February 1, 2016
MAKATI CITY – The Department of Trade Industry (DTI) formally launched the Pondo sa Pagbabago at Pag-asenso Program or P3, a micro financing program intended for small entrepreneurs, in Tacloban City in Leyte on January 25; San Jose, Occidental Mindoro on January 27; and Alabel, Sarangani Province on January 31, to help eradicate poverty, and promote business and employment among Filipinos.
Following President Rodrigo Duterte’s directive to replace the “5-6” money lending system and provide an affordable micro-financing for the country’s micro, small and medium enterprises (MSMEs), the P3 funding program provides microenterprises an alternative source of financing that is easy to access and made available at a reasonable cost.
“The P3 program is one way of helping the underprivileged by giving better chances to elevate from poverty. Aside from the fund, the DTI thru the Negosyo Centers will assist the MSMEs with programs suitable to their needs such as access to market, access to financing, and mentorship,” DTI Secretary Ramon M. Lopez said.
The identified areas are considered among the 30 poorest provinces poorest in the country.
A total of 92 micro borrowers where initially identified to receive loan grants ranging from P5,000.00 to P100,000.00.
Sec. Lopez also reiterated the administration’s desire to provide livelihood to those who are at the bottom of the pyramid.
“Why micro entrepreneurs? The desire and mandate of our president is to help those who do not have much. If they fail to be employed, we help them to start a small business,” he said.
The primary beneficiaries of the P3 Program are microenterprises and entrepreneurs that do not have easy access to credit or accessing credit at a very high interest cost. These include market vendors, agri-businessmen and members of cooperatives, industry associations and co-operators.
The Small Business Corporation, an attached agency DTI shall administer the P3 Program. Aside from creating a Program Management Office to oversee the management and monitoring of the P3 Fund, SB Corporation will make use of its lending network and the DTI Negosyo Centers in reaching out to P3 beneficiaries.
Loan amounts to end-borrowers will be in the range of P5,000 to P100,000, at a maximum interest rate of 2.5% per month, with no collateral requirement.