The enactment of the TRAIN law had caused the prices of the basic commodities to increase. It does not only add difficulty to the consumers but also to the small businesses. In the same manner, the small businesses have been incurring losses as their profits are not enough to cover the expenses including payment for loans, mortgages, rents, monthly bills, and others.
To help the small businesses thrive, the DTI introduced the P3 program or the Pondo para sa Pagbabago at Pag-asenso loan program. The main objective of the P3 program is to help small business augment their capital by letting them borrow money from the government without any collateral.
The program will be a great help for small businesses so that they can at least have fund to sustain their expenses against profit. The good thing about this loan program is that the borrower can apply for loan with minimal documentary requirements.
The P3 program is the best solution or replacement for the “5-6” lending system offered by loan sharks taking advantage of the needy business owners. According to DTI USec Zenaida Maglaya, interested and qualified business owners can borrow money from Php5,000 to Php200,000 with an interest of 2.5% for every Php1,000. This means that the interest that the borrower should pay is Php25 per month.
DTI Small Business Loan Target beneficiaries of P3 program
The main target beneficiaries of the P3 program are those small businesses including the following:
- Market vendors
- Members of cooperative
- Industry association
- Entrepreneurs and microenterprises that don’t have easy access to credit
Basis requirements for DTI Small Business Loan
- Mayor’s permit
- Market clearance
- Business name registration
- Two valid IDs (government-issued)
How to Apply for DTI P3 loan program?
- Before going to the nearest Negosyo Center, make sure that your requirements are complete
- Ask for the P3 program application form
- Submit the duly accomplished application form along with other documentary requirements
- The Small Business Corporation will conduct an assessment on your application to know your repaying capability.
- If there’s no problem arises in your application, the fund will be released immediately
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In case there’s no Small Business Corporation branch in your area, you can submit your application from cooperatives or microfinance institutions accredited by DTI.