Moratorium on Loan Payments of Small Business Corporation Borrowers under Community Quarantine

The Pondo sa Pagbabago at Pag-Asenso (P3) is a financing program established by Small Business Corporation for micro enterprises with an asset not exceeding Three Million Pesos (PhP 3,000,000.00) at not more than 2.5 percent per month all-in interest rate and service charges. One of the social amelioration programs (see List of Social Amelioration Programs) is the moratorium on loan payments of Small Business Corporation borrowers. This is contained in Joint Memorandum Circular No. 1, issued pursuant to the Bayanihan to Heal as One Act (Republic Act No. 11469) and its Implementing Directives, designed to mitigate the socio-economic impact of the Coronavirus Disease 2019 (COVID-19) health crisis during the Enhanced Community Quarantine.

Payment moratorium under the Regular and P3 loan programs of the Small Business Corporation shall be granted to affected borrowers situated in areas declared under community quarantine or partial lockdown, with the following conditions: 

  • a) A request is submitted by affected borrowers thru email or SMS; 
  • b) Affected borrowers shall be allowed to pay only their interest due for the succeeding six months. Interest rate will continue to accrue during the moratorium. The term of their loan shall be extended based on the number of months covered by the moratorium. 

The above conditions shall be subject to the re-evaluation of the management of the Small Business Corporation prior to the end of the moratorium. 

[See also: Social Amelioration Programs for the Community Quarantine by Reason of COVID-19; Emergency Subsidy Program (ESP) during the Community Quarantine); Target Beneficiaries of the Government Social Amelioration Program for COVID-19; Documentary Requirements to Avail of Government Social Amelioration Programs for COVID-19]

P&L Law

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