STATE-owned Development Bank of the Philippines (DBP) has authorized P8.5 billion in funding support for the rehabilitation operations of both public and private institutions that have been negatively affected by the present public health crisis, according TO A TOP OFfiCIAL.

DBP President and Chief Executive Officer Emmanuel Herbosa said in a statement on Friday that the bank’s Rehabilitation Support Program on Severe Events (Response) and its subprogram DBP Response to Accelerate Micro-Small and Medium Enterprises (MSME) Recovery helped 90 businesses in the first half of the year.

“The DBP Response will continue to be the bank’s centerpiece program to encourage private businesses and public institutions to rebuild, rehabilitate, recover and to resume operations, thereby boosting the government’s national recovery program,” he said.

The program also assists DBP and non-DBP borrowers who have been affected by disasters and/or force majeure events such as typhoons, floods, droughts, pest and disease infestations, earthquakes, peace and order issues and other comparable events that have caused considerable socioeconomic harm.

Herbosa said 30 borrowers have been approved for new loans totaling nearly P4.8 billion under the DBP Response, majority of whom are based in Luzon, and work in the hospitality and food service industries, wholesale and retail trade, public administration and defense, manufacturing, financial and insurance activities, and other service activities.

Private institutions, such as businesses, corporations, cooperatives, associations, schools, hospitals, and financial institutions, as well as local governments and government corporations, such as water districts, state universities and colleges, are all served by the program, the DBP chief said.

“DBP Response offers a longer repayment period of up to 15 years, inclusive of a three-year grace period, for public borrowers and up to 10 years with a three-year grace period for private institutions,” he said.

Meanwhile, the DBP Response MSME Recovery subprogram provides low-interest loans with flexible terms to officially registered medium firms, such as startups, and cooperatives in agri-fishery and nonessential industries. Wholesale lending to rural banks, thrift banks, microfinance-oriented banks and nonbank financial institutions, such as cooperatives and microfinance organizations, for relending to MSME borrowers is also covered.

Herbosa added 60 borrowers have received funding assistance totaling P3.7 billion under the program, with 24 projects located in Mindanao, 21 in the Visayas, 15 in Luzon, and businesses involved in wholesale and retail trade, financial and insurance activities, agriculture, forestry, fishing, as well as the accommodation and food service industries.

He went on to say that while the country prepares for post-pandemic recovery, local enterprises, local governments, and other government organizations should take advantage of the chance to future-proof their operations and increase resiliency.

“DBP is poised to provide strategic assistance to our development partners in the business community, and to fellow government institutions as they improve current systems and boost continuity programs to mitigate the impact of future crisis situations,” Herbosa added.