Small enterprises may apply for loans to cover employees’ 13th month pay

Photo from Canva

By Inquirer.Net

Micro and small businesses could start applying next week for loans to help with their employees’ mandatory 13th month pay, a top official of a state-owned firm said, but only up to 7,000 establishments—just a fraction of nearly a million registered enterprises—could be accommodated.

Bobby Bastillo, Small Business (SB) Corp. vice president for innovations and advocacy, said at a Laging Handa briefing on Thursday that the government financial institution has allotted P500 million for the program, higher than the P200 million fund earlier announced by Trade Secretary Ramon Lopez.

There is, however, a caveat.

Only businesses that have notified the Department of Labor and Employment (Dole) from March 2020 to October 2021 about their flexible working arrangements will be eligible to apply for the loan.

Bastillo said the Dole had listed 11,000 enterprises, but the fund would only be enough for 6,000 to 7,000.

READ full story HERE.