DBP offers loans to COVID affected businesses, LGUs

State-owned Development Bank of the Philippines (DBP) is prepared to provide financing support to businesses and local government units (LGUs) which are affected by the Enhanced Community Quarantine to stem the spread of Coronavirus Disease 2019 (COVID-19).

DBP President and Chief Executive Officer Emmanuel G. Herbosa said the bank’s Rehabilitation Support Program on Severe Events (DBP RESPONSE) can extend financial aid for both public and private institutions, which may be adversely affected by calamities, such as the current health crisis.

“DBP is ready to provide funding assistance to businesses and LGUs as they gradually recover from the ill-effects of the COVID-19 threat,” Herbosa said.

President Duterte issued Proclamation No. 929, placing the entire country under a State of Calamity on March 16 in the wake of the rising number of COVID-19 cases. As of March 26, there were 707 cases reported across the archipelago.

DBP is the eighth largest bank in the country in terms of assets, and it provides credit support to four strategic sectors of the economy: infrastructure and logistics; micro, small and medium enterprises; social services and community development; and the environment.

Herbosa said under DBP RESPONSE, private institutions including enterprises, corporations, cooperatives, associations, schools, hospitals and financial institutions are eligible borrowers of the program.

He said LGUs, government corporations such as water districts, as well as state universities and colleges are likewise eligible to avail of the program.

“The program provides a longer repayment period of up to 15 years inclusive of a three-year grace period and concessional rates to help borrowers recover from the effects of any calamity,” Herbosa said.

Prospective borrowers should propose an eligible project that has developmental impact to the affected communities that they serve.

Interested applicants may coordinate with any DBP Lending Center near their area to get further details on the mechanics of the loan program, or access the DBP website at www.dbp.ph.

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