Special business lending program for Marawi

DEPARTMENT of Trade and Industry’s (DTI) financing and guarantee attached corporation, Small Business Corporation (SBCorp) attached micro-finance will be offering zero percent interest loans to help the constituents of Lanao del Sur, specifically Marawi micro entrepreneurs displaced by the war, starting early December 2017 up to April 2018 as part of government rehabilitation efforts of Marawi City.

“The recent events in Marawi raised the need to generate several programs that will aide in the rehabilitation of Marawi and the full assistance to affected residents. In support of government-wide efforts to help the people of Marawi, we will be working closely with our Maranao countrymen to ensure they have access to the needed funds to get their businesses back on their feet,” said Trade Secretary Ramon Lopez.

After the interest free loan, DTI shall extend the Pondo sa Pagbabago at Pag-asesnso (P3) Program which is also the Microfinance program implemented by the SBCorp. This will be complemented by starter livelihood kits being distributed by the DTI.

For Micro Finance Institutions (MFIs) that want to start lending to the Lanao del Sur area in solidarity with the people of Marawi and the entire province, the P3 Program will provide credit risk support to MFIs in exchange for their timely and quick response. A DTI-SBCorp team has been assigned at DTIMarawi to set up the P3 facility, which will also be supported by DTI-Cagayan de Oro.

To date, SBCorp—with the support of the DTI regional and provincial offices—has accredited a total of 94 MFIs, plus another 45 MFIs in the pipeline. Moreover, the P3 Program is now rolled out throughout the entire country from north to south except for a handful of provinces, with close to 40,000 borrowers to date.

Most of the MFIs that have signed up are cooperatives, i.e. self-help people’s organizations that have a good grasp of the needs of their members to grow their businesses. Likewise, several large MFIs— including the Center for Agriculture and Rural Development (CARD)—have aired their support to the program for its timely scale up even in remote areas of the country.