MANILA -- State-run Land Bank of the Philippines said Friday it opened a P10-billion loan facility to help small businesses, cooperatives and micro lenders cope with the COVID-19 pandemic.
Borrowers can take out up to 85 percent of their working capital, payable in 5 years and with the option to fix interest at 5 percent for 2 years. A grace period of 2 years on the principal amount is also available, said Landbank President Cecilia Borromeo.
"Alam namin ang hinaharap na problema ngayon ng ating mga negosyo, SMEs and cooperatives, pati na din microfinance institutions," Borromeo told DZMM.
(We understand what our businessmen, SMEs, cooperatives and microfinance institutions are going through.)
The I-Rescue lending program will prioritize micro, small and medium businesses, cooperatives and micro lenders in the agribusiness supply chain, she said.
The same terms for businessmen apply to lenders as long as they cap interest on loans at 12 percent, she said.