The city’s economic stimulus package for micro and small enterprises is good to go.
The city council recently approved the guidelines for the implementation of “Baguio’s Revitalization Actions for a Vibrant Economy-Economic Stimulus Package” (Brave-ESP).
Brave-SP is a loan facility introduced by the city government to mitigate the crippling impact of quarantine measures on local businesses.
Under the guidelines, legitimate businesses undertaken by micro and small enterprises affected by the quarantine measures are eligible for the program.
Micro enterprises are those having annual gross receipts of up to P3 million while small enterprises are those having gross receipts of P3,000,001 to P15M.
Loan amounts range from P10,000 up to P100,000. For micro enterprises, the maximum loanable amount is P50,000. For small enterprises, the ceiling is P100,000.
The loan has no interest. However, loans payable within 12 months shall have a six percent service charge while loans payable for more than a year shall have an eight percent service charge.
A monthly penalty rate of 0.5 percent on the outstanding balance shall apply to borrowers who fail to pay their monthly amortization.
To qualify, the enterprise must be 100 percent Filipino-owned; operating for at least one year prior to March 16; affected by the imposition of the quarantine measures; operating in Baguio City; and have a favorable credit checking result.
The business should not be subscribed to similar economic packages offered by other government institutions. A co-maker shall be required if the borrower is 60 years old and above.
Mayor Benjamin B. Magalong asked the council to approve the ordinance earmarking P100M for the package.
The money was sourced from the unspent portion of the P150M Covid-19 operations fund. – PIO release
April 25, 2024
