Small Business Corporation (SBCorp), the financing arm of the Department of Trade and Industry (DTI), has extended PHP223.5 million to micro, small and medium enterprises (MSMEs) in the Bicol region who were severely hit by typhoons in 2024.

In a statement Thursday, SBCorp said 1,121 loan applications from Bicol have been approved, with a majority coming from Camarines Sur (874), Albay (112), Sorsogon (68), Camarines Norte (49), Catanduanes (15), and Masbate (3).

More than half of the approved loan amounting to PHP124 million were already disbursed to 654 borrowers, covering the period from Oct. 23, 2024 to date.

“This loan assistance reflects our commitment to help them rebuild, recover, sustain jobs, and contribute to the region’s economic stability,” DTI Region 5 Director Dindo Nabol said.

The loan facility extended to Bicol-based MSMEs is under the Enterprise Rehabilitation Financing (ERF) program, which serves as emergency loan for calamity-stricken enterprises to alleviate the damage, inventories, operational disruptions, and revenue losses caused by natural disasters.

Under the loan program, borrowers can apply for a maximum loan of PHP300,000, payable for three years.

SBCorp offers three-month grace period for the borrowers. The loan has zero interest in the first year and only applies a 1-percent interest rate for the following years based on diminishing balance.

SBCorp also relaxed the requirements for loan application, only submitting barangay certificate for loans up to PHP100,000, while loans above PHP100,000 will require mayor’s permit or Barangay Micro Business Enterprise (BMBE) certificate.

All new borrowers must also provide a government-issued ID, proof of bank or e-money account, and corporate documents. (PNA)