Manila Mayor Joseph Estrada has provided P380,000 in capital assistance to another batch of Manileños who have successfully put up their own micro and small businesses.
Estrada said the additional capital will help aspiring entrepreneurs maintain their financial stability and expand their businesses—the focus of the Capital Assistance Program he established after assuming office in 2013.
CAP is also offered to street hawkers in Divisoria and public markets in Manila to help them increase their profit and improve their economic standing.
“These micro and small businesses are the foundations of our nation’s economy. We at the city government are committed to assist and empower the thousands of underprivileged Manileños to beat poverty,” the mayor said during the ceremonial awarding of financial aid to 38 beneficiaries at the city hall.
“In other loans, you have to pay high interest rates. But here, loans are interest-free,” he told the beneficiaries.
Each business owner-beneficiary was loaned P10,000 payable from six to 10 weeks with no interests or collateral, which they could use to run their business ventures.
Awarded were 21 business owners from District I; five from District II, four from District III, four from District VI, and four from Baseco. Those from Districts IV and V were not yet included because they have not fully paid their earlier loans.
The CAP, Estrada stressed, is intended to support Republic Act 9178 or the Barangay Micro Business Enterprises Act of 2002, which seeks to strengthen micro-businesses in the country and provide more jobs, livelihood and a better quality of life for Filipinos.
“That’s why we are doing everything we can in order to help out our fellow poor families. Before, we have offered a P5,000 loan. Now it is P10,000. This would help you out in starting your own business,” Estrada pointed out.
The 38 beneficiaries have previously secured loans of P5,000 from the city government and have been able to pay up, thus were given another loan, according to Nanet Tanyag, chief of the Manila Department of Social Welfare.
“They have good credit record. They have been successfully running their small businesses. These are the ones we want to help, to let their businesses grow,” Tanyag said.
The 38 micro-entrepreneurs own eateries, small barber shops, beauty parlors, sari-sari stores, manicure-pedicure, fruit and fish vending, mini grocery, junk shop, accessories vending, RTW buy-and-sell, pre-owned goods, peanut butter making, and processed food vending, according to the MDSW chief.
Tanyag stressed it is Estrada’s aspiration to see these all these small-scale businesses grow and expand in the future, the reason the city government is pursuing CAP.
Last July, Estrada released P5.54 million in capital assistance fund to 1,109 beneficiaries, who were first-time applicants to the program.
Through free lectures and trainings, the beneficiaries are also taught the rudiments of business management and operation to effectively run their community-based businesses, Tanyag said.
On February 2016, a total of 2,624 CAP beneficiaries applied and were able to secure loans amounting to P13.1 million. These were followed by another batch of 532 on the second semester of the year.
This February, Estrada released P607,000 to a batch of 108 “second- timers” or those who have repaid the initial seed fund loaned to them by the city government last year.