The Department of Trade and Industry (DTI) is seeking an additional P5 billion for the Small Business Corp. (SB Corp.) next year as surging demand for financing pushes the government lender to expand its support for micro, small and medium enterprises (MSMEs).
Trade Secretary Cristina Roque said the proposed funding increase would allow SB Corp. to accommodate more entrepreneurs seeking capital for business expansion, working capital, exports and other growth initiatives.
“We’re trying to add another P5 billion. We’re still waiting for the approval. The total budget this year is around P12.9 billion,” Roque said on the sidelines of the National Exporters Fair on July 22.
The request comes as SB Corp. faces a sharp increase in loan applications, prompting the agency to upgrade its systems to handle the growing volume and speed up financing access for small businesses.
“We’re really upgrading the system because we did not expect such a huge surge in applications. There are so many applicants, but we’re assisting them as best as we can, as long as the requirements are complete,” Roque said.
The proposed additional funding reflects the growing role of government-backed financing in helping MSMEs overcome one of their biggest challenges: access to affordable credit.
Small businesses remain a key driver of the Philippine economy, accounting for a large share of enterprises and employment. However, many continue to face difficulties securing financing from traditional lenders due to limited collateral, credit history and operational scale.
SB Corp.’s growing loan portfolio highlights the strong appetite for support. As of June 2026, the agency had approved 94,532 loan applications worth P32.452 billion.
DTI said the additional allocation would help strengthen programs that provide funding for enterprise expansion, export development and business recovery, while enabling more entrepreneurs to invest in equipment, inventory and new market opportunities.
If approved, the P5 billion boost would give SB Corp. more firepower to meet rising MSME demand and reinforce the government’s push to build a stronger small business sector capable of creating jobs and driving economic growth.
