SANTA, Ilocos Sur, May 30 (PIA) - The local government unit (LGU) of Santa, in partnership with the Nueva Segovia Consortium of Cooperatives (NSCC), offers the Recovery Investment for Santanian Entrepreneurs or Santa RISEs, a loan assistance program for micro, small and medium enterprises (MSMEs) that were adversely affected by the coronavirus disease 2019 (COVID-19) pandemic.
Mayor Jesus Bueno Jr. and Dr. Divina Quemi, chief executive officer of NSCC, signed the memorandum of agreement for the implementation of the Santa RISEs loan assistance program last May 18.
According to Vice Mayor Jeremy Jesus Bueno, the Santa RISEs aims to help the MSMEs bounce back and build back better their enterprises and livelihoods and revitalize the local economy.
Beneficiaries of this loan assistance program are bona fide residents of Santa who are engaged in micro, small or medium type of commercial businesses.
They should also be a member of the NSCC Multi-Purpose Cooperative and NSCC Mutual Benefit Association, Inc. (MBAI) and must have submitted documentary requirements such as valid IDs, latest 2x2 pictures, endorsement from the mayor and barangay clearance.
To ensure the feasibility and continuity of the project, NSCC shall charge individual borrowers with an interest rate of four percent. The three percent will go to NSCC as support to the operation of the program and one percent will go to LGU-Santa to be utilized for trainings and various development activities.
A service fee of one percent will also be collected by NSCC upon loan availment.
To avail different benefits of the program, NSCC shall enroll individual beneficiaries to the NSCC MBAI membership which shall provide micro insurance benefit to the borrowers and their qualified beneficiaries like the Basic Life Insurance Plan and the Credit Life Insurance Plan.
One percent per availment will go to the savings mobilization which shall provide the opportunity for MSMEs to save their earnings for future expenditures and they can give savings deposit monthly.
The loan amount to be disbursed shall be based on the actual needs of the applying MSMEs but it should not exceed Php 100,000.00.
Beneficiaries are to be evaluated and background checked by the NSCC based on established criteria and requirements.
The loan amount in succeeding cycles shall be based on the repayment performance, availability of fund and on the status of the industry.
The term of loan shall be 10 months with two months' grace period or on the 11thand 12thmonth.
The beneficiary shall pay on a lump sum mode of payment and may give monthly savings deposit.
If the loan amount is not yet paid within the given grace period, an interest charge and penalty shall be applied.
NSCC shall take full responsibility in collecting payments of loan acquired by beneficiaries.
Meanwhile, during the Laging Handa Network Briefing episode on Friday, Secretary Ramon Lopez of the Department of Trade and Industry (DTI) said his agency has microfinance programs for small to medium enterprises affected by the pandemic.
"Our micro and small entrepreneurs can borrow from Php10,000.00 to Php200,000.00 for micro; and Php10,000.00 to Php500,000.00 for small-sized enterprises, which can be paid up to two years, with a six-month grace period before principal payment starts and interest rate is six percent per year or 0.5 percent per month," he said.
Secretary Lopez said, "Ito po ay pwede nang mag-apply sa Small Business Corporation, i-Google lang online para hindi na kailangang pumunta sa mga opisina ng SB Corporation."
He added that they have the Negosyo Serbisyo sa Barangay where DTI gives livelihood kits and packages for those who are just starting out their business.
The Laging Handa Network Briefing airs daily from 9:00 a.m. to 10:00 a.m. at the Radyo Pilipinas hosted by Presidential Communications Operations Office Secretary Martin Andanar.
The program can be viewed at PIA's regional and provincial Facebook pages around the country. (JCR/AMB/PIA Ilocos Sur)