Government micro lending arm Small Business Corporation (SB Corp) has expanded its interest-free and collateral free loan facility to the truckers industry to help the logistics sector recover from the debilitating impact of the pandemic.

The project was sealed with the signing of a Memorandum of Agreement between the SBCorp. and the Alliance of Concerned Truck Owners and Organizations (ACTOO) on Bayanihan COVID-19 Assistance to Restart Enterprises (CARES) for Truckers. ACTOO has an estimated 2,000 micro, small and medium member truckers.

SBCorp. private sector representative Santiago Lim said the loan facility has zero interest and no collateral for qualified ACTOO members.

Lim explained that SBCorp will use the remaining P300 million out of the P4 billion allocation for non-tourism MSMEs. But this amount will be augmented with P1.5 billion unused funds from the P6 billion allocation for tourism MSMEs.

He said that SBCorp ha already signed an agreement with the Department of Tourism to allow SBCorp to lend the P1.5 billion to truckers as take up of tourism loans has been slow. In addition, he said, truckers also form part of the tourism sector.

He urged ACTOO members to hurry their application because their non-tourism loan facility has higher take up as they are now releasing an average of P500 million a month to borrowers in the past four months. At that rate, the P1.5 billion would be just good for three months.

Aside from zero interest and no collateral features of the loan, Lim said the CARES Program grants 6 months to one year grace period and payment period of three years or a total repayment period of 4 years.

Micro enterprises with asset base of P3 million and below will be allowed to loan up to P300,000 while the small category with asset size of P3 million above to P15 million can borrow up to P1 million while those with asset base of above P15 million to P100 million can be granted up to P5 million in loanable amount.

Service fee is graduated from 4 to 8 percent depending on the terms and grace period of the loan applied for.

SBCorp. Senior Vice-President Josefina Flores said this will be on a “first come first serve” basis.

Borrowers will just have to present documentary requirements including member certification of good standing from ACTOO. The ORCR (car registration and official receipt) of trucks must also be under the name of the borrower. Application can be filed online through

Source: Manila Bulletin (