THE Department of Trade and Industry (DTI) and Philippine Veterans Bank (PVB) signed an agreement Monday to expand financing for small businesses and electric vehicles (EVs).
The partnership aims to improve access to financing for micro, small and medium enterprises (MSMEs) wanting to expand their operations.
It will also support the DTI’s E-Transport Loan Program by helping transport operators, cooperatives and other enterprises secure funding for the shift to EVs.
Trade Secretary Cristina Roque encouraged businesses seeking to replace internal combustion engine (ICE) vehicles with EVs to explore DTI’s financing programs.
She said transport and business operators needed more financing options to protect their livelihoods from rising global oil prices.
The DTI launched the E-Transport Loan Program through the Small Business Corp. (SB Corp.) to assist smaller transport operators. Qualified borrowers may receive a one-year grace period on principal and interest payments.
Roque, however, said the program required substantial funding. SB Corp.’s mandate also limits its lending programs to MSMEs.
She said partnerships with banks would allow the DTI to serve larger businesses, encourage more operators to adopt EVs, and keep borrowing costs as low as possible.
“Through Philippine Veterans Bank, we can explore financing for bigger companies and encourage their operators to shift from combustion-engine vehicles to electric vehicles,” Roque said.
She added that EVs could reduce operators’ fuel expenses while benefiting the environment.
The DTI and PVB are working to launch the loan program as soon as possible, Roque said.
Giselle Jordan
