Corporation, bank sign deal to assist small businesses

THE Small to Medium Enterprise Corporation (Smec) and the People’s Micro Bank (PMB) have signed a deal to provide loans to those with limited or no access to capital.
PMB chief executive Anthony dela Cruz said the bank was pleased to become “an institutional partner of the SME Corporation in implementing the financial inclusion credit facility that aims to assist women entrepreneurs engage in wholesale/retail business in textile and tailoring, dress-making, clothe sales and arts and crafts sale”.
“The applicants must complete the business skills training provided by the SME Corporation before they could apply for a loan,” he said.
“Borrowers are required to provide security contribution to cover 30 per cent of the unsecured portion of their loan.”
Dela Cruz said the minimum amount allowable under the credit facility was K1,000 per borrower, while the maximum loan would be K5,000. “The loan funding will be paid directly to the suppliers that provide materials and goods for the borrower’s business activities,” he said.
The loan will not be paid directly to the borrower unless approved by the bank in view of the nature of the borrower’s activities so requires.
“The credit scheme will empower more women entrepreneurs to improve their income-generating activities and grow from informal micro business to semi-formal or formal registered businesses,” he said.
Dela Cruz believes in the potential of the majority of the micro businesses and SMEs in leading the economic development of PNG.