Solon calls for low-interest loans from SMEs hit hard by pandemic – Manila bulletin
Representative Lucy Torres-Gomez (4th district, Leyte) on Monday urged the national government to provide low-interest loans to owners of small and medium-sized businesses to use as working capital so they can develop or expand their businesses. investments.
Torres-Gomez said it would help them withstand the economic instability caused by the COVID-19 pandemic, as the country’s economy remains weak due to the hard impact of lockdowns on livelihoods and employment.
“The executive, at the initiative of lawmakers, can provide loans to these SMEs to help them stay afloat in these difficult times,” Torres-Gomez said in a statement.
“This can be included in the (proposed) 2022 national budget, which budget makers are still finalizing,” she said.
The lawmaker lamented that small businesses do not have access to the resources that most established businesses have. While they are vital to the country’s economy, many of them struggle to find capital.
âAn SME loan is a credit facility that can be extremely useful for SMEs to realize their full potential with the right financing. An SME loan would allow small business owners to increase their inventory even when cash flow is delayed, âshe said.
She said the government cannot afford to lose sight of SMEs and should look for ways to help them.
She further explained that small business loans are more convenient because they usually have low documentation requirements, are unsecured, have low interest rates, are affordable, and offer a flexible repayment schedule.
âOur government leaders cannot lose sight of newbies in business. There should always be ways to meet everyone’s needs, âshe said.
“Like low-income families who seek government support to survive the ruthless effects of this national health emergency, investors in small and medium-sized businesses also want the support of their leaders to endure the economic blows of COVID-19,” said underlined the solon.
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