As the Small Business Corporation (SBC) moves forward in its goal to be the leader in small enterprise development financing and small credit delivery systems nationwide, it takes a step further to accelerate and improve access to credit for its clients by becoming the first Government-Owned and-Controlled Corporation to submit its borrowers’ data to the Credit Information Corporation (CIC). SBC is the first GOCC that was able to submit the five-year historical data of its borrowers to the CIC, even before the deadline set for data submission.
The CIC is a government-owned and-controlled corporation whose primary mandate is to establish a comprehensive and centralized credit information system for the collection and dissemination of fair and accurate credit information. Data collected by the CIC can be used by MSMEs to represent themselves to lending institutions as proof of creditworthiness. A good credit report is expected to allow borrowers to obtain loans at better rates or longer terms.
The milestone submission is timely as the SB Corp President, Mr. Bartholomew Brillo L. Reynes, was a keynote speaker at the recently concluded three-day conference organized by the Asia-Pacific Economic Cooperation (APEC) Finance Ministers’ Process (FMP) Finance Infrastructure Development Network (FIDN) in Taguig last December 7, 8 and 9, 2016.
Mr. Reynes, together with other local and international resource speakers, spoke about the MSME’s enormous potential for contributing to economic growth with access to credit and credit infrastructure. Lack of financial literacy was recognized as one of the issues that hinders MSMEs at every stage of their lifecycle.
The submission of credit data to the CIC by lenders is also in line with a growing national movement to support MSMEs.
Last October, Malacañang issued Executive Order No. 5, calling for the adoption of “Ambisyon Natin 2040,” a twenty-five year, long-term development plan that aims to triple real per capita income, totally eradicate poverty and transform the country into a middle-class society. Beginning with the Aquino administration, and now, with the Duterte administration, the power of MSMEs to transform the economy is finally beginning to be recognized. The appointment of Ramon Lopez, a long-standing proponent of Go Negosyo, an entrepreneurship advocacy program, to the position of Department of Trade and Industry head is reflective of the present government’s stance towards MSMEs.