The Department of Trade and Industry (DTI) has set aside P2 billion in loan assistance for Micro, Small, and Medium Enterprises (MSMEs) impacted by Severe Tropical Storm Kristine, known internationally as Trami. Acting Secretary Cristina Roque of the DTI disclosed this information during a press briefing. She confirmed that registered MSMEs could apply for loans reaching up to P300,000 to support their recovery efforts.
The storm, which made landfall in the Philippines, left significant damage in its wake, affecting numerous businesses across various regions. The loan assistance program is designed to help these businesses get back on their feet by providing them with the necessary financial support. This initiative forms part of the government’s broader efforts to mitigate the economic repercussions brought about by natural disasters.
Qualified MSMEs interested in applying for this loan can do so through the DTI’s financing arm, Small Business Corporation (SB Corp). This special loan facility is part of the Enterprise Rehabilitation Financing (ERF) program, introduced to offer crucial financial aid to businesses striving to resume normal operations after the storm. The ERF program has been structured to offer concessional terms that are not currently accessible in the market.
The loan is interest-free for the first year. After this initial period, a 1 percent interest rate per month will be applied based on a diminishing balance method for the following two years. Borrowers can also avail of a three-month grace period if they require additional time to manage loan repayments. These terms are put in place to ease the financial burden on affected businesses and help stabilize their operations.
According to DTI, eligible MSMEs across several regions, including the National Capital Region, Ilocos Norte, La Union, Bataan, Pampanga, Bulacan, Tarlac, Cavite, Rizal, Laguna, Oriental Mindoro, Romblon, Zamboanga, Davao Occidental, and Cotabato, are encouraged to apply. The assistance is aimed at ensuring that businesses can continue to operate and contribute to their communities’ economic recovery.
The DTI emphasized the program’s importance, noting that MSMEs are vital to the Philippine economy. The MSME sector contributes significantly to job creation and economic growth, and supporting these enterprises in times of crisis is crucial. The agency is committed to providing the necessary support to help businesses overcome the challenges posed by severe weather events.
In addition to the loan program, the DTI is coordinating with other government agencies to ensure a comprehensive response to the disaster. Efforts include the provision of technical support and guidance to help businesses rebuild and implement better disaster preparedness strategies.
The announcement of the loan assistance was met with positive responses from the business community, with many expressing hope that it will provide much-needed relief. For businesses like small retail shops, food vendors, and service providers, the financial aid represents a lifeline to recovery.
DTI officials have reiterated their commitment to continued support for MSMEs, not just in terms of financial assistance but also through policy frameworks that promote resilience and sustainable growth. By facilitating access to funds and resources, the DTI aims to help MSMEs overcome the impacts of natural calamities and thrive in the long run.
