LGU loans and other small business loans

By Lee-Anne Tobias

November 7, 2020

If you’re looking for other ways to get government aid or loans that your small business can qualify for and your business happens to be registered in the city of Pasig, one of the best options you can take is the Tulong at Pampuhunang Ayuda sa Taga-Pasig (Tapat) program of its mayor, Vico Sotto. It is one of the city’s economic rehabilitation programs to help those left unemployed by and help businesses recover from the coronavirus disease (Covid-19) pandemic. According to the Philippine News Agency, P200 million are allocated for 20,000 to 40,000 Pasig residents under Tapat. As of September, the program has extended loans to 2,000 residents.

For small businesses, the salient features are the P10,000 interest-free business loan for micro, small and medium enterprises (MSMEs), and that applications are ongoing and the first batch of the grants released were given in September.

There are two programs that specifically cater to small businesses that both providing the same loan amount: Bagong Negosyo (New Business), which offers a loan for displaced workers who are interested in starting a small business; and Balik Negosyo (Back to Business), which is for small business owners who need financing for their current enterprise.

Business owners in Pasig can apply for a loan online by creating an account on their website. Pasig constituents can also apply offline by visiting the Tapat administration desk at the Career Center on the first floor of the Gender and Developmemt Complex at the Pasig City Hall. Assistance will be provided from 9 a.m. to 4 p.m., Monday to Friday. However, it’s still safer to apply online.

Other small business loans for non-Pasig-registered businesses

If you’re not quite sure what business loan to take to sustain your small business, there are over 15 types of loans that SMEs usually use on a regular and one-time basis. These include term loans, secured and unsecured loans, peer-to-peer loans, and online loans.

If your purpose for taking out a loan is to keep your business running by financing your operational costs, such as overhead, delivery, and freight expenses, then we would recommend you taking one out. Working capital loans would be short-term loans that give you a quick fix without drying your long-term finances.

The reason we recommend this is that it’s generally easier and faster to get approval for short-term working capital loans than long-term ones. Since business owners who take out short-term loans are required to repay in six months, they are also forced to budget their cash flow better, instead of unwittingly spending too much on interest and amortizing fees on long-term loans.

First Circle also offers the most competitive business loans: amortizing loans, which help you manage your cash flow better; purchase order financing, which allows you to take more orders; and invoice financing, which permits you to get paid in advance.
To learn more about these loans, visit https://www.firstcircle.ph/.

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Source: https://www.manilatimes.net/2020/11/07/business/columnists-business/lgu-loans-and-other-small-business-loans/792488/