RISE UP loan program ng Small Business Corporation, inilunsad para sa MSMEs
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00:00 Rise Up and other loan programs of Small Business Corporation.
00:04 We will discuss this with the board member of DTI Small Business Corporation,
00:09 Sir Voltaire Magpayo.
00:11 Good afternoon and welcome to Bagong Pilipinas.
00:15 Yes, good afternoon.
00:17 Good afternoon to those who are eating their lunches.
00:22 Especially, your name is so beautiful, Sir Magpayo.
00:26 Yes, Director Magpayo.
00:28 We will get a lot from him today.
00:30 Sir, first of all, what is Small Business Corporation?
00:34 Yes, Director Glenn.
00:36 Actually, Small Business Corporation is an agency under the Department of Trade and Industry
00:43 led by Secretary Fred Pascual.
00:46 This is an agency where we are in line with the financial needs of small but thriving businessmen of our country.
00:56 Especially, those who are not noticed or are being supported by big financial institutions like banks.
01:05 We take pride in giving the best financing alternative to the least, last and lost sector of our society,
01:14 which are the MSMEs.
01:16 Least, last and lost.
01:18 That's beautiful. Least, last and lost.
01:21 We'll be the first, maybe.
01:23 And they will be found, right?
01:25 Yes.
01:26 Sir, for our countrymen, especially the small businessmen,
01:31 please explain this Rise Up Program of Small Business Corporation.
01:37 Yes, because this is a spin-off loan program.
01:41 If you remember, during the pandemic, SB Corp. and I provided financial assistance, P3,
01:48 to many affected entrepreneurs of our country.
01:54 So, from the survival mode, we are now here at the Rise Up side.
01:59 It's an acronym for resilience, innovative, sustainable entrepreneurs, unleash your power.
02:08 So, we are encouraging them to rise up.
02:13 What you're saying is very inspiring.
02:15 Because I can very much relate because I also consider myself as a small business owner and entrepreneur.
02:23 Who can get or qualify to apply for these loan programs?
02:30 Can this be done for those who want to open a business or those who want to open a business for the first time?
02:38 Ma'am Nina, actually, this is available for everyone.
02:42 As long as 100% owned by a Filipino, well, the certificate is the registration of business name.
02:51 If this is a corporation, at least 60% must be majority owned by Filipinas.
02:57 Yes.
02:58 Open to everyone.
02:59 So, for our countrymen to be more enlightened, what is the difference between Rise Up, a multi-purpose loan, and Rise Up Tindahan?
03:10 The Rise Up multi-purpose loan, actually, it's an additional working capital.
03:15 It's an additional capital for our countrymen.
03:18 This is a very minimal interest and this is not a collateral, it's a clean loan.
03:24 And this has a grace period of one year.
03:26 Meaning, within one year, you won't be able to pay anything.
03:30 So, you can use the money.
03:32 So, this is open for everyone.
03:34 Well, provided that you should be micro.
03:37 When we say micro, your asset should be 3 million below.
03:44 And if small, 3 million to 14 million.
03:47 That's the only qualification requirement.
03:51 Okay.
03:52 Sir, how about the existing SB Corp borrowers?
03:56 Can they still apply for these loan programs?
04:00 Yes, it's available.
04:02 Well, I just didn't differentiate earlier.
04:04 Earlier, Rise Up is an additional working capital.
04:07 The other one is tailor-made or custom-made for the stores.
04:15 These are the ones who buy what we call fast-moving consumer goods.
04:20 So, we give them credit lines.
04:22 So, instead of using their cash that they bought from the market,
04:26 they buy directly from there.
04:29 For example, Alaska.
04:30 Sorry, I don't know if it's allowed.
04:32 And other brands.
04:33 Yes, other brands.
04:34 Okay.
04:35 So, how long is the process of these Rise Up programs before they get their loanable amount?
04:45 Assuming the document is complete.
04:47 Well, it's just small.
04:49 We only asked for a very minimal document.
04:53 So, 100,000 below.
04:55 Just a certificate from Barangay.
04:57 It's that simple.
04:58 Okay.
04:59 So, assuming it's complete, we can release their loan in 15 days.
05:04 Really?
05:05 A certificate from Barangay?
05:06 So, 100,000 and below?
05:08 Yes, ma'am.
05:09 And what if it's above 100,000?
05:10 From above, of course, ma'am, we will require the usual, which is the mayor's permit.
05:15 We need a picture of their business, ITR, and a little of credit investigation.
05:24 So, that's it.
05:25 That's how our process runs.
05:27 Okay.
05:28 So, now, sir, how many programs are being helped by the Small Business Corporation?
