The government will set aside up to P28bn in loans for small- and medium-sized enterprises (SMEs) this year, P5bn more than the targeted lending last year.
The loan package will be routed through the SME Unified Lending for National Growth (Sulong) programme. Sulong is a unified effort by all government financial institutions (GFIs), which developed a simplified set of rules in providing credit access to SMEs in the country.
GFIs involved in the programme include the Land Bank of the Philippines, the Development Bank of the Philippines, the Philippine Export and Import Credit and Guarantee Agency (PhilEXIM) and Quedancor.
By the end of November 2004, the Sulong programme was able to extend almost P24bn in loans to SMEs, resulting in more than 530,000 jobs. The majority of the SMEs that availed of Sulong funding were in the manufacturing, domestic and export trading, and services.
