NO: 004-

Department of Trade and Industry 12

Release Date: January 31, 2017
Reference: DTI Regional Office 12
228.9837(083)
r12 @dti.gov.ph / www.dti.gov.ph
@DTI.Region 12 @DTI. Region 12 @DTI.Region12

DTI and SBC launch Pondo sa Pagbabago at Pag-Asenso

(P3) in SOCCSKSARGEN

Usec. Zenaida C. Maglaya of DTI Regional Operations Group urged the first and second
batch of beneficiaries to ensure the projects success by paying their loans on time so the
money paid can still be reloaned by them and others who need funding assistance as well.

SOCCSKSARGEN - Alabel, Sarangani Province, on January 31, 2017, the Small

Business Corporation, an attached agency of the Department of Trade and
Industry (DTI) and the Regional Office of DTI 12 through the Office of the DTI
Sarangani have launched the Pondo sa Pagbabago at Pag-Asenso (P3) at the
Alabel Gymnasium, morning of the said date.

Undersecretary of the Department of Trade and Industry for Regional

Operations Group (DTI-ROG), Zenaida Cuison Maglaya and Mr. Brillo Reynes,
President /CEO of the SB Corporation graced the event as Guest Speakers.

Sarangani Governor Steve Chiongbian Solon, and some provincial officials as

well as regional DTI 12 officials, headed by Regional Director Ibrahim Guiamadel
and other national government agency officials as well as the media in the South
Cotabato Sarangani and General Santos City area were also present during the

Pondo sa Pag-Asenso Para sa Pagbabago (P3) to be launched in SOCCSKSARGEN

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 event. Alabel Mayor Vic Salarda, who is currently in Japan, was represented by
Municipal Administrator Gerson Demaala.

Pondo sa Pagbabago at Pag-asenso or P3, as explained by SB Corporation

President, Mr. Brillo N. Reynes, is a funding program to provide microenterprises
an alternative source of financing that is easy to access and made available at a
reasonable cost. This program gives a boost to the development of the MSME
sector, particularly the microenterprises that comprise about 90% of registered
enterprises in the country

Reynes explained that P3 Program Funding is in line with the Presidents

directive to provide affordable micro-financing program for MSMEs. The d2017
General Appropriations Act (GAA) included Php 1.0 Billion for financial assistance
subsidy to microenterprises under the P3 Program. Depending on the
performance of this initial funding, P3 may be scaled up and included in the GAA
for subsequent years.

Usec. Zenaida C. Maglaya explained in her keynote speech addressed to the

guests particularly to the microenterprises and entrepreneurs, the main
beneficiaries of the program, that as the primary beneficiaries of the program,
they no longer have to access credit at very high interest because P3 is already
here to provide assistance to their financing needs at a very affordable interest
rate. She identified market vendors, agribusiness men and members of
cooperatives,
Industry associations and cooperators as P3s target beneficiaries.

Addressing the crowd in Filipino, Maglaya also emphasized that,

Dapat nating isaisip na dahil ang pondong ito ay nanggagaling sa kaban ng ating
bayan, ito ay dapat nating bayaran sa tamang panahon, nang sa ganuon ito ay
muli nating mahihiram at maipapahiram pa sa iba pa nating mga kababayan na
nangangailangan rin tulad natin.

Later, during the launching program, DTI and SB Corporation

awarded loan certificates to twelve initial beneficiaries amounting to P285,000 and
another nine beneficiaries the following day with a total of P190,000.00. Most of
the loan beneficiaries are MSMEs whose stalls are located in the Alabel Public
Market.

The Small Business Corporation, an attached agency of the Department of

Trade and Industry (DTI) shall administer the P3 Program. Aside from creating a
Program Management Office to oversee the management and monitoring of the
P3 Fund, SB Corporation will make use of its lending network and the DTI
Negosyo Centers in reaching out to P3 beneficiaries. It shall manage the P3 Fund
through separate books (from SB Corporation proper) that will be subject to COA
audit.

The Small Business Corporation (SB Corp) will deploy the P3 Fund through two
modes of delivery. The more extensive distribution system will be under wholesale
lending where SB Corp will partner with conduits. These are selected micro-

Pondo sa Pag-Asenso Para sa Pagbabago (P3) to be launched in SOCCSKSARGEN

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 finance institutions, cooperatives, associations and other organizations. The other
delivery mode is the direct retail lending, this may include individual enterprise
borrowers, start-ups and other funding needs.

P3 Funds are still to be drawn from the Department of Budget and

Management (DBM). In the meantime, SB Corp will already be working out the
operating mechanics with some members of the Microfinance Council of the
Philippines Inc. (MCPI) and of the National Confederation of Cooperatives Inc.
(NATCCO).

Loan amounts to end-borrowers will be in the range of P5,000 to P100,000, at

a maximum interest rate of 2.5% per month, with no collateral requirement. The
rate compares well with the 10-20% per month charged by other fund providers.
Other delivery mode is direct retail lending, limited by SB Corps reach and
targeting more specialized borrower segments so that this is only a small fraction
of the P3 Funds. This may include individual enterprise borrowers, start-ups and
other funding needs that are not usually responded to by formal sources of funds.
P3 allocates P100 million for direct lending by SB Corp. Target loan beneficiaries
are the small enterprises in priority and emerging industries, start-up businesses
and technology innovators. Minimum loan amount will be P300,000 with interest
rate capped at 10% p.a., with or without collateral cover. # DTI 12 RO/VTP

Pondo sa Pag-Asenso Para sa Pagbabago (P3) to be launched in SOCCSKSARGEN

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