An official of the Department of Trade and Industry said micro entrepreneurs around the country will now have access to cheap and easy credit as the Pondo sa Pagbabago at Pag-asenso (P3) will be made available nationwide on May 31, 2017.
“P3 is intended to help the underprivileged Filipino entrepreneurs who want to grow their businesses. With this program, they can access cheap and easy credit without any hassle,” DTI Undersecretary for Regional Operations Zenaida Maglaya said.
“After we’ve launched the P3 in Tacloban, Occidental Mindoro, and Sarangani in January 2017, P3 is now going nationwide. We hope this will encourage micro entrepreneurs to patronize the government’s program so we can eliminate loan sharks,” Maglaya said.
The P1 billion fund of the P3 program from the Office of the President will be coursed through the SB Corp. with accredited partner institutions such as non-bank MFIs, cooperatives, and associations to serve as conduit for the P3 funds. The fund will also give priority to the country’s 30 poorest provinces.
The primary beneficiaries of the P3 Program are microenterprises and entrepreneurs that do not have easy access to credit. These include market vendors, agri-businessmen and members of cooperatives, and industry associations.
Loan amounts to end-borrowers range between P5,000 and P100,000, with no collateral requirement.
The national level conduits are Radiowealth Finance Company (RFC), Taytay sa Kauswagan, Inc. (TSKI), and Mindanao Alliance of Self-Help Societies – Southern Philippines Educational Cooperative Center (MASS-SPECC).
Meanwhile, 18 local (MFIs) are accredited in Luzon, 6 in Visayas and 3 in Mindanao. A total of P104.9 million have been released to P3 conduits as of May 31, 2017.
Following President Rodrigo Duterte’s directive to replace the “5-6” money lending system, the P3 is also seen to help stabilize supply and cost of commodities in public markets, encourage small entrepreneurs to grow their businesses, eliminate loan sharks, and offer employment and generate income for Filipinos.
The P3 Program was launched in Tacloban in Leyte on January 25, San Jose, Occidental Mindoro on January 27, and Alabel, Sarangani last January 30. A total of P7.7 million have been released to individual borrowers in these pilot areas: P3.5 million in Mindoro, P2.2million in Sarangani, and P1.8 million in Leyte. (With DTI report)