MANILA - The House of Representatives yesterday adopted a resolution requesting President Rodrigo Duterte to allocate P6 billion in the 2019 budget for the micro-lending program of the Department of Trade and Industry for micro, small and medium enterprises.
House Resolution No. 1771 highlighted the need to increase the budget for the government’s Pondo sa Pagbabago at Pag-asenso (P3) program to provide MSMEs, most especially, micro enterprises an alternative source of financing that is easy to access and made available at a lower interest rate.
The resolution, authored among others by Rep. Jocelyn Limkaichong (Neg. Or., 1 st District), said there is a need to increase the budget for the P3 Program to cover at least 20 percent of the estimated P30 billion portfolio of the '5-6' money lending scheme borrowers.
The DTI’s P3 program, implemented through the Small Business Corp., has a yearly appropriation of P1 billion.
The resolution noted that the P3 program is in line with Duterte’s directive to replace the "5-6" money lending scheme, as well as with the Philippine Development Plan 2017-2022 to simplify loan processes for MSMEs.
The resolution added that MSMEs comprise 99.57 percent of all businesses in the country, of which 89.63 percent are micro, 9.5 percent small, and 0.44 percent medium enterprises.*PNA
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