The Trade Department and its micro-financing arm Small Business Corp. have finalized the implementing guidelines that will help micro-entrepreneurs across the Philippines get access to financing.
“We’re very much excited because this is our vision in the agency—to help underprivileged by giving better chances to elevate from poverty. Through this micro-financing program, those from the bottom of the pyramid will get to climb the ladder by expanding their businesses,” said Trade Undersecretary Zenaida Maglaya.
The department is set to introduce the national conduits and local micro-financing institutions for the Pondo sa Pagbabago at Pag-asenso program.
P3, is a P1-billion financing program designed to give MSMEs better access to finance and to reduce their cost of borrowing. The fund will also give priority to the country’s 30 poorest provinces.
Following President Rodrigo Duterte’s directive to replace the “5-6” money lending system, P3 is also seen to help stabilize supply and cost of commodities in public markets, encourage small entrepreneurs to expand their businesses and offer employment and generate income for Filipinos.
The P1-billion fund of the P3 program from the Office of the President will be coursed through SB Corp., which will accredit partner institutions such as non-bank MFIs, cooperatives and associations to serve as conduit for the P3 funds.
“We’re very grateful that this program has become a reality. MSMEs now have an option to avail of cheaper funds to expand their business,” Maglaya said
The Trade Department launched the P3 Program in Tacloban in Leyte on January 25, San Jose, Occidental Mindoro on January 27, and Alabel, Sarangani on January 30.
The primary beneficiaries of the P3 Program are micro-enterprises and entrepreneurs that do not have easy access to credit. These include market vendors, agri-businessmen and members of cooperatives and industry associations.
P3 will also make it easy for entrepreneurs to gain access loans since it will only require minimal documentation requirements.
