LOANS extended by state-run Small Business Corp. (SBC) surged by 40% in
the first half, raising the possibility it will exceed its loan growth
target for this year amid healthy demand from microenterprises.
In a statement, SBC said its loan releases totaled P2.1 billion in the
first half, up from P1.5 billion notched in the same period last year.
About half was in the form of wholesale microfinance loans, which
totaled P1.03 billion, up by 129% from last year.
Retail lending rose by 32% to P278.9 million.
By geographic distribution, 62% of the loans went to Luzon, 15% to
Visayas and 20% to Mindanao.
SBC is the Department of Trade and Industry's (DTI) lending arm charged
with implementing programs that support micro, small and medium
enterprises (MSMEs).
"SBC has intensified its partnerships in the banking sector and has also
taken steps in sharing our risk-based lending technology to our partner
financial institutions through seminars and trainings," Benel P. Lagua,
SBC president and chief operating officer, was quoted as saying in the
statement.
The agency has extended a total of P30.9 billion in loans since 2002.
SBC is aiming for a 10% rise in its loan releases this year. This is
despite the projection of a budget shortfall of around P1 to P2 billion
next year, Mr. Lagua said.
"We can still dispense P4.4 billion, even more, by the end of the year,
and still retain our 10% growth target. But we have to start looking at
new resources," he said in an interview.
Mr. Lagua cited options such as capital calls and additional loans to
cover the national government's inadequate budget allocation, but did
not elaborate.
Nevertheless, MSMEs, SBC's main beneficiaries, will still get support as
the Trade department moved to extend the five-year One Town One Product
(OTOP) program that ended in 2010, Merly M. Cruz, head of the Trade
department's Regional Operations and Development group, said in an
interview.
The OTOP program calls for cities and municipalities to identify,
develop, and promote specific products and services with a competitive
business advantage. The Trade departmnet has claimed it had generated
444,709 jobs and P11.197 billion in investments from 2006 to 2010.
The program will be relaunched via the first OTOP National Exposition to
be held this month.
For the extension, the OTOP program is expected to receive P67 million
next year, Ms. Cruz said.
"The OTOP was extended mainly because it is in line with the
government's thrust of poverty alleviation and job-creation in the
countryside," she said.
The OTOP National Exposition is expected to attract at least 250
participants from 72 provinces nationwide. More than half of the
exhibitors will come from the food sector, she added. -- Franz Jonathan
G. de la Fuente
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