DBP commits funds for MSMEs.
State-owned Development Bank of the Philippines (DBP) on Monday 'renewed its pivot' to support developing the micro, small and medium enterprises (MSMEs) with the launching of two new programs aimed at providing greater credit access to small business owners and poultry owners, according to its top official.
DBP President and Executive Officer Cecilia Borromeo said the DBP Small Business Puhunan Loan (SBPL) and DBP Broiler Contract Growing Programs (BGCP) manifest the government financial institution's commitment to enhance the capability of small entrepreneurs in the country and boost entrepreneurship.
'These two programs are designed to remove the barriers that impede the growth of MSMEs, such as lack of access to bank financing and slow loan processing,' Borromeo said in a spot interview at the sidelines of the event held in Makati City.
'Our hope is that through these initiatives, more entrepreneurs will be able to sustain their businesses and contribute to the growing economy,' Borromeo added.
Borromeo said the recent recognition given to DBP by The Asian Banker-Philippine Country Awards as SME Bank of the Year in 2017 serves as a motivation to give more focus this year. With assets reaching P597 billion in 2017, she said DBP has a large headroom for granting loans to MSMEs. 'We want to grant more loans to the MSMEs,' she pointed out.
She said DBP can sustain the growth in 2018. She added these programs could help spread the word that DBP is catering to the MSMEs.
Also, Trade Undersecretary Zenaida Maglaya said the Department of Trade and Industry (DTI) will continue implementing its capacity-building programs through seminars on entrepreneurship, proper management of the business, product improvement, to help make products saleable and more attuned to the market and opening up the markets and boosting the One Town, One Product program. 'These programs will complement the latest initiatives of the DBP,' Maglaya said.
To ensure the small entrepreneurs are on the right track, Maglaya said the DTI's mentoring program, called Mentor ME (Micro Entrepreneur), is a continuous process of guiding MSMEs and handled by successful micro entrepreneurs.
With its 800 Negosyo Centers around the country, Maglaya said the DTI can now inform their clients who want to avail themselves of the financial assistance offered by DBP to expand their business. From its Pondo sa Pagbabago at Pagasenso, Maglaya said DTI can refer their clients to the DBP programs to expand their businesses.
With its limited branches, Borromeo said the DBP can reach out to its MSMEs clients in the far flung areas of the country by partnering with the rural banks, credit cooperatives and microfinance institutions. 'We're looking for all of these potential partners for the country, so we can reach out to more micro entrepreneurs,' she said.
Borromeo said DBP launched these programs because the bank was associated in the recent past with the big-ticket infrastructure projects.
'We believe that MSMEs should benefit from all of these infrastructure projects. We should also pay equal attention to them.
We are taking this seriously to promote inclusive growth,' she said.
The SBPL offers a minimum loan of P300,000 up to a maximum of P1 million. Meanwhile, the BGCP will grant a loan amounting to 80 percent of the total project cost.
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|Publication:||Business Mirror (Makati City, Philippines)|
|Date:||Feb 5, 2018|
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