The Development Bank of the Philippines (DBP) is to introduce an enhanced lending programme that aims to make it easier for the country's micro- and small enterprises to arrange letter of credit (L/C) financing.

The programme features simplified documentary and collateral requirements intended to substantially reduce credit processing time to 12 working days once completed documents are submitted.

Loan options

Under the programme, loans can be used for L/C financing, production, working capital, plant expansion, equipment acquisition and purchase order financing.

Loans can be obtained for up to 90% of project costs.

Eligible firms

The enhanced lending programme is aimed at start-up or existing micro and small enterprises in several sectors, including agricultural production, tourism and food processing as well as wholesale and retail businesses.

The DBP is also planning a venture capital programme in which the bank would invest directly into the equity in smaller firms.

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