Government Bares Menu of COVID-19 Crisis Rehab Programs for Co-ops
The Cooperative Development Authority has announced on its website the programs of the National Government that co-ops can avail of. These programs will help co-ops and their members to cope during the current COVID-19 Crisis, as well as after the crisis.
With the quarantine being imposed nationwide, most businesses have seen revenues slashed as most of the country has been at a stand-still with people advised to stay home.
The Department of Trade and Industry (DTI) the Livelihood Seeding Program – Negosyo sa Barangay (LSP-NSB). This is seen as a major help for many co-ops, as many of their members – borrowers and depositors – are small entrepreneurs. Many co-ops, by themselves, engage in small and medium-scale enterprises as well.
The allotted funding for the LSP-NSB amounts to PhP203 million, which will be used to provide a package of livelihood kits and business advisory assistance and services, amounting to at least PhP5,000 up to PhP8,000 to MSMEs affected by natural and human-induced calamities including health disasters.
The LSP-NSB Guidelines was revised to align and make it more responsive to the government directives on the COVID-19 situation. The coverage of the program was expanded to give priority assistance to MSMEs affected by health disaters arising from epidemics and pandemics.
Interested parties may e-mail bsmed@dti.gov.ph for more information.
The Small Business Corporation now offers the Enterprise Rehabilitation Financing facility that offers loans to small businesses from P10,000 to P200,000 for micro enterprises (assets not exceeding P5 Million), and up to P500,000 for small businesses (assets below P10 Million).
These loans are collateral-free and interest rate of 2.5%.
To secure the country’s food supply during and after the COVID-19 Crisis, the Department of Agriculture (DA) launched Ahon Lahat, Pagkain Sapat that rolls out “immediate intervention for food production and availability, food accessibility, affordability and price stabilization.”
Key sectors targeted are rice, corn, livestock, poultry, vegetables, coconut, urban farming, procurement and marketing.
Employment and work has been severely crippled due to the quarantine. The Dept. of Labor & Employment responded with TUPAD or Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers.
TUPAD is a community-based package of assistance that provides emergency employment for displaced workers for 10 to 30 days, depending on the nature of the work to be performed.
Areas of work include repair, maintenance or improvement of common public facilities like schools, health centers, roads, post-harvest facilities, public markets, tree planting, and declogging canals.
For six years, co-ops have been conduits of the Dept. of Social Welfare & Development’s Pantawid Pamilyang Pilipino Program or 4Ps. The DSWD has continued the program in partnership with some co-ops.
During the quarantine, public utility vehicles were prohibited to operate, and drivers and their families suffered economically. The DSWD offers the Social Amelioration Program for Drivers benefitting jeepney, taxi, van, bus, school bus, tricycle, and motorcycle drivers.
The LANDBANK, through the I-RESCUE Lending Program, provides additional funds and loan restructuring under more flexible terms and conditions to eligible borrowers — Small and Medium Enterprises (SMEs) and co-operatives.
An initial fund of P10 Billion has been set, available until December 31, 2020.
Co-ops can avail of the Wholesale Lending Livelihood Financing – to augment credit fund for on-lending to their members who are Small Farmer and Fishers (SFFs) and operators of Micro, Small and Medium Enterprises.
Loan terms may reach a maximum five years. Interest is at 5% per annum (p.a.) fixed for three (3) years, and subject to annual repricing thereafter based on one (1) year BVAL reference rate plus a spread based on credit rating, however, the interest rate shall not be lower than 5% p.a.
The COOP-NATCCO Partylist and the Philippine Cooperative Center (PCC) have lobbied for the interest rate to be lowered to down to 2%.
The Agricultural Credit Policy Council offers a loan facility called ‘Plant, Plant, Plant.” Farmers and fisherfolk can borrow non-collateralized loans of P25,000 at zero interest and payable in ten (10) years.
Further, eligible MSEs may borrow up to P10 million at zero interest payable up to five years.
COVID-19 may be very small but its effect on the economy is severe. The Development Bank of the Philippines (DBP) now offers Rehabilitation Support Program on Severe Events (RESPONSE). Public and private institutions in calamity-hit areas may apply for assistance.
Private institutions may enjoy loan terms of up to 10 years, inclusive of three-year grace period.
Cooperative banks – being regulated by the Bangko Sentral ng Pilipinas – can avail of the Philippine Guarantee Corporation’s Credit Guarantee Program for MSMEs. It features loans of up to P50 Million until December 2020.