ESSENTIAL STATEMENTS OF SMALL BUSINESS CORPORATION
Small Business Corporation delivers its message of commitment, service and integrity towards its mandate as defined under the Magna Carta for MSMEs by adopting the following statements that guide the entire organization:
By 2025, we will be the leader in building financing alternatives for Philippine MSMEs, putting them at the forefront of inclusive economic growth.
Our Mission is to relentlessly champion the neglected business segments of the country to get them to access the capital needed to grow successfully.
In the delivery of our mission, we commit not to contribute to the cycle of debt poverty and to ensure no pilferage in the use of NG investment. We also commit not to duplicate already existing interventions in the financing industry especially those mainstreamed among private industry players.
Social Outcome Objective
To cause prosperity among MSME segments traditionally considered unfinanceable, thereby increasing economic diversity and inclusion (we define unfinanceable segments as enterprises which despite their being an on- going business are not able to access finance at non-usurious rates).
7 Target MSME Segments
- Micro and small agri and aqua enterprises
- Micro retailers
- Small island economies
- MSMEs requiring rehabilitation arising from disaster
- Islamic MSMEs
- Indigenous people (IP) – owned enterprises
- First-time small businesses
Ferocity in the mission, Kindness towards each other.
Matapat sa Bayan (faithful and trustworthy service to the country)
Magaling at Maabilidad (competent and innovative)
Bayanihan (community in unity)
The new SBCorp logo stands for Bayanihan between the MSMEs, the Government and Small Business Corporation. It expresses a call for change, of transforming the MSME landscape from widespread numbers of unfinanceable business segments into a diverse community of small businesses that are able to access finance at non-usurious rates.
The color black represents Government and its authorities, power and strength in providing MSMEs with the level playing field they deserve. Green represents SBCorp and its mandate to fight for the neglected business segments of Philippine MSMEs by building effective financing alternatives. Orange represents the MSMEs – who are creative, hardworking and continuously aspiring to serve their family, their employees, their community and the country.
The Small Business Corporation
Small Business Corporation (SBCorp) is the result of the merger between the Small Business Guarantee and Finance Corporation (SBGFC) and the Guarantee Fund for SMEs (GFSME), under Executive Order No. 98 issued in November 2001. SB Corp’s focus is to provide access to finance, financial management and capacity building to MSMEs. It has several programs for the MSME market: wholesale lending to smaller financial institutions, cooperatives and foundations; retail or direct lending to micro, small and medium enterprises (MSMEs); and guarantee programs for larger banks to cover MSME loans without collateral or with insufficient collateral. SB Corp also provides financial management and capacity building for rural banks (RBs) with its (SB Corp) Borrower Risk Rating (BRR) System program.
Programs and Program Beneficiaries
Corporate Funded Programs
Using its own corporate funds, SBCorp is engaged in a) Regular Retail Lending for duly registered MSMEs and b) Venture Capital for selected start-up MSMEs. The two financing programs are consistent with the policy statement that SB Corp shall not duplicate existing financing interventions available in the market.
Program: Regular Retail Lending
Priority Beneficiaries: Targeted Micro and Small Enterprise Markets
Program: Venture Capital Program
Priority Beneficiaries: Selected Start-up MSMES thru Partner State Universities and Colleges
Program: Capacity Building Programs
Priority Beneficiaries: Targeted Financing Institutions
National Government- Supported Programs
Program: Enterprise Rehabilitation Financing
Priority Beneficiaries: MSMEs who suffered business reversal from calamity
The program was initially funded by corporate funds when it started in January 2014. SB Corp allotted around P 600 million in support of MSMEs badly affected by Typhoon Yolanda
In response the National Government (NG) granted P200 million credit risk subsidy to SB Corp.
Program: Pondo sa Pagbabago at Pag-asenso (P3)
Priority Beneficiaries: Microenterprises who are economically active
The National Government implemented its P3 Fund for microenterprises (MEs) starting 2017 via a GAA allocation for SB Corp.
The strategic objective is to provide all MEs that are economically active in all 81 provinces throughout the country, the opportunity to access credit at more reasonable interest rates capped at 2.5% per month.
Not more than 5% of the P3 fund was allocated to higher risk sectors such as internally displaced persons (IDPs) arising from war in Marawi, killed and wounded in action (KIA/WIA) soldiers or their families, MSMEs affected by the temporary closure of Boracay Island and MEs affected by earthquake in Batanes.
Ownership and Legal Status
SB Corp is a government corporation created on January 24, 1991 by virtue of Section 11 of RA No. 6977, amended on May 6, 1997 by RA 8289, otherwise known as the Magna Carta for Small and Medium Enterprises. SBGFC is under the policy program and administrative supervision of the Small and Medium Enterprise Development (SMED) Council of the Department of Trade and Industry (DTI), the primary agency responsible for small and medium enterprises in the country.