SSS, other GFIs extends loan to SMEs
Posted on December 10th, 2009
The pension fund provider for private companies’ employees, Social Security System, said it has extended so far a total of P1.2 billion in loans micro, small and medium enterprises. The agency provided the said grants under a credit implemented by government financial institutions.
Romulo Neri, SSS president and chief executive officer, said the loans were released over the past five years under the program called SULONG or the Small Unified Lending Opportunities for National Growth. SULONG was created in order to help businesses whose total assets does not exceed P100 million.
Under the said program, government financial institutions such as SSS extend loans to micro and small and medium enterprises providing them with manageable terms to help them expand and grow their businesses.
Neri said their agency shares in the government’s aim to spur economic growth by helping micro and small and medium enterprises gain wider access to credit through the SULONG program. SMEs make up over 99 percent of registered businesses in the country.
SULONG enabled SMEs to avail of loans of up to P5 million, payable within five years, including a maximum one year grace period. The agency releases the SULONG loans through banks.
Other government financial institutions (GFIs) which extend the SULONG loan program are the Land Bank of the Philippines (Landbank), the Development Bank of the Philippines (DBP), the Small Business (SB) Corp., Quedan Rural Credit and Guarantee Corp., Philippine Export and Import Credit Agency and National Livelihood Support Fund.
Landbank so far extended P93 billion from the program, while DBP extended P54.7 billion. SB Corp. president Benel Lagua said the SULONG program draws its success from efforts of GFIs and stakeholders in the private and public sectors such as the partner financial institutions (PFIs).
He said, “The PFIs help expand the program’s reach since their presence in the rural areas makes it easier for SMEs to access SULONG funds.” Lagua is also the SULONG Finance Committee chair.
According to the data from SB Corp, the government has already granted a total of P170.3 billion in loans for nearly 150,000 SMEs since 2004 through the SULONG program. SB Corp. is the program’s lead convenor.
