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In a bid to boost lending to small businesses, authorities are considering the creation of a dedicated loan program for microfinance non-government organizations.
Another option the Bangko Sentral ng Pilipinas and the Philippine Guarantee Corp. are looking into is subsidizing the surety fees of all loans endorsed through the Credit Surety Fund.
“These measures aim to broaden support for the microfinance and MSME (micro, small, and medium enterprises) sectors, which are severely affected by the Covid-19 pandemic,” BSP said.
Authorities recognize the importance of helping small businesses, especially during the pandemic, as they account for about 99 percent of businesses in the country.
Amid this volume, some small business owners still find it difficult to get a boost from financial institutions due partly to such requirements as identification cards of owners and lack of assets that could be used as collateral.
Photo: PNA
