Saying that micro and small businesses that provide livelihood are losing money, Senator Risa Hontiveros asked the government that they be provided with loans.
“Let’s keep the lights on for micro, small and medium enterprises by providing ‘pay-when-able’ loans to help tide themselves over this unprecedented crisis,” she said.
Hontiveros also pushed for ‘lifesaver’ loans for struggling micro and small enterprises to be included in the Bayanihan to Recover as One Act or the Bayanihan 2.
“Some have closed shop already. Their workers and employees are being laid off. They no longer have the confidence to borrow since they have no assurance of their capability to pay. They need help and support,” she said.
The Senate and House of Representatives are convening the bicameral conference committee to deliberate on conflicting provisions of their respective versions of Bayanihan 2 bills. Bayanihan 2 focuses on providing a more extensive economic relief and rehabilitation measures.
To aid financial rehabilitation and recovery of micro and small businesses, Hontiveros said that pay-when-able’ loans or or loans junior to commercial loans must be provided by government-owned banks such as Development Bank of the Philippines and Land Bank of the Philippines.
She said this will bring back confidendce to both commercial banks and small business owners to enter into a loan agreement.
“Despite partial credit guarantees, private banks are still tentative about lending due to economic uncertainties. And if you are a small
business owner, why will you add more loans?” she asked.
The senator hopes that this amendment be incorporated in the final version of the Bayanihan 2 because it will not only assist firms to settle recurring operational expenses such as interest payments,
utilities, rents and leases, but will also help in continuously paying for the wages of their workers
“These small businesses create jobs. Failure to save them from this economic disruption will push more people to poverty. Huwag nating hayaang tuluyang sumadsad ang mga negosyong bumubuhay sa ating
ekonomiya at mga kababayan” she added.