SB Corp-Bohol MOA opens credit

window to 7,000 microbusinesses

TAGBILARAN CITY, Bohol (PIA)— Over 7,000 Boholano micro, small or medium enterprises (MSMEs) needing quick capital to expand business operations could now avail of a low interest, easy to obtain loan from a government financial institution for their small businesses.

This as the Provincial Government of Bohol through Governor Erico Aristotle Aumentado signed a Memorandum of Agreement with Small Business Corporation (SB Corp), to make the government resources available for Boholanos as payback for irrigating rural economies with their initial small investments.

Provincial Administrator Aster Caberte, who used to be a Department of Trade and Industry assistant secretary for regional operations bared that 98.9 percent of the total businesses in the country are MSMEs and of these, 99.8 percent are micro businesses.

By micro businesses, it means it has a capitalization of not more than P3 million excluding land assets, employs 9 or less and have been instrumental in local job creation and economic development.

However, with limited capital for investments expansion, SB Corp’s Senior Vice President and Finance Section chief Lourdes M. Baula pointed out that access to financing as among the biggest barriers for economic growth of the MSMEs.

The agreement with SB Corp and Bohol now brings in access to finance with the lowest interest rate of 1% per month, with no collateral.

“We have simplified the documentary requirements, as long as it is a legitimate, that is, DTI-registered business, in its operations, the loan is available from P20,000 to 20 million and more,” Baula assured.

On the other hand, the agreement authorizes the governor to allocate a space for the “SB Corp to occupy a space inside the Bohol Business One-Stop-Shop (BOSS), the permanent office space assures our MSMEs the permanent presence of SB Corp’s staff to help them access capital,” according to the governor.

With over 10,000 registered MSMEs in Bohol, the SB Corp has already helped 3,555, releasing some P353,675.631 to date, records from the institution show.

“The new agreement opens the same credit window to the remaining 7,000 MSMEs who have been looking for fresh financial inputs to up-scale their operations,” DTI Bohol Provincial Director Vierna Teresa Chiu-Ligan said.

“As the Provincial Government of Bohol and SB Corp formally seal a partnership grounded on shared purpose and collective resolve to strengthen the lifeblood of our economy, we recognize that MSMEs have contributed faithfully to our sustainable development, and their potential to play an even bigger role in shaping our future,” Gov. Aumentado said.

“Today’s partnership ensures that those engaged in rural-based enterprises including those in agriculture can modernize, innovate and connect border markets through this facilitated access to finance and information services,” he added reaffirming the provincial government’s commitment in creating an enabling environment for MSMEs to thrive and provide more opportunities.

SB Corp is government financial institution created in January 1991 under R.A. 6977, Magna Carta for Small Enterprises, amended by RA 8289. (PIABohol)

UNLOCKING CREDIT ACCESS. Gov Erico Aristotle Aumentado and SB Corporation’s Senior VP and Financing Department chief Lourdes Baula signed the MOA which opens the floodgates for government financial assistance services to flow and irrigate rural-based enterprises, in a bid to help sustain Bohol’s unprecedented 8.8% economic growth.

DIMINISHING INTEREST. At 1% diminishing interest per month, a borrower will be paying a diminishing (or reducing balance) interest as computed on the balance of the loan that remains unpaid each month, which makes it more enticing. The MOA was signed by Aumentado and Baula for SB corp witnessed by BEDIPO Dominese, Administrator Caberte, Vice Gov Besas and SB Copp’s innovation group Calderon. while Bohol officials and DTI PD Ligan look on. (PIABohol)