DTI Interventions to Assist MSMEs Affected by the Enhanced Community Quarantine

DTI published a list of its programs for MSMEs whose operations are affected by the enhanced community quarantine due to the Covid-19 pandemic. For more information, visit DTI's website at https://www.dti.gov.ph or send an email to bsmed@dti.gov.ph 

1. Small businesses get 30-day moratorium on rent payments

DTI Memorandum 20-12 states the guidelines on the concessions of residential and commercial rent for MSMEs:

A minimum of thirty (30)-days grace period shall be granted on residential and commercial rents falling due within the period of enhanced community quarantine (ECQ), without incurring interests, penalties, fees, and other charges. The minimum 30-day period is determined to be 30 calendar days following the last due date of the rent which fell due within the ECQ. Cumulative amount of rents falling due within the ECQ, shall be equally amortized in the six (6) months following the end of the ECQ, and shall be added to the rents due on those succeeding months, without interest, penalties, fees, and charges.

2. Ensuring unhampered movement of cargo and transit of personnel of essential businesses during the enhanced community quarantine.

Memorandum Circular 20-08 amending Memorandum Circular No. 20-06: Ensuring Unhampered Movement of Cargo and Transit of Personnel of Business Establishments Allowed to Operate During the Enhanced Community Quarantine of Luzon

Movement of all cargoes in the entire Luzon area

The movement of the cargoes of the following enterprises within, to and from entire Luzon shall be unhampered, or not be delayed upon presentation of the cargo manifest or delivery receipt indicating the destination, nature and quantity of the loaded goods to assigned inspectors:

• Manufacturing of Food and Essential Products, Medicine and Medical Supplies
• Retail Establishments (Groceries, Supermarkets, Hypermarkets, Convenience Stores, Pharmacies and Drug Stores)
• Logistics Service Providers (Cargo Handling, Warehousing, Trucking, Freight Forwarding and Shipping Line)
• Hospitals and Medical Clinics
• Food Preparations and Water Refilling Stations
• Delivery Services, whether in-house or outsourced, Transporting only Food, Water, Medicine or other Basic Necessities
• Banks and Capital Markets
• Power, Energy, Water, IT and Telecommunications Supplies and Facilities, Waste Disposal Services
• Export and Business Process Outsourcing (BPO) Companies

Movement of personnel needed to operate the covered enterprises

Employee working in the above enterprises and establishments shall be allowed to enter and exit control points upon presentation of any of the following:

• Valid Company Identification Card
• Proof of Residence
• Certificate of Employment

To further facilitate transit of personnel of covered enterprises and establishments, an IATF ID issued by the DTI shall be presented starting 22 March 2020 unless extended.

3. Small Business Corporation opens P1B loan facility for affected MSMEs.

The Small Business Corporation under the guidance of the Department of Trade and Industry has set up a P1.0 billion Enterprise Rehabilitation Financing facility under the Pondo sa Pagbabago at Pag-asenso (Covid19 P3-ERF) to support micro and small businesses affected by the economic impact of Covid19 in the country. Micro enterprises with asset size of not more than PhP3.0 million may borrow PhP10,000 up to PhP200,000 while small enterprises with asset size of not more than PhP10 million may borrow a higher loan amount but will not exceed PhP500,000 at an interest rate of 0.5%. The SB Corp. will be releasing the requirements and guidelines soon; all applications will be accepted after the Enhanced Community Quarantine is lifted.

Also included in the allotment is the ongoing assistance in finding new supply sources and non-traditional markets for industries affected by supply chain disruptions and the conduct of trade and investment missions to support the continued operation of industry.   

Loan Moratorium

In addition to the setting up of a PhP1 billion- Enterprise Rehabilitation Financing facility under the P3 (named as COVID19 P3-ERF), the SB Corporation is offering a one month moratorium on loan payments covering the period of March 16 to April 14, 2020 to its MSME borrowers and partner financial institutions (PFIs).

4. Livelihood Seeding Program

The allotted funding for the LSP-NSB amounts to PhP203 million, which will be used to provide a package of livelihood kits and business advisory assistance and services, amounting to at least PhP5,000 up to PhP8,000 to MSMEs affected by natural and human-induced calamities including health disasters.

The LSP-NSB Guidelines was revised to align and make it more responsive to the government directives on the COVID-19 situation. The coverage of the program was expanded to give priority assistance to MSMEs affected by health disasters arising from epidemics and pandemics.

5. Shared Services Facilities Project

SSF project aims to improve MSME competitiveness by providing them with machinery, equipment, tools, systems, accessories and other auxiliary items, skills and knowledge under a shared system. Specifically, this provision should help target beneficiaries increase their production capacities and improve product quality, resulting to increased markets, increased sales, and further contributing to jobs generation. It is a public-private partnership initiative being implemented through cooperators who can provide sustainable facilities to house the machinery and equipment and make these accessible to MSMEs.

The SSF Project, designed to address the technological and innovation needs of MSMEs in the country and in addressing community challenges as well has made a quick response to the health crisis caused by COVID-19.

21 SSF fablabs funded by the DTI along with privately-run fablabs collaborating with experts to produce personal protective equipment (PPEs). SSF FabLabs in particular are responding to the needs of the COVID-19 Outbreak in the country by producing face shields and aerosol boxes that can be made manually, or using digital fabrication machines such as 3D Printers, Laser Cutters, etc. Other SSF/FabLabs are into production of ethyl alcohol. Fabrication of items such as scrub suits, reusable masks and ventilators are being explored to address the gap.