Higher base amount for loan program ok

The city legal office agrees that there is a need to increase by at least 100 percent the capital amount extended to beneficiaries of the Self Employment Assistance Kaunlaran to sustain the loan program.

In a legal opinion, Atty. Mary Rose Salvatierra of the city legal office said the increase is doable and is legally sound.

“This Office is of the opinion that there is no legal impediment to the proposed resolution. Specifically, the Capital Assistance available to beneficiaries may be validly increased from P2,000 to P5,000 to P10,000,” the opinion reads.

“Admittedly, there is a need to increase the capital assistance ceiling of the loan program to make it more sustainable,” it reads further.

If the proposal is approved, beneficiaries receiving a capital assistance of P2,000 will receive P5,000 while whose already getting P5,000 will be receiving P10,000 depending on the Income Generated Project.

The City Council earlier asked the city legal office to render an opinion on the proposed resolution of Councilor Gerardo Carrillo to amend Resolution No. 1878, which ratified the policies and guidelines governing the grant of small business loan by the city’s Department of Social Welfare Services.

In 1993, DSWS implemented the SEA-K program, which aims to empower the poor and making them self-reliant through the provision of earning opportunities and technical capabilities towards poverty alleviation. The program provides P2,000 as beneficiaries’ initial capital assistance ceiling per Income Generating Project or per group member.

It also aims to provide the poor and disadvantaged sector of the society with timely access to credit and development opportunities.

However, Salvatierra said the initial capital assistance applicable for “qualified” beneficiaries should be P5,000 per Income Generating Project. The amount may be doubled upon a second loan application depending on the record of payment of the beneficiaries.

The amount loaned vary depending on their respective livelihood projects but is not below P25,000 and not more than P50,000. The loan is payable within a three-year period without interest.