SBC has been reminded to deploy the remaining 2022 microlending funds to the MSMEs to mitigate the impact of inflation.
Rep. Bernadette Herrera reminded the Small Business Corporation (SBC) to disburse all 2022 microlending funds they currently have until December 31.
SBS is an affiliate and the financing arm of the Department of Trade and Industry (DTI) with the mission of providing financial initiatives for Micro, Small, and Medium Enterprises (MSMEs).
Microlending is one of the most immediate and effective ways to mitigate the impact of high inflation, fuel prices, and bank financing rates.
Because SBC will receive the new 2023 microlending funds in next year's budget, any remaining 2022 SBC loanable funds for MSMEs should be distributed by end of the year in accordance with the 2022 General Appropriations Act.
SBC received a P2 billion national government subsidy for the “Pondo para sa Pagbabago at Pag-Asenso (P3)” which is a microfinance program for the MSMEs.
“By now, SBC should have addressed their personnel shortages they complained of months ago.” Herrera said.
However, SBC replied that they were unable to swiftly disburse their P3 program funding because their personnel complement was insufficient to satisfy the high volume of P3 microlending applications.
If SBC will not be able to attend to this situation, they would be held accountable in the weeks ahead.
Herrera said that the DTI should deploy discounted consumer goods with the holidays nearing.
DTI can do strategic deployment of discounted consumer products and noche buena items to groups of informal settlers in the coming weeks because they are the ones who need those discounted goods the most.
“They can deploy in November and build up to December so the poor in informal settler communities in the cities can have food and necessities to make it through Christmas and into the new year.” Herrera added.
Tags: #SBC, #Funding, #Inflation, #DTI