The Philippine National Bank (PNB) has signed a landmark loan facility agreement with Discovery Capital Finance Corp. (DCFC) to strengthen financial support for Small and Medium Enterprises (SMEs) across the country. The partnership aims to help local businesses access the capital they need to grow, create jobs, and drive economic activity in communities outside major cities.
The agreement combines PNB’s financial strength with DCFC’s specialized lending expertise, providing SMEs—many of which struggle to secure loans due to limited collateral or credit history—with more flexible and accessible financing options.
“Partnering with institutions like PNB allows us to extend crucial funding to underserved businesses, helping regional economies thrive,” said DCFC president Diosdado Chua Salang, Jr.
Under the facility, DCFC will use additional funding to offer working capital loans, enabling SMEs to manage cash flow, purchase equipment, fulfill large contracts, and expand operations. The collaboration is expected to increase production, create employment, and support local tax revenues.
SMEs make up over 99 percent of registered businesses in the Philippines but often receive only a small portion of formal bank lending. Initiatives like this PNB-DCFC loan facility aim to address that funding gap, improve financial inclusion, and lower borrowing costs for small business owners.
The partnership reflects a broader trend of major banks joining forces with non-bank financial institutions to reach underserved markets and provide more efficient financing solutions.
