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MANILA – State-run Land Bank of the Philippines (Landbank) on Thursday reported that outstanding loans to micro, small and medium enterprises (MSMEs) already amounted to almost PHP50 billion as of end-June.
In a statement, Landbank said loans to MSMEs in the first half of the year reached PHP49.5 billion, benefitting over 6,100 borrowers in support of business expansion and acquisition of fixed assets, among others.
“Landbank recognizes the crucial role of MSMEs in advancing economic development and job generation. We will continue to work with various government partners to grow our loan portfolio for the sector and open more opportunities for our local entrepreneurs,” Landbank president and chief executive officer Lynette Ortiz said.
Aside from its regular loan facilities, the bank has been offering special lending programs dedicated to the needs of MSMEs and aspiring entrepreneurs.
Landbank's Interim REhabilitation Support to Cushion Unfavorably-affected Enterprises by Covid-19 (I-RESCUE) lending program, for instance, provides credit and loan restructuring assistance to MSMEs severely affected by the pandemic under more flexible terms and conditions.
The bank launched the lending program in 2020 and has raised PHP60 billion in the available loanable fund to accommodate more borrowers. This will be available until the end of the year.
Aside from I-RESCUE, Landbank also offers financial assistance to women-owned or led MSMEs by financing working capital, construction or renovation of buildings and facilities related to business operations, as well as purchase orders from the borrower’s clients.
The bank also partnered with the Overseas Workers Welfare Administration (OWWA) to assist overseas Filipino workers (OFWs) who want to have loanable funds for working capital or the acquisition of fixed assets, among others.
Landbank is also financing new and existing franchisees for new business ventures or expansion of existing businesses covering funding for working capital, fixed asset acquisition, and capital expenditures.
In partnership with the Department of Science and Technology-Technology Application and Promotion Institute, the bank also offers credit assistance for Filipino inventors, MSMEs and large enterprises to help commercialize their new and innovative technologies. (PNA)
