The Government’s Pondo sa Pagbabago at Pag-asenso (P3) is now in full swing as the Small Business Corporation (SB Corp), an attached agency of the Department of Trade and Industry (DTI) announced its partnership with three national and local Microfinance Institutions (MFIs) accredited to lend out the P3 microfinance loans.
The P3 Program is a P1 billion microfinancing program designed in response to President Rodrigo Duterte’s directive to replace the “5-6” money lending system. The lending program is intended to give micro and small enterprises access to alternative source of financing that is affordable and easy to access. The program funds are being managed by the Small Business Corporation (SB Corp) mandated to provide financing and capacity building services to micro, small and medium enterprises (MSMEs). SB Corp as part of its mandate, accredits microfinance institutions such as cooperatives, non-bank microfinance institutions (MFI’s) and other associations to become partner conduits .
P3 funds are now available throughout the country through three national conduits : Radiowealth Finance Company Inc. (RFC), Taytay sa Kauswagan Inc. (TSKI), and Mindanao Alliance of Self-Help Societies -Southern Philippines Educational Cooperative Center (MASS-SPEC).
Microenterprises may approach any of these conduits’ selected branches (complete list is available on SB Corp website) and borrow P5,000 to P100,000, at a maximum interest rate of 2.5% per month, with no collateral requirement. This rate compares well with the 10-20% per month charged by other loan providers.
P3 funds is also available through 36 accredited local microfinance conduits in the provinces of Aurora, Benguet, Tacloban, Occidental Mindoro, Saranggani and Misamis Oriental.
Program expansion for the next tranches of P3 funds includes two more national conduit and 88 local conduits in the provinces of Abra, Apayao, Cagayan,Ifugao, Ilocos Sur, Isabela, Nueva Viscaya, Quirino, Nueva Ecija, Pampanga, Tarlac, Camarines Norte, Catanduanes, Cavite, Cebu, Iloilo, Agusan del Norte, Camiguin, Davao del Norte, Misamis Occidental, Zamboanga del Norte and Metro Manila.
Sb Corp is confident that by the end of the of the third quarter of 2017 it will be able to fully disburse P 1 billion in loan to all of the country’s provinces with the help of these partner MFIs .