DTI opens 13th month loan facility

Small Business Corp., the financing arm of the Department of Trade and Industry vowed Friday to process and release all approved loan applications for the 13th month pay before Christmas.

DTI Secretary Ramon Lopez told  micro and small enterprises present during the ceremonial launch of the 13th Pay Loan Facility Friday that the government would ensure the quick and timely release of loans.

“The government wants to extend assistance to help micro and small companies hurdle the payment of 13th month pay to employees,” he said.

There were about 77 loan applications received by SB Corp. as ofNovember 12, 2021. The agency has approved 32.47 percent or 25 loanapplications with a combined value of P5 million.

SB Corp. president Ma. Luna Cacanando assured borrowers of, at most, 5 days processing time including approval before the Bank may release the loan.

From a P200 million allocation, the DTI increased the total amount to P500 million to allow more companies and employees to benefit from the facility.

The DTI also doubled the number of employees per company who will benefit from the program from 20 to a maximum of 40 employees.

There are about 11,000 workers from micro and small enterprises who are in the flexible work arrangement. Out of this, only 8,000 will be qualified for the loan facility.

Qualified applicants to the program are micro and small enterprises that are registered with the Department of Labor and Employment for flexible work arrangement as of October 15, 2021.

Also qualified are micro and small enterprises that were grossly affected from March 16 2020 onwards but had since reopened prior to November to 2021.

And third are micro and small enterprises that are registered with the Department of Labor and Employment as having downsized or reduced their workforce due to the COVID-19 pandemic but are still operating.

The DOLE defines micro and small enterprises based on the number of their employees. Micro enterprises are those that have 1 to 9 employees while small enterprises are those that have 10 to 99 employees.

According to the SB Corp. the maximum loanable amount is computed at P12,000 per employee, multiplied by the number of employees of the company. This means the maximum loanable amount per company is around P480,000.

All 13th month loans are collateral-free at 0 interest but will carry 4 percent one time service fee, with a 3 months grace period. The loans are payable within 12 inclusive of the 3 months grace period.