City expands BRAVE-ESP to cover more small, micro biz
The city council has approved the amended guidelines of the 2020 Baguio’s Revitalization Actions for a Vibrant Economy-Economic Stimulus Package (Brave-ESP).
The old guidelines set a limit of P50,000 as the maximum loanable amount for micro enterprises and P100,000 for small enterprises. Under the amended guidelines, both small and micro enterprises can now loan up to P200,000.
Start-up businesses can also now loan through the Brave-ESP for a maximum amount of P50,000 as a new component of the program.
Enterprises that availed of similar packages from other government institutions are now eligible for Brave-ESP. The applicants will be assessed based on their capacity to pay.
The interest rate still remains at zero percent, but a six percent service fee shall apply and to be deducted immediately from the approved loan.
For loans P50,000 and below, repayment shall be for a minimum of six months up to a maximum of 12 months, exclusive of the grace period.
For loans above P50,000, the repayment shall be for a minimum of six months to 30 months, exclusive of the grace period. All borrowers shall be given a grace period of six months.
In July 2020, the city government entered into a partnership with Small Business Corporation (SBC) for the implementation of Brave-ESP, a financing facility created to mitigate the impact of the Covid-19 pandemic on business operations in the city.
All SMEs affected by the community quarantine may avail of the stimulus package to recoup their losses.
As recommended by SBC and the Local Finance Committee, Mayor Benjamin Magalong proposed the amendment of some terms of the guidelines to encourage more business people in the city to avail of the loan package and to make the program “more responsive to the needs of the target beneficiaries.”
The City Treasury Office reported as of July 19, only 213 applications were approved totaling P8,767,000 of the P31,751,120.84 available for lending. – Jordan G. Habbiling