House panel OKs bill to aid COVID-hit businesses

The House Defeat COVID-19 Committee has approved a bill, the proposed Government Financial Institutions Unified Initiatives to Distressed Enterprises for Economic Recovery (GUIDE) Law.

This measure aims to strengthen government financial institutions like the Land Bank of the Philippines (LBP), the Development Bank of the Philippines (DBP), and the Philippine Guarantee Corporation (PGC) to assist businesses affected by the pandemic.

The proposed law includes P55 billion to bolster these institutions, with the PGC receiving P5 billion for increased loan guarantee coverage and reduced fees, and the DBP allotted P15 billion for expanded loan programs for MSMEs.

Majority Leader Martin Romualdez highlighted the necessity of addressing liquidity issues and maintaining employment, citing that an estimated 1.2 million workers were displaced by the COVID-19 lockdown, a number further increased by returning overseas Filipino workers who also lost their jobs.

The bill, a substitute for HB No. 6795, is intended to help enterprises distressed by the health crisis recover through various programs and initiatives.

The measure was swiftly approved by the committee and will now be presented to the plenary for further readings and approval.