Manila: The Department of Trade and Industry (DTI), through the Small Business Corp. (SBCorp), has set an ambitious target of up to PHP12 billion in loan disbursements for micro, small, and medium enterprises (MSMEs) this year. SBCorp President Robert Bastillo emphasized the government's commitment to supporting small businesses in their expansion efforts.

According to Philippines News Agency, Bastillo announced that the full PHP12 billion is earmarked for loan releases this year. In the previous year, SBCorp disbursed approximately PHP11.2 billion in loans. The increase in demand for loans is attributed to the government's push for small business expansion and support for overseas Filipino workers (OFWs) affected by international events to start their own businesses.

Bastillo expressed confidence in the availability of funds, highlighting that SBCorp can request additional budget from the Department of Budget and Management (DBM) if necessary. He also mentioned that they could utilize various loan facilities or borrower repayments to finance new loans if applications for certain facilities decrease.

The majority of borrowers are micro entrepreneurs, with MSMEs comprising about 90 percent of business establishments in the country. The number of women borrowers is also on the rise, following the introduction of the Women's Enterprise Fund. This fund offers loans ranging from PHP30,000 to PHP20 million at a 1 percent monthly interest rate, with a one-year grace period for principal and interest, and no collateral requirement for loans up to PHP5 billion.

Bastillo noted that loans to women borrowers constitute about 60 percent of total disbursements. The accessibility of loans has improved with the launch of SBCorp's mobile application, leading to an increase in loans availed by women entrepreneurs. SBCorp's engagement with women's groups and DTI's roadshows have further encouraged more individuals to apply for business loans.