Paez proposes P200-b loan fund for MSMEs

Daang Matuwid Coalition senatorial bet Congressman Cris “Mr. Coop” Paez welcomed the proposal to a presidential candidate to earmark P1 billion per region credit facility for micro small and medium enterprises (MSMEs) but added the present administration has a better program in place and needs to be sustained.

Under the Daang Matuwid Coalition, a P200 billion loan fund for MSMEs is doable.

What needs to sustained are the programs under the Daang Matuwid which offers direct assistance to poor families and MSMEs. Among these are the Sustainable Livelihood Program of thd Dept. of Social Welfare and Development (DSWD), which offers “graduates” of the 4Ps or those 4Ps beneficiaries who are ready to become micro or small enterprises.

The bigger opportunity for MSME’s Paez said is the newly signed Credit Surety Fund Cooperative Act of 2016 or RA 10477. Under the new law passed under the Aquino administration and principally authored by Paez, MSMEs can now loan from banks without collateral.

This collateral-free loan system is made possible by the setting up of a Credit Surety Fund by cooperatives, the Landbank, DBP, the Industrial Loan Guarantee Fund and the Bangko Sentral ng Pilipinas. What ever fund raised under CSF translates to tenfold  loan fund for MSME.

The target for this year is to make available at least P5 billlion MSME loan fund.

Paez said that he would propose that a significant portion of the planned 100 billion fund for an enhanced Bottom-Up Budgeting being proposed by administration standard bearer Mar Roxas be earmarked as government contribution to the CSF.

“I will propose P20 billion government counterpart for the CSF, which could be sourced from President Roxas’ P100 billion enhanced BUB fund and that could translate into P200 billion loan funds for CSF,” Paez said.

Under this program, inclusive growth will have broader and far deeper impact, he added. (advt)