PRESIDENT Ferdinand Marcos Jr. has approved a P4-billion emergency loan program to support micro, small and medium enterprises (MSMEs) affected by the war in the Middle East, Executive Secretary Ralph Recto said Friday.
In a statement, Recto said the initiative was part of a comprehensive aid package to help cushion the impact of rising logistics costs, cash flow constraint and supply chain disruptions on businesses.
“As part of the safety nets not only for the highly vulnerable sectors but for the middle class and small entrepreneurs as well, President Marcos has cleared a program for MSMEs in distress as a result of the global oil shock to avail of easy loans ranging from P30,000 to P20 million each for them to manage rising logistics costs, cash flow constraints and supply chain disruptions,” he said.
“The president has envisioned this loan program as a lifeline to MSMEs against the backdrop of limited access to financing, more so at this time of economic challenges sweeping the globe,” Recto added.
The program will be implemented through the Department of Trade and Industry and its financing arm, Small Business (SB) Corp. The loans will carry low interest rates, are repayable over five years and include a one-year grace period before principal or interest payments begin.
Applications may be filed online and SB Corp.’s processing for complete submissions is expected to take seven to 10 days.
Recto said the new government loan program would also be a welcome development for MSMEs in light of a perennial credit squeeze in the country.
Citing latest Bangko Sentral ng Pilipinas data, he said that while bank lending to MSMEs rose five percent to P574.8 billion as of end-December 2025 from P546.22 billion a year earlier, it accounted for just 4.73 percent of the banking system’s P12.143-trillion total loan portfolio.
Meanwhile, Recto earlier directed transport authorities to work closely with local government units (LGUs) along with the Department of the Interior and Local Government (DILG) on the seamless implementation of a nationwide transport assistance package for public utility vehicle (PUV) operators, drivers and commuters to ease the impact of spiraling oil prices.
LGUs and the DILG are to team up with agencies like the Department of Transportation (DOTr), Land Transportation Franchising and Regulatory Board (LTFRB) and the Department of Energy (DOE) on ensuring the seamless implementation of Marcos’ twin directives on fuel subsidies for PUV operators and drivers via a service contracting program (SCP) plus 20-percent fare discounts for the riding public.
In keeping with a whole-of-government approach, Recto said the DOTr and LTFRB needed to work closely with the DILG, LGUs and the LTFRB to make sure that all target beneficiaries are able to avail of the fuel subsidies under the SCP and that the recipients provide the 20-percent fare discount to all of their passengers.
Marcos on April 9 said that the government would be rolling out, beginning April 15, a nationwide transport aid package under which PUV operators and drivers would get a subsidy of P40 to P100 per kilometer to offset the operating losses they have had to absorb since local pump prices of diesel and gasoline more than doubled from the time the Middle East war started in end-February.
With the SCP-provided additional income, PUV operators and drivers should implement the 20-percent fare discount for the riding public, Recto said.
