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The Department of Trade and Industry (DTI) is gearing up to launch a lending program for micro-entrepreneurs, accessible through e-wallet platforms, as part of its ongoing commitment to scale up businesses.
In a chance interview on Thursday, March 27, DTI Secretary Cristina Roque said the program would particularly be tailored to sari-sari stores and wet market stores, which she cited as the “backbone” of the country’s economy.
Roque noted that the agency has been monitoring these micro-enterprises, where they found that financing is the sector’s most crucial need.
Small Business Corp. (SBCorp), the financing arm of the DTI, currently offers various lending programs for micro, small and medium enterprises (MSMEs).
However, the DTI chief observed that small store owners often have difficulties completing the necessary requirements to obtain a loan.
As such, the loan program specific for micro-entrepreneurs will be accessible through digital platforms such as GCash and Maya.
This is expected to introduce an “easier” option for entrepreneurs to obtain loans without the hassle often associated with conventional lending schemes, helping them further expand and scale up.
Roque did not disclose the borrowing limit for the program, noting that this will be divulged with the signing of the memorandum of understanding (MOU) expected during the first week of April.
This will be in partnership with the state-owned Development Bank of the Philippines (DBP), with an initial funding of ₱500 million.
She said the fund is expected to grow even further, as companies such as the SM Group and Ayala Corp. expressed their interest to be involved in the program.
The loan program will be piloted in Cebu City, without a confirmed date yet, followed immediately in Manila.
“Once we launch it, once we do the MOU, [micro-entrepreneurs] can already avail of it. It doesn't matter where they are,” Roque told reporters.
The Trade Secretary said the DTI is committed to the firm belief in every Filipino’s potential and capacity to grow their business on the national and global stage.
“As we look ahead, let us recommit ourselves to this vision that no Filipino with a dream should be left behind. That every business, no matter how small, deserves a chance to grow and to shine,” Roque emphasized.
“Under President Ferdinand R. Marcos, Jr., we believe that the Filipino is worth starting businesses for,” she continued.
Based on DTI data, MSMEs comprises 99.5 percent of the business establishments in the Philippines. It also accounts for 62 percent of the workforce.
