DTI accepting CARES loan applications

The Department of Trade and Industry (DTI) is now accepting loan applications from micro and small enterprises struggling with the impact of the coronavirus disease 2019 or COVID-19 crisis in areas that have shifted to general community quarantine (GCQ).

In a statement, DTI said its financing arm Small Business (SB) Corp. started accepting applications yesterday for the COVID-19 Assistance to Restart Enterprises (CARES) program through its offices in areas now under GCQ.

Most parts of the country are now under GCQ except Metro Manila, Laguna, Bataan, Bulacan, Nueva Ecija, Pampanga, Zambales and Angeles City which are under a modified enhanced community quarantine, and Cebu City and Mandaue City which are under an enhanced community quarantine.

CARES is part of the government’s economic relief program for micro and small enterprises affected by the COVID-19 pandemic.

Under the CARES, P1 billion worth of funds is being made available for lending to micro and small enterprises.

Micro enterprises with asset size of not more than P3 million may borrow from P10,000 up to P200,000, while small enterprises with asset size of not more than P15 million may avail of loans worth up to P500,000.

Businesses can use the borrowed funds to update loan amortizations for vehicle loans or other fixed asset loans, to replace perishable stocks, and as working capital to restart operations.

Loans under the CARES program have a monthly interest rate of 0.5 percent, and grace period of six months on principal payments.

To avail of the loans, the micro and small enterprises should be in operation for at least one year prior to March 16 of this year and should not have assets worth more than P15 million.

Applicants may visit the SB Corp.’s website www.sbgfc.org.ph to get the application form and submit such with the requirements to the nearest SB Corp. office or Negosyo Center in areas under GCQ.

Applicants are required to wear face masks and practice social distancing.