Financial Support

Loans for businesses 

There are a variety of government-backed loans and grants available for businesses needing financial assistance. It should be noted that these loans are not operated by BOI, however they are available to BOI registered businesses. They include:  

  • Interim Rehabilitation Support To Cushion Unfavourably-affected Enterprises by Covid-19 (I-RESCUE). I-RESCUE is a large-scale program of support for SMEs affected by the economic impact of Covid-19. It includes the provision of additional funds as well as loan restructuring on more flexible terms. This scheme is run by LANDBANK.  
  • Pagbabago at Pag-asenso (P3). Pagbabago at Pag-asenso is a financing program established for micro-corporations with assets not exceeding three million pesos. This scheme is run by the SB Corporation and the Department for Trade and Industry (DTI). 
  • Micro, Small, Medium Enterprise (MSME) Credit Guarantee Program. A working capital loan program to support small and micro-businesses affected by COVID-19 pandemic. You can borrow from financial institutions (bank and non-bank) regulated by the Bangko Sentral ng Pilipinas (BSP). This scheme is run by the Philippine Guarantee Corporation (PhilGuarantee).
  • COVID-19 Assistance to Restart Enterprises (CARES). A loan assistance program for small and medium-sized enterprises (SMEs). Businesses with assets not exceeding three million pesos can borrow between one hundred to two hundred thousand pesos. Visit to apply online. This scheme is run by Small Business Corporation (SBC) and the Department of Trade and Industry (DTI).
  • Rehabilitation Support Program on Severe Events (RESPONSE). Financing support to both public and private institutions affected by the COVID-19 pandemic. Borrowers can loan up to 95% of the amount needed based on the project requirement or minimum cash requirement to help them recover. This scheme is run by Development Bank of the Philippines (DBP).
  • Rice Farmer Financial Assistance (RFFA).  A one time assistance offer of up to five thousand pesos for rice farmers with farm sizes of 1 hectare and below. You need to be registered with the Registry System for Basic Sectors in Agriculture (RSBSA) to be eligible. This scheme is run by the Department for Agriculture. 
  • Survival and Recovery Loan (SURE) for small farmers and fishers. A zero percent interest rate loan amounting to twenty five thousand pesos to be given to eligible borrowers affected by Enhanced Community Quarantine. This scheme is run by the ACPC.

Help with rents

Special measures have been put in place to help businesses afford their rent while operating within communities that have been quarantined. 

These policies are not operated or enforced by BOI but they are open to BOI registered businesses. 

With regards to residential and commercial rents due to be collected within the duration of a community quarantine period (ECQ, MECQ, GCQ), a ‘grace period’ shall be applied. 

This grace period is 30 days from the due date of the rent or until such time as the quarantine has been lifted, whichever is longer. Within this grace period, commercial and residential rents do not have to be paid. No interests, penalties, fees or other charges shall be incurred as a result, and no eviction may take place within the grace period. 

These rules shall be applied where a business with a commercial or residential lease has demonstrably lost income because of a localised quarantine. 

Rent payments not made within this grace period need to be repaid within six months of quarantine ending.  

Any violations of this policy can be reported and brought before the DTI Fair Trade and Enforcement Bureau (FTEB). 

To learn more about these provisions and how to take advantage of them, get in touch. You can talk to a dedicated BOI Investments Specialist today by booking an appointment with us.

Help with loan payments 

Assistance is available for businesses operating within quarantined zones who are struggling to repay loans as a result.

Philippine law directs that all banks, quasi-banks, financing and companies – both public and private – must implement a 30 day grace period for the payment of all loans from local businesses affected by community quarantines. 

This applies to all kinds of loans, including but not limited to salary, personal, housing and motor vehicle loans, as well as well as credit card loans. No interest, fees or payments shall be incurred by the debtor as a result. 

To learn more about these provisions and how to take advantage of them, get in touch. You can talk to a dedicated BOI Investments Specialist today by booking an appointment with us.

Extension on payment of local taxes and fees

The Department of Finance (DOF) has extended the deadline of payment of local taxes, fees and other charges collected by the local government units (LGUs) for individuals and businesses affected by Covid-19. This was made possible through the Bayanihan Act 2.

The deadline of payment is on 19 December 2020 including taxes imposed in real estate properties and items that were publicly auctioned. If your LGU has announced a deadline earlier than the date set by DFA will be changed automatically for strict compliance.

We advise you to coordinate with your LGU for more information or book an appointment with one of our specialists today via our Facebook page for assistance.

Future support for businesses – CREATE Bill

We are currently working with Congress on the passage of the CREATE Bill – a new package of support for businesses in the Philippines. 

Under this law, all businesses will only need to settle 25 percent of their net taxable income, a reduction from the current 30 percent rate.

The sunset provision for those who are currently enjoying GIE (Gross Income Earned) will also be extended to nine years for export, footloose industries, and those employing 10,000 workers. These industries will continue to only pay five percent GIE.

The net operating loss carryover (NOLCO) application will also longer, at five years.

For highly strategic projects (e.g. high employment generation or employing distinctly innovative technology), the Philippines now matches other countries offering flexible negotiated incentive packages as CREATE empowers the President to offer tailor-fitted incentives beyond the regular menu provided under the proposed bill.

Future support for businesses – PESA

We are also pushing for the passage of the proposed Philippine Economic Stimulus Act (PESA), which aims to provide immediate assistance to workers and businesses and help the economy recover from the impact of the COVID-19 pandemic.

By providing working capital assistance, technical and entrepreneurial education, and financial management, among others, we will be able to protect people by ensuring businesses will continue operating post-lockdown and help turn the tide for businesses and workers affected by the health crisis.

Under the PESA bill, the government will earmark over one trillion pesos as a post-pandemic stimulus package, which includes a budget of Php650 billion for an expanded infrastructure program on health care, education, and food security. 

The proposed law will also allocate:

  • Php300 billion for the National Emergency and Investment Corp., which seeks to “minimize the damage” brought by COVID-19 to the economy;
  • Php200 billion for wage subsidies and the grant of interest-free loans to assist micro, small and medium enterprises (MSMEs), including businesses labeled “non-essential” during the lockdown;
  • Php128 billion for the Credit Mediation and Restructuring Guarantee Fund, an expanded loan program that will cover all “critically-impacted businesses” nationwide, among others.

The bill aims to restore business confidence and operations, as well as preventing business closure prior to the imposition of the lockdowns and quarantine. As we work towards the gradual lifting of the quarantine, more businesses will be able to operate, but at lower capacities due to limited capital resources that dwindled during the quarantine period. There are also strict health measures that are being imposed and the firms would need working capital loans.

The PESA bill also proposes to give assistance to the manufacturing sector to meet the needs of the domestic markets and export commitments. The bill also supports the service export industries which include Business Process Outsourcing companies that outsource architectural and engineering services, software designers, freelancers and self-employed who all export their services abroad.

We have also requested the inclusion of the construction industry in the stimulus package and lessen emphasis on the importation of products to provide more jobs to local workers.

Future support for businesses – Investment Priorities Plan (IPP)

We have proposed adding two more priority activities – for manufacturers whose business activities are related to fighting against COVID-19 and businesses and projects aligned with the Balik Probinsya Program—in the proposed 2020 Investments Priorities Plan (IPP). 

The IPP, a list of preferred business and investment activities that may be given investment incentives in the form of tax holidays and duty-free importation of capital equipment, is now with President Rodrigo Duterte for his consideration and approval.

You can talk to a dedicated BOI Investments Specialist today by booking an appointment with us.