Small Business Corp. (SB Corp.), a subsidiary of the Department of Trade and Industry (DTI), used 32,823 Covid-19 Assistance cases to restart the Enterprise (Cares) program using fully digitized loan applications. Said he approved the loan application. system.
In a statement, SB Corp. it is said to be 5.1 billion pesos out of the 8.08 billion pesos available to micro, small and medium-sized enterprises (MSMEs), tourism businesses, cooperatives, hospitals, and returnees or displaced persons abroad. He said it was the equivalent of a peso. Covid-19 Filipino workers (OFW) affected by the pandemic.
Cares is an interest-free, unsecured finance program designed to help MSMEs recover from the negative effects of the pandemic.
The MSME borrower only has to pay a one-time service fee of up to 8% over the four-year loan period.
SB Corp. fully digitized the lending process shortly after last year’s blockade.
SB Corp. Evelyn Felias, head of the information technology group, said he planned to digitize financial services as early as 2019 and was able to do so when the blockade began.
The digital process begins with registering potential borrowers, submitting and approving documentary requirements for issuing a loan.
In a previous forum, Commerce Minister Ramon Lopez said that as of last September, about 73% of Filipino SMEs needed capacity building initiatives or support to digitize their businesses.
DTI conducted a survey and noted that the Philippines is lagging behind its neighbors in the Association of Southeast Asian Nations (Asean) and is adapting digital transformation to its business.
The Philippines has stated that it is at “zero” or “sub-baseline” in the ASEAN business digitization category.
ASEAN SMEs fall into major categories when using email and mobile devices in their business. The intermediate category is when you start selling online, while the extended category uses data analytics in your business.
Jean Pacheco, deputy secretary of state for the DTI e-commerce program, said in light of the statistics that the e-commerce roadmap gives MSME an opportunity to recover by providing national and international services to MSME. He said he is working to innovate and deliver programs based on 2022. Market access, digitalization, logistics integration.
“23% [our] The respondents have mobile phones, but they only use them for personal purposes, not for business. This is what we are trying to do in DTI. In the digital transformation process, we need to define what level or category they belong to so that we can ensure the right intervention for a particular MSME, ”said Pacheco.
Pacheco cited a 2021 digital report showing that 80% of internet users buy something online, saying business digitization, especially e-commerce adoption, will accelerate. ..