The Local Finance Committee presented to Baguio Mayor Benjamin Magalong in a management committee on May 28 the stimulus package for micro, small, and medium enterprises affected by the coronavirus disease-2019 (Covid-19) pandemic.
The proposed amounts that MSMEs can borrow are P30,000 for micro enterprises; P50,000 for small enterprises; and P100,000 for medium enterprises.
City Budget Officer Leticia Clemente said the amount will come from the P150 million allocated by the city council as response fund for the Covid-19.
Of the amount, P100M will allotted for the loan package of MSMEs and the rest will be used for the other stimulus packages for some sectors identified by the City Mayor’s Office.
The loan is free of interest, no collateral, and payable in 24 months, beginning on the third month from the release of the loan.
Data from the City Treasurer’s Office show that MSMEs contribute largely to the income of Baguio.
Of the 23,000 registered businesses in the city last year, 20,484 are micro enterprises that contributed P98M in the city’s business taxes last year.
Small enterprises numbering 2,074 contributed P58M, medium enterprises numbering 438 contributed P72M, and large enterprises numbering 63 contributed P53M.
To avail of the loan, the MSME should be 100 percent Filipino-owned, have been operating for a minimum of one year, with business permit, and registered with either the Department of Trade and Industry or the Securities and Exchange Commission.
The LFC will screen applications beginning June 4 and will end on the fourth week of August.
Clemente said the LFC is coordinating with the Small Business Corporation for credit investigation.
For the second tranche of the stimulus package, Clemente said the LFC is looking at realigning funds for the hiring of personnel or defer projects that are not urgent.
Those targeted in the second tranche are those in the informal or underground economy.
To avail of the loan, the LFC is encouraging informal businesses to register and secure a business permit.
Clemente said the city government will not charge business taxes to those in the informal economy on their first year of operation. – Rimaliza A. Opiña