P3 LENDING PROGRAM. President Rodrigo Duterte and Trade Secretary Ramon Lopez (center) during the launch of Pondo sa Pagbabago at Pag-Asenso or P3 Program in Tacloban in 2017. The P3 program provides low interest rate lending for small-scale businesses. (Photo courtesy of DTI)
MANILA – President Rodrigo Duterte said on Monday over 219,000 underprivileged microentrepreneurs have benefitted from the government’s lending program Pondo sa Pagbabago at Pag-Asenso (P3) program of the Department of Trade and Industry (DTI).
In his last State-of-the-Nation Address (SONA), Duterte said his administration has provided an alternative lending program for small-scale businesses for them to avoid borrowing money and capital from loan sharks like the ‘5-6’ lending scheme.
He said micro, small and medium enterprises (MSMEs) comprised 99.6 percent of business establishments in the country and are “vital to the economic activity, job creation, and poverty reduction”.
“Iparamdam natin ang ating malasakit sa maliliit na negosyante sa pamamagitan ng Pondo sa Pagbabago at Pag-Asenso program. (Let us show our concern for small businesses through the Pondo sa Pagbabago at Pag-Asenso program),” the Chief Executive said.
The DTI launched the P3 program in January 2017 as Duterte ordered the government to provide an affordable microfinancing program for MSMEs.
Data from DTI showed that since 2017, a total of PHP8.65 billion worth of loans were released to 219,568 borrowers.
The DTI has also partnered with some 443 conduits to roll out the program nationwide.
P3’s initial fund came from the Office of the President, and was coursed through DTI’s financing arm Small Business (SB) Corp.
Starting 2018, the DTI allocated PHP1 billion annually for the P3 program.
The P3 microfinance program only charged 2 percent to 2.5 percent interest compared to the 20-percent interest rate in the ‘5-6’ lending scheme.
MSMEs can borrow an amount of PHP5,000 to PHP100,000 from the P3 program.
Amid the coronavirus disease 2019 (Covid-19) pandemic, the P3 program extended to Covid-19 Assistance to Restart Enterprises (CARES) program —a zero-interest loan for MSMEs that were affected by the lockdowns brought by the global health and economic crisis.
Under the Bayanihan to Recover as One (Bayanihan 2), PHP10 billion was allocated for the MSME lending program.
However, the Department of Budget and Management only released PHP8 billion to SB Corp.
Of the released budget, PHP4 billion is allotted for existing MSMEs and PHP4 billion for enterprises in the tourism sector.
As of July 6, DTI Secretary Ramon Lopez said PHP4.57 billion of loans were extended to 30,345 MSMEs under the CARES program alone.
The SB Corp. continues to roll out the loan program. (PNA)
