The Small Business Corporation (SBCorp) announced the opening of the Enterprise Rehabilitation Financing (ERF) program for typhoon Odette-affected entrepreneurs operating in areas under a state of calamity.

The borrowers are classified as existing, new, and tourism micro, small, and medium (MSMEs) as announced by the SBCorp on February 14.

Cris Dile, SBCorp desk officer, told Palawan News they are open to all MSME applications for the loan program.

In December, the Department of Trade and Industry (DTI) MIMAROPA reported that about half of the 400 MSMEs in Palawan Palawan have been either severely or partially damaged by the typhoon. The projected cash required for MSMEs recovery was estimated at roughly P31 million during the assessment.

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“Hanggang maubos ang funds allocate—walang specific amount (allocated) per province,” he said.

The maximum loanable amount for existing borrowers is P800,000. It is payable monthly for up to three years and repayment shall start after the maturity of the existing loan. The interest rate is six percent per annum effective interest rate (EIR). No need for submission of additional documents, except for online loan registration and application for the new loan, SBCorp stated.

For new borrowers, the loanable amount is up to P300,000. The basis of the loan amount is up to 50 percent of the value of damaged inventory and fixed assets of the business, as assessed by the SBCorp Account Officer based on a virtual project interview but not to exceed P300,000. It is payable for up to three years, inclusive of up to a 12-month grace period, with six percent per annum EIR.

The requirements are a barangay permit in 2021 for loans of not more than P50,000, or a mayor’s permit in 2021 for higher loans. Or certification by the Department of Trade and Industry (DTI) or by a local government unit in the case of lost documents.

For tourism MSMEs, where existing and new MSMEs may borrow, the maximum loanable amount shall not exceed P5 million, inclusive of an existing loan. The basis of the loan amount is up to 50 percent of the value of the damaged inventory and fixed assets of the business, as assessed by the SBCorp Account Officer based on the virtual project interview unless a lower loan amount is requested by the borrower.

It is payable monthly for up to five years, inclusive of a grace period of up to 24 months. The interest rate is based on the Bayanihan CARES service fee structure, which ranges from four to eight percent depending on the loan term.

For new borrowers, a barangay permit in 2021 will be required for loans of no more than P50,000, or a mayor’s permit in 2021 for loans of more than P50,000, along with the DTI permit. In the event that documents were destroyed by the typhoon, a certification by the DTI or by the LG that the business was registered will suffice.

In addition, for loans exceeding P300,000, proof of BIR registration, proof of sales and other information may be required by the SBCorp account officer during the virtual project inspection and interview.

The ERF for microenterprises is one of the loan facilities of SBCorp under the P3 program or Pondo sa Pagbabago at Pag-asenso that covers all natural and man-made calamities which affect microbusinesses in vulnerable areas.

The online application portal for interested MSMEs is through www.bayanihancares.ph. For other information needed, applicants may send an email to communicationstream@sbcorp.gov.ph

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is one of the senior reporters of Palawan News. She covers agriculture, business, and different feature stories. Her interests are collecting empty bottles, aesthetic earrings, and anything that is color yellow.