-borrowers range from P 5,000 to P 100,000 at maximum interest rate of 2.5 % per month with no collateral requirements.

Ms. Magtanong stressed that the DTI secretary shall approve P3 program mechanics and components including the selection criteria for beneficiaries in national coverage giving priority where absolute number of indigents and incidence of poverty are high as identified in the latest official poverty statistics of the Philippines Stat5istics Authority.

The P3 funds are still to be drawn from Department of Budget and Management (DBM) while SBC is working out the operating mechanics with some members of the Microfinance Council of the Philippines, Incorporated (MCPI) and the National Confederation of Cooperatives Incorporated (NATCO).

The SBC  will conduct  pilot tests  in three provinces in the country  before  the program will be launched nationwide, namely:  San Jose, Oriental Mindoro; Tacloban City, Leyte and Arabel, Sarangani.