(Photo courtesy of PNA)
ILOILO CITY – The Iloilo City government has moved to provide permanent access to interest-free loans for small-scale entrepreneurs following the approval of an ordinance institutionalizing the Credit Access for Resilient Enterprises (CARE) Program.
The Sangguniang Panlungsod approved the measure Wednesday, establishing a Php 3 million financing fund to help qualified nano enterprises expand their operations and reduce their dependence on high-interest informal lenders.
Under the program, eligible entrepreneurs may borrow between Php 5,000 and Php 100,000, with repayment periods ranging from six to 18 months, depending on the approved loan amount.
Although the loans carry no interest, borrowers will be required to pay a one-time service fee equivalent to 1.5 percent of the approved amount, unless otherwise specified in the program’s implementing rules and regulations.
Councilor Rudolph Jeffrey Ganzon, who authored the ordinance, said the initiative seeks to improve access to affordable financing while supporting business development and inclusive economic growth.
“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 the council deliberations.
He explained that the financing assistance would give small business owners an alternative source of capital to improve their operations, increase earnings and strengthen their livelihoods.
The ordinance defines nano enterprises as businesses operating within Iloilo City with total assets not exceeding Php 250,000, excluding the value of the land where their establishments are located.
These enterprises generally employ no more than three workers, including the owner or proprietor.
Aside from providing financial assistance, the CARE Program aims to equip beneficiaries with the knowledge, skills and support necessary to sustain and expand their businesses.
Ganzon said the initiative is intended to help entrepreneurs become more financially resilient while creating opportunities for economic participation at the community level.
Implementation and supervision of the program will be handled by the Local Economic Development and Investment Promotion Office or another office designated by the city mayor.
The ordinance establishes a continuing financing mechanism for nano enterprises, making affordable credit assistance part of the city’s local economic development initiatives.
