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| Photo sourced from SB Corp's Official Website |
General Santos City, Philippines—In a country where over 99% of registered businesses are MSMEs, many of which still operate informally and struggle to access formal financing, the Small Business Corporation (SB Corporation or SBCorp) plays a critical role. As the financing arm of the Department of Trade and Industry (DTI), SBCorp was created to empower these often-overlooked enterprises—those that may lack collateral, extensive credit history, or formal documentation, but demonstrably show clear potential to thrive.
Who is SB Corp?
SB Corp's mission is both simple and critical: to provide financing to viable but unbanked MSMEs, helping them grow, survive economic shocks, and contribute meaningfully to the local economy. Unlike most financial institutions that prioritize low-risk clients, SB Corp adopts a developmental finance approach. It ensures that no promising Filipino enterprise is left behind simply because they don't fit the mold of traditional bankable clients. With accessible loan programs, customized repayment terms, and a strong presence across the country, SBCorp partners with cooperatives, local governments, and business support organizations to reach entrepreneurs who often don't know where to start.
A Brief History of SB Corporation's Establishment:
SB Corporation was formally established on January 24, 1991, by virtue of Section 11 of Republic Act (RA) No. 6977, originally known as the Magna Carta for Small and Medium Enterprises. This foundational law mandated its creation to provide financing alternatives for the "unfinanceable segments" of Philippine MSMEs.
Over the years, its mandate and structure evolved:
- RA 6977 was amended by RA 8289 on May 6, 1997, and further by RA 9501 on May 23, 2008, which expanded its scope and is now known as the Magna Carta for Micro, Small and Medium Enterprises (MSMEs).
- A significant development occurred in November 2001 when the then-Small Business Guarantee and Finance Corporation (SBGFC) merged with the Guarantee Fund for SMEs (GFSME) under Executive Order No. 98. This merger solidified the National Government as its single biggest stockholder, creating a more effective organization geared towards meeting the financial needs of the SME market.
Today, SB Corporation operates under the policy program and administrative supervision of the Micro, Small and Medium Enterprise Development (MSMED) Council of the Department of Trade and Industry (DTI), continuing its mission to champion MSME growth.
Serving the Underserved
Whether it's a sari-sari store striving to scale up, a farm cooperative in need of post-harvest equipment, or a small manufacturer recovering from a disaster, SB Corp steps in when traditional banks may decline. "Our goal isn't just to lend—but to enable," states SB Corp. "We want to make sure that viable businesses get the support they need to stand on their own and grow." This philosophy highlights their commitment to not only providing capital but also fostering the overall development of the businesses they support.
A Track Record of Impact and New Initiatives
SB Corp has consistently rolled out major financial programs designed to address specific needs and challenges faced by Filipino MSMEs:
1. P3 Program (Pondo sa Pagbabago at Pag-asenso)
A direct response to the high-interest '5-6' lending culture, this program offers affordable microloans to informal and small businesses, providing a more sustainable alternative for capital access.
2. COVID-19 Response Loans
During the unprecedented challenges of the pandemic, SBCorp provided crucial emergency working capital support to MSMEs severely affected by lockdowns, economic slowdowns, and supply chain disruptions.
3. RISE UP Programs
Building on recovery efforts, these tailored financing initiatives were launched to help businesses reopen, stabilize their operations, and rebuild in the wake of the pandemic, ensuring resilience and continuity.
4. Newly Launched Loan Assistance for Startups
Recognizing the unique challenges faced by nascent businesses, SB Corp has recently introduced new loan assistance specifically designed for newly established businesses. This initiative aims to provide essential early-stage capital to ventures that are often deemed too risky by conventional lenders due to their limited operational history, further broadening access to finance and fostering entrepreneurial spirit from the ground up.
Accomplishments By The Numbers
SB Corporation's dedication to MSMEs is clearly reflected in its measurable impact:
- Financial Outreach: As of 2024, SB Corporation's total financing portfolio reached an impressive P17.81 Billion. In 2024 alone, they added an additional 82,823 MSME borrowers. Cumulatively, as of December 31, 2022, they had disbursed Php13.4 billion in loans to 308,092 distinct MSMEs in partnership with 441 partner conduits.
- Nationwide Coverage: By 2024, SB Corp had successfully provided access to financing in 85 provinces across the country, ensuring broad reach and impact.
- Financial Health: The corporation achieved a Net Operating Income of P564.31 Million in 2024, and notably breached the P1.0 billion revenue level for the first time in its history in 2024, tripling its pre-pandemic performance.
- Client Satisfaction: Reflecting their client-centric approach, 97.40% of stakeholders surveyed in 2024 gave a rating of at least "Satisfactory" regarding SBCorp's services.
Not Just Credit—Capacity Building Too
Beyond direct lending, SB Corp extends its support to broader nation-building efforts. It collaborates with the DTI and private partners to assist MSMEs in formalizing their operations, adopting digital tools, and expanding their market reach. This holistic approach means helping borrowers with essential steps like business name registration and connecting them with valuable training and market opportunities.
Why It Matters
Access to capital remains a key barrier for a significant portion of the Philippines' MSME sector. SB Corporation stands as one of the few institutions specifically built to dismantle this barrier. By championing viable but unbanked enterprises, and now, specifically supporting new ventures, SBCorp doesn't just provide loans; it empowers dreams, creates jobs, and strengthens the economic fabric of local communities, proving that when traditional banks say no, SB Corp finds a way to say yes—because every viable business deserves a fighting chance.
To learn more about their programs, requirements, or to start your application, visit https://sbcorp.gov.ph.
References:
Small Business Corporation (SB Corporation) Official Website: https://sbcorp.gov.ph/
Small Business Corporation Corporate Profile: https://sbcorp.gov.ph/wp-content/uploads/2023/09/Sinag-25Sep2023.pdf
Small Business Corporation Corporate Profile: https://sbcorp.gov.ph/wp-content/uploads/2021/01/Replacement-Text-for-About-the-Corporation.pdf
[E] Letter from SBCorp to GCG re Submission of 2024 Performance Scorecard Accomplishment Report: https://sbcorp.gov.ph/wp-content/uploads/2025/05/SBCorp-2024-PGS-Scorecard.pdf
SBCorp achieves historic milestones in 2024: https://sbcorp.gov.ph/news/sbcorp-achieves-historic-milestones-in-2024/
SB Corporation bags international award for its Machine Learning (ML)-aided loan evaluation for microenterprises: https://sbcorp.gov.ph/news/sb-corporation-bags-international-award-for-its-machine-learning-ml-aided-loan-evaluation-for-microenterprises/
