The city government is institutionalizing interest-free financing for small businesses through the Credit Access for Resilient Enterprises (CARE) Program, following the passage of an ordinance by the Sangguniang Panlungsod (city council) on Wednesday.
The program provides a PHP3 million fund for qualified nano entrepreneurs, with loans ranging from PHP5,000 to PHP100,000, payable within six to 18 months, depending on the approved amount.
Borrowers will not be charged interest but will pay a one-time service fee equivalent to 1.5 percent of the approved loan amount, unless otherwise provided in the program’s implementing rules and regulations.
Councilor Rudolph Jeffrey Ganzon, author of the ordinance, said the initiative aims to strengthen small businesses, promote inclusive economic growth, and provide entrepreneurs with access to affordable financing.
“The program seeks to ease the financial burden faced by many nano entrepreneurs who often have no choice but to rely on informal lenders charging onerous rates,” Ganzon said during his presentation before the council.
He said the initiative would provide entrepreneurs with an alternative source of financing to help them invest in their businesses, increase their income, and improve their quality of life.
Under the ordinance, nano enterprises are businesses operating within Iloilo City’s territorial jurisdiction with total assets not exceeding PHP250,000, excluding the value of the land on which their business premises are situated.
These businesses typically employ no more than three workers, including the owner or proprietor.
Ganzon said the program would also provide beneficiaries with the knowledge, skills, and support needed to sustain and expand their businesses.
The CARE Program will be supervised by the Local Economic Development and Investment Promotion Office or another office designated by the city mayor. (PNA)