The administration of President Ferdinand Marcos Jr. has rolled out a ₱4-billion emergency financing program to support micro, small, and medium enterprises (MSMEs) grappling with rising fuel prices and global supply chain disruptions.
Executive Secretary Ralph Recto announced Friday that the President approved the multi-billion peso package to provide immediate financial relief to small businesses facing tightening cash flows.
Strategic Support for MSMEs
The program will be implemented through the Small Business Corporation, the financing arm of the Department of Trade and Industry (DTI).
It is designed to improve access to credit for MSMEs, which often struggle to secure loans from traditional banks, especially during periods of economic instability.
“The President has envisioned this as a lifeline to MSMEs,” Recto said, noting the sector’s long-standing difficulty in accessing affordable financing even under normal conditions.
Rising global oil prices—driven in part by escalating geopolitical tensions in the Middle East—have also increased transport and logistics costs, further straining small enterprises across the country.
Key Features of the Financing Program
- Loan assistance ranges from ₱30,000 to ₱20 million, depending on eligibility and business needs.
- Repayment terms of up to five years.
- A one-year grace period with zero interest and no initial amortization requirements.
- Competitive interest rates lower than those offered by commercial lenders.
Faster, Fully Digital Processing
To speed up distribution of funds, the government will implement a fully online application system, eliminating much of the traditional paperwork and in-person processing requirements. Approval decisions are expected within seven to ten days.
Officials said the streamlined digital approach is intended to ensure that assistance reaches affected MSMEs quickly, helping stabilize operations and preserve jobs.
The initiative forms part of the broader government effort to strengthen economic resilience by supporting MSMEs, which comprise the majority of businesses and employment in the Philippines.