The government’s lending arm for small businesses is aiming higher this year as demand for credit among entrepreneurs continues to grow.
The Small Business Corp. (SBCorp) is targeting P12 billion in loan releases in 2026, up from P11.2 billion last year, according to president Roberto Bastillo. The figure could climb to as much as P15 billion if repayment collections remain strong and additional funds become available.
The lending push underscores the agency’s role as a key financing channel for micro, small, and medium enterprises (MSMEs), many of which struggle to access credit from traditional banks.
SBCorp offers several loan products designed for different stages of business development, including regular facility loans, multipurpose loans, and special lending programs. These facilities come with flexible repayment structures, including grace periods of three months to one year, allowing entrepreneurs time to stabilize operations before beginning regular payments.
Bastillo said borrowers who maintain good repayment records may also gain access to larger credit lines over time.
“For example, a borrower who starts with a P3-million multipurpose loan and maintains regular payments may have the loan facility increased to P5 million after several months,” he said.
The agency’s ability to recycle funds also supports the expansion target. As borrowers repay existing loans, the funds can be lent again to new applicants, effectively multiplying the reach of available capital.
Repayment trends vary across borrower segments. Micro enterprises, which make up the bulk of SBCorp clients, typically show slightly higher past-due rates. Larger borrowers such as exporters generally demonstrate stronger repayment performance.
Most microfinance borrowers operate in trading and services, mirroring the Philippines’ consumption-driven economy. However, SBCorp is encouraging more entrepreneurs in manufacturing and export-oriented sectors.
Women account for the majority of micro-loan borrowers, a trend that has accelerated following the rollout of SBCorp’s mobile lending app and partnerships with women’s organizations.
The agency has also streamlined loan processing, with approvals sometimes granted within hours during roadshows and special lending events when documentation is complete.