05:34 And how big is the amount that we will be lending?
05:38 Well, just to be accurate, there are two.
05:42 The wholesale, if we call it, we are lending to the conduits.
05:46 We have cooperatives, lending institutions, based nationwide.
05:51 They are in turn being lent to the micro.
05:53 That's what we call wholesale.
05:55 So, wholesale, we are now reaching P52 billion.
05:58 P52 billion to P194 million pesos, in terms of pesos.
06:05 And that is more or less P645 conduits nationwide.
06:09 But in retail, what we call direct lending to our fellowmen,
06:16 we are now reaching P20 billion to P404 million pesos.
06:21 Which is equivalent to more or less 61,000 micro and small entrepreneurs in the whole of the Philippines.
06:27 Okay.
06:28 So, sir, aside from the rise of programs of SB Corporation,
06:33 are there any other loan programs for our micro, small, and medium enterprises?
06:39 Yes, sir, there are.
06:41 Well, we are always in line with the name of the conduits.
06:46 Like when there was an accident, for example, an earthquake or a debt,
06:51 we had a loan facility, if we call it ERF or Enterprise Rehabilitation Financing,
06:59 where we are giving them assistance.
07:01 The grace period is bigger and their payment term is bigger.
07:05 That's one, the ERF.
07:07 There is also another.
07:08 If you will remember, during the pandemic, everyone was having a hard time paying for 13 months.
07:12 We also provided a facility for 13 months pay financing.
07:17 So, those micro and small enterprises that cannot pay for 13 months, they can borrow from us.
07:22 And there are more.
07:23 But I just want to give a hint, what we call venture capital,
07:27 where if you are in the supply chain of agriculture,
07:32 we are the ones who are paying and contributing.
07:35 Capital infuses up to 40% of the equity of a business.
07:42 So, there are many who can ask for help from our fellow countrymen
07:47 who are doing business and have a desire to do business.
07:51 So, we know that the requirements and terms of these loan programs are different.
07:57 In general, among the ones you mentioned,
08:00 maybe the most common, how low is the interest of the SB Corp loan programs
08:07 and how long are the repayment terms of these?
08:11 Actually, ma'am, first of all, the requirements you mentioned, we speed up the process.
08:16 Under the leadership of our Secretary and under the administration of President Juan Pau Marcos,
08:21 just a simple barangay certificate, they can approach and borrow from us up to 100,000.
08:27 Although beyond that, there are the usual requirements.
08:30 Our payment term is until 3 years.
08:33 Our payment is up to 3 years.
08:36 But in case they will request for longer terms, we can extend it.
08:41 How much is the interest?
08:43 Our interest usually, when it comes to wholesale, meaning through conduits, lending institutions, banks, etc.,
08:51 it is only 3.5 to 6.5% per year.
08:56 But in retail, it is 8% to 12%, which is very minimal.
09:02 Compared to others, how much is it?
09:05 Actually, the cost of money now, the interbank lending rate, borrowing rate, is already 6%, 6.5%.
09:12 So the spread is very minimal. If not, we don't have a spread.
09:15 How low can you borrow and how high?
09:19 We are 30,000, as low as 30,000.
09:22 And as high as 5 million, there is no collateral.
09:25 Imagine, there is no collateral.
09:27 For those who are interested, for those who want to loan, for these programs, where can they go and call?
09:36 Or maybe you have a website because this program is like a bitin.
09:40 For this kind of discussion, websites that can be visited for application and additional information for your programs.
09:50 Yes, we would like to encourage them to go online.
09:55 That is the trend now, digitalization.
09:58 So just log in at brs.sbcorp.gov.ph or they can always visit our website at www.sbcorp.gov.ph.
10:10 Now, if they cannot log in, they can visit any Go! Negosyo Center all over the country.
10:18 We have people there who are in charge of how to do it.
10:24 How can they apply?
10:26 Sir Volk here, we learned a lot from your advisors.
10:31 Just message our fellow countrymen who are watching our program.
10:35 Yes, thank you very much for the opportunity.
10:38 In the name of our President, Mr. Bobby Bastillo,
10:42 we would like to encourage everyone who wants to grow their business, upscale, uplift, or increase their business,
10:53 to visit SB Corp.
10:55 We are here.
10:57 It's not saying that we are trying to displace any sector of the society,
11:00 but we would like to make our services accessible to everyone who wants to add.
11:07 Thank you very much for your time and for our guest,
11:13 the board member of DTI Small Business Corporation, Sir Walter Magpayo.
11:19 Thank you very much.
11:20 Thank you, too.
11:21 Thank you, Dimple.