Senator Joel Villanueva is calling on the government to also provide assistance to micro, small and medium enterprises (MSMEs), which he said are also suffering from the effectis of the coronavirus pandemic.
In a statement, Villanueva expressed concern on the ability of the sector to keep their workers employee during the pandemic.
“Just as we immediately implemented emergency employment programs for our affected workers both in the formal and informal economy, we should likewise act with dispatch to provide relief to MSMEs,” the veteran legislator said.
“The assistance that we will provide to them should be conditional on them keeping their workers now and until the economy recovers.”
“We must throw them a lifeline immediately, so they in turn can sustain their workers too. The assistance that we will provide to them should be conditional on them keeping their workers now and until the economy recovers,” explained the chair of the Senate Committee on Labor, Employment, and Human Resource Development.
“Matinding hamon ang hinaharap ng ating mga MSME. Kabuhayan ng milyung-milyong manggagawa ang nakataya kung hindi agad makakarating ang tulong ng pamahalaan sa mga MSME,” the seasoned lawmaker added.
MSMEs employed some 5.7 million workers
MSMEs employed some 5.7 million workers in 2018, according to data from the Department of Trade and Industry (DTI), representing about 13 percent of the total number of employed workers.
Industries severely affected by the community quarantine enforced in Luzon and other local governments are in the wholesale and retail trade, and food and accommodation sectors which comprise at least 50 percent of the employment generated by MSMEs, data from the Philippine Statistics Authority showed.
The Bayanihan Law of 2020, which Congress passed recently, orders the DTI to provide relief for “productive sectors of the economy.”
The agency is preparing the implementation of its Pondo Sa Pagbabago at Pag-asenso (P3) Enterprise Rehabilitation Financing worth P1 billion, which is expected to roll out once the quarantine restrictions are lifted.
The DTI has issued a moratorium on the payment of loans of about 127,000 micro enterprises under the P3 program, as well as 15,000 MSME who have existing loans under the government-owned Small Business Corp.
Other government lending institutions have existing loan programs such as the Development Bank of the Philippines’ Small Business Puhunan Loan Program and Rehabilitation Support Program. Land Bank of the Philippines offers loans under its Calamity Rehabilitation Support Program.
MSMEs can also seek assistance from the Department of Science and Technology through its Small and Medium Enterprise Technology Upgrading Program.