USAID allots P180 million as lending capital for 25,000 Yolanda-hit micro-entrepreneurs
Aiming to restore the lost livelihood of around 25,000 micro-entrepreneurs affected by super typhoon Yolanda, the United States Agency for International Development (USAID) provided P180 million in seed capital for them through its recently launched credit program.
In partnership with Philippine Business for Social Progress (PBSP), USAID established the Micro Enterprise Disaster Assistance Fund for Resiliency or the MIDAS Fund making loans available to micro-finance institutions (MFIs) for micro-entrepreneurs. It aims to rebuild livelihoods, boost productivity, and help the region better withstand future disasters.
“MIDAS addresses the twin issues of access and affordability of credit after a disaster, whereby MFIs can access funds at zero interest rate and re-lend to members at 4% per annum,” explained Rafael C. Lopa, PBSP Executive Director.
The credit facility targets to create a P50billion revolving credit for 500,000 micro-enterprises in five years and deliver credit and business support to borrowers.
Leading the implementation of the program is PBSP while the four MFIs — Center for Agriculture and Rural Development-Mutually Reinforcing Institutions, ASA Foundation Philippines, Negros Women for Tomorrow Foundation, and Taytay sa Kauswagan Inc. — will provide loans and business support to the micro enterprises.
Each MFI will provide a counterpart of P20 million to grow the Resiliency Fund so that other disaster-affected areas in the future can access credit. USAID, PBSP and the MFIs will work to ensure the disbursement and collection of the Resiliency Fund.
“Inclusive growth has the power to advance stability and prosperity in the Philippines,” said USAID Philippines Mission Director Gloria D. Steele. “It is through jobs and other livelihood opportunities that people can lift themselves out of poverty and contribute to sustainable growth in their communities and throughout the nation.”
To date, the United States government has provided almost $143 million relief and rehabilitation assistance for Yolanda survivors, the US embassy here said.