Manila: Small Business Corporation (SBCorp), the financing arm of the Department of Trade and Industry (DTI), has extended PHP223.5 million to micro, small, and medium enterprises (MSMEs) in the Bicol region who were severely hit by typhoons in 2024.

According to Philippines News Agency, SBCorp announced that 1,121 loan applications from the Bicol region have been approved. The majority of these approvals came from Camarines Sur with 874 applications, followed by Albay with 112, Sorsogon with 68, Camarines Norte with 49, Catanduanes with 15, and Masbate with 3.

More than half of the approved loan, totaling PHP124 million, has been disbursed to 654 borrowers. This disbursement covers the period from October 23, 2024, to date. The initiative aims to help businesses rebuild, recover, sustain jobs, and contribute to the region’s economic stability, as emphasized by DTI Region 5 Director Dindo Nabol.

The loan facility provided to Bicol-based MSMEs is part of the Enterprise Rehabilitation Financing (ERF) program. This program offers emergency loans to calamity-stricken enterprises to mitigate damage, restore inventories, address operational disruptions, and recover from revenue losses caused by natural disasters.

Borrowers under this program can apply for a maximum loan of PHP300,000, which is payable over three years. SBCorp offers a three-month grace period for borrowers, with the loan carrying zero interest in the first year and a 1-percent interest rate for subsequent years based on a diminishing balance.

Furthermore, SBCorp has relaxed the requirements for loan applications. For loans up to PHP100,000, only a barangay certificate is needed, while loans above PHP100,000 require a mayor’s permit or Barangay Micro Business Enterprise (BMBE) certificate. All new borrowers must also provide a government-issued ID, proof of bank or e-money account, and corporate documents.