PONDO SA PAGBABAGO AT PAG-ASENSO (COVID19 P3-ERF)

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Published — May 15, 2020 

The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.

Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.

Read also: SSS Benefits Available To Employees During The Covid19 Pandemic

Small Business Corporation under the guidance of the Department of Trade and Industry is setting up P1.0 billion Enterprise Rehabilitation Financing facility under the Pondo sa Pagbabago at Pag-asenso (Covid19 P3-ERF) to help many businesses affected by COVID-19 pandemic.

What Businesses are qualified for the Covid19 P3-ERF?

The loan is available to all micro and small enterprises with at least one year continuous operation prior to March 2020, and whose businesses suffered drastic reduction in sales during the epidemic.

Micro, Small and Medium Enterprises (MSMEs) are defined as business activities or entities engaged in industry, agribusiness and/or services, whose total assets, inclusive of those arising from loans but exclusive of land on which the particular business entity’s office, plant, and equipment are situated, must have value falling under the following categories:

1. Micro : Not more than PhP 3,000,000
2. Small : PhP 3,000,001 – PhP 15,000,000
3.  Medium : PhP 15,000,001 – PhP 100,000,000

What are the benefits under the program?

1. Loan amount of PhP 10,000.00 up to PhP 500,000.00 for small enterprises with asset size of not more than PhP 10,000,000.00; or, loan amount from PhP 10,000.00 up to PhP 200,000.00 for micro enterprises
2. Discounted 0.5% monthly interest rate
3. Prolonged grace period until such time that the current crisis is abated.
   
   

Payment moratorium under the P3 loan program of the Small Business Corporation (SBCorp) shall be granted to affected borrowers situated in areas declared under community quarantine or partial lockdown, with the following conditions:

1. A request is submitted by affected borrowers thru email or SMS;
2. Affected borrowers shall be allowed to pay only their interest due for the succeeding six months.

Interest rate will continue to accrue during the moratorium. The term of their loan shall be extended based on the number of months covered by the moratorium.

When Will The P3-ERF Be Implemented?

The Small Business Corporation (SB Corporation) will start accepting applications for the COVID P3 ERF in areas that will transition from the enhanced community quarantine (ECQ) to general community quarantine (GCQ) starting May 18, 2020.

Where Should The Proceeds Of The Loan Be Used?

The proceeds of the loan may only be used for:

1. Updating of loan amortizations for vehicle loans or other fixed asset loans of the affected business
2. Inventory replacement for damaged perishable stock
3. Working capital replacement to restart the business

What Documents Must Be Submitted?

Claimants must submit:

1. Barangay Clearance and
2. LGU certification of business establishment for at least one year

Loan applicants may visit the SB Corporation’s website www.sbgfc.org.ph for the application form and submit the accomplished form and requirements to the nearest SB Corporation office or Negosyo Center in areas under GCQ and modified GCQ.

Application Form

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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.

All rights reserved.

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