The Department of Trade and Industry (DTI) has introduced a PHP 4 billion loan programme designed to support micro, small, and medium enterprises (MSMEs).

Launched in Makati City by Trade Secretary Ma. Cristina Roque, the MSME Business Fund aims to help local businesses manage the economic effects of the current Middle East conflict and fund their operational expansion.

Through the DTI’s lending arm, the Small Business Corporation, eligible MSMEs can borrow up to PHP 20 million. Loans of up to PHP 5 million are available without requiring collateral.

Borrowers benefit from a five-year repayment schedule. It includes a one-year grace period where no principal or interest payments are required.

Applicants must provide a government-issued ID, a mayor’s permit, proof of a bank account, business photographs, and relevant corporate documents.

Roque anticipates strong interest in the new initiative.

“Definitely we are expecting a high demand, especially during times such as this. Just like the Women Enterprise Fund, there are so many who availed of that,” she stated.

If the initial allocation is exhausted before the end of the year, the department may consider replenishing the fund. Regarding future allocations, Roque noted:

“We’ll try to really get more funding for this.” She encouraged business owners to utilise the flexible loan terms, adding, “They can really use this fund to really drive the business or to move forward also.”

Featured image: Edited by Fintech News Philippines based on images by starline and Borin via Freepik.