RISE UP loan program ng Small Business Corporation, inilunsad para sa MSMEs

PTVPhilippines

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00:00 Rise Up and other loan programs of Small Business Corporation.

00:04 We will discuss this with the board member of DTI Small Business Corporation,

00:09 Sir Voltaire Magpayo.

00:11 Good afternoon and welcome to Bagong Pilipinas.

00:15 Yes, good afternoon.

00:17 Good afternoon to those who are eating their lunches.

00:22 Especially, your name is so beautiful, Sir Magpayo.

00:26 Yes, Director Magpayo.

00:28 We will get a lot from him today.

00:30 Sir, first of all, what is Small Business Corporation?

00:34 Yes, Director Glenn.

00:36 Actually, Small Business Corporation is an agency under the Department of Trade and Industry

00:43 led by Secretary Fred Pascual.

00:46 This is an agency where we are in line with the financial needs of small but thriving businessmen of our country.

00:56 Especially, those who are not noticed or are being supported by big financial institutions like banks.

01:05 We take pride in giving the best financing alternative to the least, last and lost sector of our society,

01:14 which are the MSMEs.

01:16 Least, last and lost.

01:18 That's beautiful. Least, last and lost.

01:21 We'll be the first, maybe.

01:23 And they will be found, right?

01:25 Yes.

01:26 Sir, for our countrymen, especially the small businessmen,

01:31 please explain this Rise Up Program of Small Business Corporation.

01:37 Yes, because this is a spin-off loan program.

01:41 If you remember, during the pandemic, SB Corp. and I provided financial assistance, P3,

01:48 to many affected entrepreneurs of our country.

01:54 So, from the survival mode, we are now here at the Rise Up side.

01:59 It's an acronym for resilience, innovative, sustainable entrepreneurs, unleash your power.

02:08 So, we are encouraging them to rise up.

02:13 What you're saying is very inspiring.

02:15 Because I can very much relate because I also consider myself as a small business owner and entrepreneur.

02:23 Who can get or qualify to apply for these loan programs?

02:30 Can this be done for those who want to open a business or those who want to open a business for the first time?

02:38 Ma'am Nina, actually, this is available for everyone.

02:42 As long as 100% owned by a Filipino, well, the certificate is the registration of business name.

02:51 If this is a corporation, at least 60% must be majority owned by Filipinas.

02:57 Yes.

02:58 Open to everyone.

02:59 So, for our countrymen to be more enlightened, what is the difference between Rise Up, a multi-purpose loan, and Rise Up Tindahan?

03:10 The Rise Up multi-purpose loan, actually, it's an additional working capital.

03:15 It's an additional capital for our countrymen.

03:18 This is a very minimal interest and this is not a collateral, it's a clean loan.

03:24 And this has a grace period of one year.

03:26 Meaning, within one year, you won't be able to pay anything.

03:30 So, you can use the money.

03:32 So, this is open for everyone.

03:34 Well, provided that you should be micro.

03:37 When we say micro, your asset should be 3 million below.

03:44 And if small, 3 million to 14 million.

03:47 That's the only qualification requirement.

03:51 Okay.

03:52 Sir, how about the existing SB Corp borrowers?

03:56 Can they still apply for these loan programs?

04:00 Yes, it's available.

04:02 Well, I just didn't differentiate earlier.

04:04 Earlier, Rise Up is an additional working capital.

04:07 The other one is tailor-made or custom-made for the stores.

04:15 These are the ones who buy what we call fast-moving consumer goods.

04:20 So, we give them credit lines.

04:22 So, instead of using their cash that they bought from the market,

04:26 they buy directly from there.

04:29 For example, Alaska.

04:30 Sorry, I don't know if it's allowed.

04:32 And other brands.

04:33 Yes, other brands.

04:34 Okay.

04:35 So, how long is the process of these Rise Up programs before they get their loanable amount?

04:45 Assuming the document is complete.

04:47 Well, it's just small.

04:49 We only asked for a very minimal document.

04:53 So, 100,000 below.

04:55 Just a certificate from Barangay.

04:57 It's that simple.

04:58 Okay.

04:59 So, assuming it's complete, we can release their loan in 15 days.

05:04 Really?

05:05 A certificate from Barangay?

05:06 So, 100,000 and below?

05:08 Yes, ma'am.

05:09 And what if it's above 100,000?

05:10 From above, of course, ma'am, we will require the usual, which is the mayor's permit.

05:15 We need a picture of their business, ITR, and a little of credit investigation.

05:24 So, that's it.

05:25 That's how our process runs.

05:27 Okay.

05:28 So, now, sir, how many programs are being helped by the Small Business Corporation?

