Micro Small and Medium Enterprises (MSMEs) in Compostela Valley province will now have a better chance that their loan applications in banks will be approved with the Medium and Small Scale Industries Coordinated Action Program (MASICAP) services available in the province.
MSMEs who wanted to expand or set up a start-up business needed additional capital thru loans from financial institutions. Loan applications with commercial banks usually require applicants to submit feasibility studies (FS) or business proposal before their loans are approved. This is to ensure that the money is intended for business and the borrower will also be able to pay back in the agreed terms and conditions.
Lacking of this requirement, however, are the usual reason that the loan applications are denied. This is because feasibility studies or proposal preparations require special skill and knowledge. The loan applicant will have to hire competent professionals to prepare the FS, usually for a considerable amount. For ordinary MSMEs, this is a costly and tedious process in order to avail a loan. In most cases, the MSME will no longer avail loans from the banks because of this requirement.
The MASICAP II program, a revival of the successful MASICAP I program, has been helping MSMEs in other provinces in Mindanao avail loans from banks and financial assistance form government agencies. MASICAP offers for free the preparation of FS and other required documents to qualified MSMEs for their loan applications.
Urged by members such as Land Bank of the Philippines, DOST, and DTI, the Provincial MSMED Council passed a resolution to have the MASICAP II in the province. The hiring of MASICAP scholars to serve the MSMEs in the province was made possible with the cost sharing of the Provincial Government of Compostela Valley and DTI Compostela Valley.
To avail the services of the MASICAP scholars, MSMEs will just have to visit to DTI Compostela Valley in Nabunturan for initial identification and assessment. DTI will then endorse the MSME to the MASICAP scholars to facilitate their documentary requirements for loan application. DOST, LBP and DOLE loan/financial assistance applicants can also avail the free service provided by the MASICAP scholars. (KIM EVANGELIO, DTI Comval)