SB Corp. loan releases to MSMEs reach P3.8 billion
Published on Sunday, 17 February 2013 18:41 Written by Jennifer A. Ng /
Reporter
LOANS extended by the Small Business Corp. (SB Corp.) to micro, small
and medium enterprises (MSMEs) declined by 2.5 percent on year to P3.8
billion in 2012, from P3.9 billion the year before.
"Unlike in previous years, the corporation's wholesale lending program
experienced a slight dip with the bigger banks having access to
lower-cost funds," SB Corp. said in a statement posted on its web site.
SB Corp., an attached government financial institution (GFI) of the
Department of Trade and Industry, provides direct financing for MSMEs
needing additional capital.
The GFI said its credit guarantees jumped by 119 percent on year to
P87.9 million in 2012, from P40.2 million the year before. The number of
SMEs guaranteed also increased by 96 percent to 49 last year from 25 in
2011.
Benel P. Lagua, SB Corp. president and chief operating officer, said
loans posted last year brought the corporation's total funding for MSMEs
to P38.5 billion as of 2012.
The SB Corp.'s retail lending to MSMEs increased by 7.9 percent on year
to P580.45 million in 2012, from P537.84 million the year before. The
wholesale lending program amounted to P1.3 billion. This amount was
released to 126 partner-financial institutions, a 13-percent increase
from 111 in 2011.
"Last year the corporation's wholesale microfinance lending reached
P1.77 billion. Out of this amount, P366.2 million was released to 12 out
of the 19 poorest provinces in the country through the Rural
Micro-Enterprise Promotion Program [Rumepp]," Lagua said.
The Rumepp is a seven-year rural microfinance program that is funded by
the International Fund for Agricultural Development. It complements the
government's programs for poverty alleviation by providing sound credit
delivery that is matched with business development services.
South Luzon, including Metro Manila, still has the bulk—55 percent—of
the SB Corp.'s loan portfolio. Mindanao increased its portfolio share to
24 percent; the Visayas, 16 percent; and North Luzon, 5 percent.
"Over the past few years, the SB Corp.'s loan releases have been kept
steady at the P4-billion level with no new fund infusion, despite the
increase mandated by Republic Act 9501, or the Magna Carta for Micro,
Small and Medium Enterprises, which was passed in 2008," Lagua said.
As of 2012, acquisition on the SB Corp.'s mandatory allocation
instruments reached P15.35 billion. Also, the acquisition of MSME notes
reached P1.18 billion last year, a 6-percent increase from P1.11 billion
in 2011.
Eighty-nine banks availed themselves of these MSME notes. Of the number,
53 are rural banks. Eight rural banks have subscribed to the GFI's
preferred shares with a total acquisition of P28.4 million.
"The proceeds from these instruments support the corporation's
capacity-building programs for MSMEs and financial institutions
servicing MSME financing requirements," Lagua said.
The SB Corp. has also capacitated 22 rural banks on the use of
risk-based lending technology, and trained 82 participants from 71
enterprises on enterprise enhancement, business-performance analysis,
computerized accounting systems and financial record keeping. Through
its Enterprise Enhancement Program, SB Corp. trained nine enterprises on
making business plans.
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CARLOS ANI - Consultant
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