Under the Pondo sa Pagbabago at Pag-asenso (P3) program, both micro-enterprises and small and medium enterprises (SMEs) are provided with the option to avail of up to P500K loan. Managed by the Department of Trade and Industry (DTI), here’s your guide on how to apply and process your application to help your business afloat during this coronavirus pandemic.
What are the requirements of DTI’s P3 Loan?
- You need to be a micro or small enterprise owner with at least one year of continuous operations prior to March 2020, and whose businesses suffered a drastic reduction in sales during the epidemic.
- Micro enterprises should have an asset size of not more than Php3 million
- SMEs should have an asset size of not more than Php10 million
How much can I borrow? What is the interest rate? What is the grace period?
- Micro enterprises are granted to borrow at least P10,000 up to P200,000
- SMEs may avail of a loan amounting up to P500,000
- DTI is offering 0.5% per month interest rate (discounted basis)
- The grace period on payments shall be given until such time that the economic crisis has subsided.
What are the loan payment terms?
- The loan repayment term shall be for a minimum of six months up to a maximum of 24 months (exclusive of the grace period) and is subject to regular monthly amortizations.
How to apply and process your application for DTI’s P3 Loan?
As of writing, due to the imposed enhanced community quarantine (ECQ), the head office of Small Business Corporation (SBC), as well as the North, Central, Southern Luzon, and respective desk offices have suspended operations temporarily. This means inquiries are made through respective account officers or P3 coordinators.
Step 1: Complete the application form provided by MFI
- The application form is provided by the microfinancing institutions (MFIs), and there are at least 290 MFIs in the country (See the list here). You can send an email to either P3@sbgfc.org.ph or firstname.lastname@example.org to help you identify and reach out to the nearest MFI. Alternatively, you can call 8651-3333 P3 hotline.
Step 2: Prepare the required documents
Once you have the application form, you will then prepare the supporting documents. The following list is based on the initial list of requirements provided by SBC for its P3 program which means the list is subject to change.
- Government-issued ID;
- Barangay Clearance that should have been issued in the past 3 months;
- Evidence of Micro, Small, and Medium Enterprises(MSMEs) activity for at least one year (certification by LGU and/or other government offices is acceptable among others);
- Proof of one (1) year residence;
- Complete application form
Step 3: Submit the required documents to MFI
- Given that the offices are closed, you’re probably going to be required to submit your application online. You’ll be submitting the requirements to the provided MFI of SBC (see Step 1).
- Once submitted, loans are processed within 12 working days. However, delays are to be expected due to the sheer amount of application during this pandemic.
If you have any questions or clarifications, you can send an email to P3@sbgfc.org.ph or email@example.com. Or, call 8651-3333 hotline.