Soft loans to small investors in Tugbok, Talomo residents eyed

Microfinancing or soft loans are being eyed for the calamity-stricken districts of Tugbok and Talomo, to allow small businesses and farmers in the areas to rebuild their lives and businesses after the flashflood that hit them last month.

“We are requesting government financial institutions to grant soft loans to small investors in the areas declared by the city council to be under a state of calamity,” councilor Rachel Zozobrado said.

Zozobrado has passed a resolution requesting government financial institutions such as the Philippine National Bank, Land Bank of the Philippines, the Development Bank of the Philippines, PAGCOR and providers of development assistance to grant soft loans not only to the small investors affected by the heavy rains and flashfloods last June 29, 2009 but also to marginal farmers and small entrepreneurs. The City Council also suggested the inclusion of Quedancor, GSIS and SSS to the list.

The City Council, which declared a state of calamity in the Districts of Talomo and Tugbok last July, also granted a total of P1,025,000 million to these areas.

She said the affected entrepreneurs and farmers are seeking immediate financial assistance from the government financial institutions to mitigate the impact of calamity to their businesses and to rehabilitate them as well.

“What they need are soft loans from government institutions and those that provide development assistant for small businesses to enable them to raise their income level and improve their living standards and to rehabilitate what was destroyed or lost by reason of the calamity,” she said.

Zozobrado said these small investors need to recover the capital they lost as a result of the calamity. By providing them soft loans, the loan providers will be able to help them start again, she added.