Tacloban City – The Department of Trade and Industry Region 8 together with the Small Business Corporation releases a total of P940, 000 to 26 initial borrowers of the Pondo sa Pagbabago at Pag-asenso (P3) Financing Program on February 9, 2017.
The P3 program is a funding program to provide microenterprises easy access to credit at a reasonable cost. This gives a boost to the development of the MSME sector, particularly the microenterprises that comprise about 90% of registered enterprises in the country.
The program runs its pilot implementation in the three provinces of Occidental Mindoro, Saranggani, and Leyte. In Tacloban City, 26 stall owners and market vendors where initially granted with direct retail loans. These ranges from P30,000 to P50,000 with a maximum interest rate of 2.5% per month without collateral. Collection of payment can either be on a weekly or monthly scheme.
“Since I was young, market vending has been the business of my family and we were able to graduate through this. P3 is such a big help to market vendors like me who rely on burdensome 5-6 money lending,” says P3 borrower Nestor Mendros.
Aside from the direct loans, P3 has another mode of delivery which is through the Microfinance Institutions (MFIs). Eight MFIs were accredited and given a total of Php 43M credit line, six of which are home grown Credit Cooperatives or MFIs in the region. Credits amounting to P1,000,000.00 and above will be channeled to these MFIs who will be giving a maximum of 30% interest rate per annum.
SBC President Bartholomew Brillo Reynes said that if this pilot run becomes successful, P3 will continue to be funded to support more microenterprises especially in the countryside.