Article: DBP, DTI Ease m+SME Access to Funds -
30 May 2007
DBP has teamed up with the Department of Trade and Industry (DTI) to facilitate access of micro, small and medium-sized enterprises (mSMEs) to loanable funds under the One Town One Product (OTOP) program. The partnership is seen to contribute in encouraging the growth of entrepreneurs particularly in the countryside.
Under an agreement signed recently, DBP will evaluate loan applications endorsed by DTI through the OTOP Program, and recommend the same for direct lending or endorsement to accredited/conduit participating financial institutions/ microfinance institutions for wholesale lending. Loan applications will be evaluated in line with standard credit policies and procedures for mSMEs.
Loans that do not qualify for financing by DBP or the conduit participating financial institutions will be endorsed to the DBP Business Assistance Centers (BACs) for referral to other lenders in their respective areas. The BACs will also be tapped to support the trade department through the OTOP program, and allow them (BACs) to acquire SME assistance capabilities through hands-on training in the areas of project identification, business diagnosis, market matching, and preparation of financial statements, among others.
DBP will also help DTI-endorsed OTOP proponents in complying with all applicable loan requirements such as filling up the Confidential Information Sheet (CIS) and the customer’s information report.
The Bank will also provide loan assistance to local government units supporting the OTOP projects such as common service facility, road networks, and infrastructure to financing training center.
Meanwhile, DTI will provide technical assistance and business counseling services to OTOP entrepreneurs that may include training, marketing, product development, technology, and other skills. The trade department will also endorse OTOP NGOs/individual micro, small and medium entrepreneurs to DBP for possible funding assistance based on pre-determined risk acceptance criteria.
OTOP is a priority program of President Gloria Macapagal-Arroyo to promote entrepreneurship and create jobs. Through OTOP, local chief executives of each city and municipality take the lead in identifying, developing and promoting a specific product or service, which has a competitive advantage.
President David and DTI Undersecretary Carissa Cruz-Evangelista shake hands after the MOA signing. Also in photo are SEVP Edgardo Garcia and SME department head SVP Corazon Conde.
Posted By: Development Bank of the Philippines
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