Baguio SMEs can tap P100-M stimulus package

BAGUIO CITY: Some P100 million is readily available to initially finance the local government’s stimulus package for micro, small and medium enterprises (MSMEs), whose operations had been heavily affected by the implementation of the Luzon-wide enhanced community quarantine (ECQ).

City Budget Officer Leticia O. Clemente, chairperson of the city’s Local Finance Committee, said that the funds for the local stimulus package will be drawn from the P150 million earlier appropriated by the city council for the anti-coronavirus disease 2019 operations, which had not been fully utilized.

Clemente explained that 50 percent of the initial amount earmarked for the local stimulus package will be given to micro businesses, 30 percent will be allocated for small businesses and 20 percent will be for medium-sized enterprises in the city.

Based on the data obtained from the city’s Permits and Licensing Division, over 23,000 businesses in the city were issued business permits last year with 20,484 under the micro category, 2,074 as small businesses, 438 medium enterprises, while 63 are large businesses.

In terms of contribution to the coffers of the city through the taxes paid, Clemente revealed that the micro businesses accounted for P98 million of the business taxes collected last year, small enterprises contributed P58 million, and medium businesses paid more than P72 million taxes.

According to the drafted loan guidelines, the financial assistance will bare zero interest and payable within 24 months. The business must have been operational for at least one year and with a valid business permit issued for its operation.