Connect with us

Hi, what are you looking for?

Economy

MSME loan approvals only a fraction of funds allocated as Bayanihan II nears expiry

THE Department of Trade and Industry (DTI) has so far extended P1.2 billion worth of loans to micro, small and medium enterprises (MSMEs) affected by the coronavirus disease 2019 (COVID-19) pandemic, much less than the funds allocated, a senator said, citing data from the department.

The loans granted assisted a total of 1,660 MSMEs, while more than 26,000 loan applications are awaiting approval, subject to funding availability, Senator Juan Edgardo M. Angara said.

“Of the P10 billion (allocated), only P1 billion has been released as of today, Nov. 18 and the DTI has approved 1,660 loans equivalent to around P1.2 billion,” he said during plenary deliberations on the 2021 national budget Wednesday.

The Bayanihan to Recover as One Act, or Republic Act No. 11494, known informally as Bayanihan II, provided P10 billion for the COVID-19 Assistance to Restart Enterprises (CARES) program and other lending activities of the Small Business Corp.

“Yesterday, we were all concerned about P80.5 billion cash available for DSWD (the Department of Social Welfare and Development). Now we’re talking of P9 billion still to be turned over to the DTI for distressed companies, and we have 26,000 distressed companies crying for help,” Senator Francis N. Pangilinan said.

It was clarified during the session that the Department of Budget and Management (DBM) has released P8 billion to SB Corp., but SB Corp. was only able to approve the P1.2 billion worth of loans.

Mr. Angara noted the P10 billion Bayanihan II funding for loans will assist around 100,000 MSMEs and 200,000 workers.

In light of the delay in releasing the remaining funds, senators asked the government to speed up the process, as the Bayanihan II law will be expiring on Dec. 19.

The non-release of the funding has been cited in calls to either extend the validity of certain provisions under the Bayanihan II law or enact a new measure that will expedite the release of funds.

The 2021 national budget, as approved by the Committee on Finance, provided P22.012 billion to the DTI.

Of this total, P1.5 billion will be allocated as assistance to MSMEs and P2 billion for the CARES program, which had been expanded from P1.5 billion under the National Expenditure Program.

Mr. Angara said the P2 billion funding is estimated to provide an average of P20,000 worth of loans to 100,000 applicants. — Charmaine A. Tadalan

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

By Keisha B. Ta-asan, Reporter PHILIPPINE BANKS will continue to see improved profits this year, supported by better margins following the central bank’s rate...

Economy

THE PHILIPPINE government’s move to grant value-added tax (VAT) refunds for foreign tourists is expected to boost the tourism industry’s recovery from the coronavirus...

Economy

By Luisa Maria Jacinta C. Jocson, Reporter THE GOVERNMENT should diversify its major growth drivers to rely less on consumption as household spending is...

Economy

By Arjay L. Balinbin, Senior Reporter SMEC Philippines, Inc., a unit of Singaporean infrastructure and urban development consultancy company Surbana Jurong Group, said it...

Economy

THE Securities and Exchange Commission (SEC) warned the public against putting money in three entities, which are soliciting investments without first securing a license....

Economy

DMCI Holdings, Inc. and Union Bank of the Philippines are seen to improve their liquidity and stock valuation after their re-entry to the Philippine...

You May Also Like

Investing

Browsing history makes referring to sites and pages you’ve visited in the past seamless. It’ll help you recall what page you checked out on...

Investing

The minute that any question pops into your head, you can simply ask Google. No longer do we have to pour over books and...

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.