400 Cordillera businesses avail of gov't rehab loan

BUSINESS AS USUAL. The Department of Trade and Industry Cordillera and its provincial offices and the Negosyo Center, has initiated “new normal” protocols for its usual services like business name registration, SME assistance, and consultations. The photo shows DTI-Benguet with clients availing of the services while the office complies with the health protocols such as wearing masks, physical distancing, and sanitation. (PNA photo courtesy of DTI-CAR)

By Liza Agoot  

BAGUIO CITY – The Department of Trade and Industry in the Cordillera Administrative Region (DTI-CAR) said on Tuesday 424 micro, small and medium enterprises (MSMEs) have applied for small business aid under the P700 million enterprise rehabilitation fund (ERF) of the agency.

Myrna Pablo, DTI-CAR regional director, said the region has requested over P75-million allocation for the loan program, which is payable in five years with an interest of .5 percent interest per month or 6 percent per annum.

"The loan amount ranges from P10,000 to P500,000. Ito ay para sa mga (This is for the) micro and small enterprises," Pablo said, adding that they expect to release the funds to the applicants starting in June.

She said the MSMEs can use as collateral fixed assets like the selling area or the manufacturing place or the production area.

She said with the enhanced community quarantine (ECQ) due to the coronavirus disease 2019 (Covid-19) pandemic, around 90 percent of the over 24,000 MSMEs in the region stopped operation. Around 60 percent of them are based here, in the city.

"Therefore nawalan na sila ng business, hindi sila kumita at yung iba nasira ang inventory katulad kunyari food nag-expire, hindi na nila nagawa at hindi rin nila mai-transport yung finish product so nagkaroon ng effect sa operation (they did not earn, their inventory was affected when their products expired. They did not produce nor were able to transport which affected their operation which in effect, they lost their business)," Pablo said.

She said the loan can be used to pay the amortization of the vehicle they got for their business, as working capital, or can be used to buy raw materials to produce again.

She said the small businesses like those engaged in retailing can avail of the loan but the agency prioritizes DTI-assisted MSMEs engaged in the production of manufactured items that add value to raw agricultural products, like those in the strawberry jam production.

Pablo said that during the ECQ, retailing like the sari-sari stores were allowed to operate, allowing them to continue earning, unlike many of the MSMEs which totally stopped operation.

She said the DTI provincial office does an initial validation of the MSMEs' applications, which have been submitted to the Small Business Corporation, an attached unit of the DTI that handles and approves the loan request.

Pablo said the ERF is the commitment of DTI in the “Bayanihan to heal as one act”.

She said that the department announced the filing as early as April which was overwhelmingly received as shown by the hundreds of applications to avail.

Pablo said the recent survey by the region’s offices of the DTI and the National Economic Development Authority (NEDA) showed that only 10 percent of the 24,000 operated during the ECQ while 90 percent that did not operate are mostly those in the manufacturing sector. (PNA)