The Small Business Corporation (SBC) reported 397 micro and small businesses in Baguio availed zero interest loans under the Baguio’s Revitalization Action for a Vibrant Economy – Economic Stimulus Package (Brave-ESP) from 2020 to July 20.
In her report during the quarterly meeting of the Baguio City Small and Medium Enterprise Development Council recently, SBC representative Julie Ann Castaneda said of the total approved loan applications, 324 were micro enterprises and 73 were small businesses.
The approved amount of loans amount to P20.5 million chargeable against the funds that were earlier earmarked by the local government under the Brave-ESP.
Earlier, the SBC received 528 applications for loan under the said program where 131 applications were either denied or withdrawn.
The SBC is the financial arm of the Department of Trade and Industry that is providing soft loans to various businesses.
Reasons for the denial of the loan application include alleged failure to produce documents of their businesses, negative findings of the credit investigation, and inability to prove sustainability of their businesses based on their financial statements.
Castañeda added that there are three processes being conducted by the SBC prior to the approval of the loan applications such as the business information assessment, credit standing assessment, and financial performance assessment to ascertain the sustainability of the businesses availing of the loans offered to interested businesses.
One of the major reasons for the denial of the loan applications of businesses is that they pass through third parties, which are not allowed under the SBC’s rules and regulations. – PIO release