05:34 And how big is the amount that we will be lending?

05:38 Well, just to be accurate, there are two.

05:42 The wholesale, if we call it, we are lending to the conduits.

05:46 We have cooperatives, lending institutions, based nationwide.

05:51 They are in turn being lent to the micro.

05:53 That's what we call wholesale.

05:55 So, wholesale, we are now reaching P52 billion.

05:58 P52 billion to P194 million pesos, in terms of pesos.

06:05 And that is more or less P645 conduits nationwide.

06:09 But in retail, what we call direct lending to our fellowmen,

06:16 we are now reaching P20 billion to P404 million pesos.

06:21 Which is equivalent to more or less 61,000 micro and small entrepreneurs in the whole of the Philippines.

06:27 Okay.

06:28 So, sir, aside from the rise of programs of SB Corporation,

06:33 are there any other loan programs for our micro, small, and medium enterprises?

06:39 Yes, sir, there are.

06:41 Well, we are always in line with the name of the conduits.

06:46 Like when there was an accident, for example, an earthquake or a debt,

06:51 we had a loan facility, if we call it ERF or Enterprise Rehabilitation Financing,

06:59 where we are giving them assistance.

07:01 The grace period is bigger and their payment term is bigger.

07:05 That's one, the ERF.

07:07 There is also another.

07:08 If you will remember, during the pandemic, everyone was having a hard time paying for 13 months.

07:12 We also provided a facility for 13 months pay financing.

07:17 So, those micro and small enterprises that cannot pay for 13 months, they can borrow from us.

07:22 And there are more.

07:23 But I just want to give a hint, what we call venture capital,

07:27 where if you are in the supply chain of agriculture,

07:32 we are the ones who are paying and contributing.

07:35 Capital infuses up to 40% of the equity of a business.

07:42 So, there are many who can ask for help from our fellow countrymen

07:47 who are doing business and have a desire to do business.

07:51 So, we know that the requirements and terms of these loan programs are different.

07:57 In general, among the ones you mentioned,

08:00 maybe the most common, how low is the interest of the SB Corp loan programs

08:07 and how long are the repayment terms of these?

08:11 Actually, ma'am, first of all, the requirements you mentioned, we speed up the process.

08:16 Under the leadership of our Secretary and under the administration of President Juan Pau Marcos,

08:21 just a simple barangay certificate, they can approach and borrow from us up to 100,000.

08:27 Although beyond that, there are the usual requirements.

08:30 Our payment term is until 3 years.

08:33 Our payment is up to 3 years.

08:36 But in case they will request for longer terms, we can extend it.

08:41 How much is the interest?

08:43 Our interest usually, when it comes to wholesale, meaning through conduits, lending institutions, banks, etc.,

08:51 it is only 3.5 to 6.5% per year.

08:56 But in retail, it is 8% to 12%, which is very minimal.

09:02 Compared to others, how much is it?

09:05 Actually, the cost of money now, the interbank lending rate, borrowing rate, is already 6%, 6.5%.

09:12 So the spread is very minimal. If not, we don't have a spread.

09:15 How low can you borrow and how high?

09:19 We are 30,000, as low as 30,000.

09:22 And as high as 5 million, there is no collateral.

09:25 Imagine, there is no collateral.

09:27 For those who are interested, for those who want to loan, for these programs, where can they go and call?

09:36 Or maybe you have a website because this program is like a bitin.

09:40 For this kind of discussion, websites that can be visited for application and additional information for your programs.

09:50 Yes, we would like to encourage them to go online.

09:55 That is the trend now, digitalization.

09:58 So just log in at brs.sbcorp.gov.ph or they can always visit our website at www.sbcorp.gov.ph.

10:10 Now, if they cannot log in, they can visit any Go! Negosyo Center all over the country.

10:18 We have people there who are in charge of how to do it.

10:24 How can they apply?

10:26 Sir Volk here, we learned a lot from your advisors.

10:31 Just message our fellow countrymen who are watching our program.

10:35 Yes, thank you very much for the opportunity.

10:38 In the name of our President, Mr. Bobby Bastillo,

10:42 we would like to encourage everyone who wants to grow their business, upscale, uplift, or increase their business,

10:53 to visit SB Corp.

10:55 We are here.

10:57 It's not saying that we are trying to displace any sector of the society,

11:00 but we would like to make our services accessible to everyone who wants to add.

11:07 Thank you very much for your time and for our guest,

11:13 the board member of DTI Small Business Corporation, Sir Walter Magpayo.

11:19 Thank you very much.

11:20 Thank you, too.

11:21 Thank you, Dimple.

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