DBP has intensified its support to the micro, small and medium enterprises (MSMEs) sector with the launch of two new initiatives aimed at liberalizing credit access of small business owners and poultry owners.
President and Chief Executive Officer Cecilia C. Borromeo said the DBP Small Business Puhunan Loan and the DBP Broiler Contract Growing programs reflect the bank’s commitment to further empower small entrepreneurs in the country and spur entrepreneurial vigor among the citizenry.
“These two programs are designed to remove the barriers that impede the growth of MSMEs such as lack of access to bank financing and slow loan processing,” President Borromeo said during the launcing of the new programs held at the Bulwagan ng Diwang Pilipino recently. “Our hope is that through these initiatives, more entrepreneurs will be able to sustain their businesses and contribute to the growing economy.”
Chairman Alberto G. Romulo emphasized on the impact of the programs in promoting inclusive growth and reducing poverty. “If we are going to achieve the goal of President Duterte that by 2022, we would reduce poverty to 14% from the present 21 or 22%, then we have to go to the backbone of the economy which is the MSME sector. This is where I am excited with the role that DBP plays.”
Department of Trade and Industry undersecretary Zenaida Maglaya reported that micro enterprises comprise 90 percent of the business establishments in the country today and agreed that they will get enough support from the new DBP loan programs. “These are the ones who will benefit from the P300,000 to P1-million loan packages. It is very inspiring to have DBP as partners in assisting this sector,” she said.
The DBP Small Business Puhunan Loan Program (SBPLP) provides permanent working capital from as low as P300,000 to as high as P1-million to micro and small-sized enterprises with existing account either with DBP or other banks. It aims to support the national government’s thrust to provide credit for working capital of small enterprises.
The Broiler Contract Growing Program is a sub-program under the DBP Sustainable Agribusiness Financing Program (SAFP). It is designed to encourage contract growers to expand their businesses by facilitating the financing of poultry broiler contract growing projects through faster loan processing.
Eligible projects under the program include farm acquisition, development, expansion or rehabilitation. Loanable amount is up to 80 percent of the total project cost with repayment term of up to 10 years.