Bayanihan 2 Cares loans exceed P2B
The Ministry of Commerce and Industry, through Small Business (SB) Corp., has so far approved more than 2 billion pesos in loans under the Bayanihan 2 Covid-19 Assistance to Restart Enterprises (Cares).
SB Corp. data showed on Wednesday that 21,358 applications requesting a total of 2.2 billion pesos had been approved as of February 2.
The loans released from the program numbered 19,601, valued at around 2 billion pesos.
Bayanihan 2 Cares is part of the government’s economic relief program for micro and small businesses affected by the coronavirus crisis.
After the signing of Republic Law 11494, or “Bayanihan to Recover as One Act”, in September, 10 billion pesos of funds were allocated to SB Corp. to expand the program.
The Cares for Tourism Rehabilitation and Vitalization of Enterprises and Livelihood program, which will receive 6 billion pesos, will also be made available under this fund.
The loan amount to be granted would be based on the size of the assets and the annual sales of the applicant MSME. Additional limits on the size of the loan will be implemented to ensure that more businesses benefit.
Loans will come with a one-time upfront service charge ranging from 4-8%, depending on the applicant’s payment term.
The loan term can be up to four years and the grace periods up to six months. Some industries, including tourism, may benefit from a longer grace period of up to 12 months.