Guide on Small Business Loans – How Much SMEs may Borrow
SMALL BUSINESS LOANS – The government is offering business loans for SMEs to assist them in their workers’ 13th-month pay.
The COVID-19 pandemic has affected a lot of businesses in the Philippines. Not only the small and medium enterprises but some giant businesses also suffered losses amid the crisis. Meanwhile, for the latter, they have backup funds or reserved capital that they can use to keep the business running and the employees fully compensated.
With regards to the small businesses, many SME owners now are struggling on how to pay their employees with the 13th-month pay that is mandated under the law. Every worker must receive the average of the total basic salary that he or she was paid with in 12 months.
To help the small businesses that are struggling now amid the crisis, the government is offering small business loans so they can give their workers’ 13th-month pay.
Based on a report on ABS-CBN News, the small business loans are offered by the Small Business Corp (SB Corp) which is an agency under the Department of Trade and Industry (DTI). The agency aims to assist the giving of the 13th-month pay of up to 40 workers in one business.
How much is the loanable amount under the small business loans offered by SB Corp? According to the report, a small business may borrow up to P12,000.00. There are differences in the requirements needed in applying for the loan.
For businesses with four (4) employees and below, only a barangay permit, a bank account, and a valid ID issued by the government are needed. Based on the article, for those businesses with more than four (4) workers, you must present a corporate secretary authorization in applying for the loan and as well as the Mayor’s permit.
Do you want to check if you are qualified to apply for these business loan offers? You may visit – Business Loans: Qualifications in Applying for Loan for Workers’ 13th-Month Pay.