DTI secures P1B more for COVID-19 loan program

The Department of Trade and Industry (DTI) is securing an additional PHP1 billion to bolster its zero-interest loan program, CARES, for micro, small, and medium enterprises (MSMEs) impacted by the COVID-19 pandemic.

The CARES program, managed by Small Business (SB) Corp., offers interest-free loans with a 6% service charge and a repayment period of up to 24 months, including a six-month grace period.

SB Corp. temporarily halted new applications on June 18, as existing applications exceeded the initial P1 billion fund.

Land Bank of the Philippines and Development Bank of the Philippines (DBP) provided the additional PHP1 billion to SB Corp. to continue the rollout of the loan program.

The DTI is also allocating funds from its Pondo sa Pagbabago at Pag-asenso (P3) loan program and hopes for additional funds from the stimulus package and the next budget.