Trade Secretary Cristina Roque —JORDEENE B. LAGARE
MANILA, Philippines – The Department of Trade and Industry (DTI) is open to the idea of creating a credit facility to help cushion exporters from higher US tariffs.
In an interview on Monday, Trade Secretary Cristina Roque said the agency could set up the credit facility within a week or a month, through Small Business Corp. (SBCorp), the DTI’s financing arm.
“It would be easy because the control of the SBCorp is really with me, because I’m the [concurrent chair]. It’s easy for me to maneuver,” she said on the sidelines of the Turismo Asenso Loan Program launch held in Pasay City.
READ: DTI consults with Philippine exporters on US tariffs
Roque said SBCorp had sufficient funds to provide financial relief to exporters, whether big or small, which might be affected by America’s reciprocal tariffs.
The state-run firm has a budget of P1.5 billion for this year that can be tapped for this offering, while the DTI is requesting a P1.5 billion for the government financial institution next year.
Loans
According to the trade chief, there is no need for the President to issue an executive order to offer such loans to exporters.
Created in 1991, SBCorp is primarily responsible for implementing comprehensive policies and programs to assist micro, small and medium enterprises (MSMEs) in all areas.
Mr. Marcos led the ceremonial awarding of P3.38 million worth of loans under this initiative, a low-interest financing for MSMEs in the tourism sector.
The first batch comprised nine beneficiaries that operate wellness spas, resorts and travel and tour agencies from Metro Manila and the provinces of Rizal, Cavite and Laguna. Loan packages range from P150,000 to P1 million.
It is jointly implemented by the Department of Tourism and the DTI through SBCorp, which offers low-interest financing to help tourism MSMEs expand operations, upgrade services and sustain jobs.
MSMEs
In his speech, Mr. Marcos ordered concerned government agencies to expand the program and ensure the accessibility of the tourism loan program, especially in far-flung areas.
“Through these loans, we can help our MSMEs expand their businesses and improve the quality of service to showcase our proud Filipino hospitality brand,” he said in Filipino.
The undertaking, which Roque said can be implemented even beyond the term of President Marcos, was formalized through a memorandum of agreement signed by both agencies in April.
Under this loan program, tourism-related enterprises can tap low-interest loans of up to P20 million. Repayment terms can last up to five years and the interest rate is 1 percent per month based on a diminishing balance.
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This is open to: Filipino-owned businesses or partnerships/and corporations with at least 60- percent Filipino ownership; those with assets not exceeding P100 million, exclusive of land value; businesses with a track record of at least one year; and borrowers without past due accounts under any SBCorp program; and borrowers without major negative credit findings. INQ
