RestartME plans P5-B revolving fund to aid disaster-stricken MSMEs
by MADELINE B. MIRAFLOR
Manila Bulletin, September 15, 2016
An organization meant to provide a quick response fund to micro-entrepreneurs affected by natural or man-made disasters has recently been built, sustainability of which will depend on a P5-billion revolving fund that will be established over the long-term.
Philippine Business for Social Progress (PBSP), the largest business-led social development NGO, recently launched Restart Micro-Enterprise, Inc. (RestartME) with the assistance of United States Agency for International Development (USAID).
PBSP Executive Director Rafael Lopa said the long-term goal of RestartME is to create a P5-billion revolving credit for micro-enterprises to enable the organization to deliver a coordinated national response when the need comes.
With RestartME, more calamity-stricken micro-entrepreneurs all over the country can gain access to a quick response loan fund which can be paid at very low interest rates and flexible terms and conditions.
The organization will also provide clients with credit education, micro insurance, and trainings on disaster preparedness and savings mobilization as well as business support to enable them to be better equipped to face future disasters.
“We can never tell when disasters will come or how much damage they will leave. That’s why having RestartME is a big milestone for disaster response because now, we are certain that when need comes, we will no longer worry about pooling funds,” Lopa said.
“RestartMEwill be able to provide the assistance immediately and help our people rebuild their lives. For this reason, we also encourage other institutions to join us and contribute in growing the fund,” he added.
RestartME is an offshoot of the Micro-Enterprise Disaster Assistance Fund for Resiliency Program (MIDAS), which USAID launched in 2014 in partnership with PBSP together with Center for Agriculture and Rural Development, Inc. (CARD), ASA Philippines Foundation, Taytay sa Kauswagan, Inc. (TSKI), and Negros Women for Tomorrow Foundation (NWTF).
MIDAS was created to provide a stimulus loan fund to micro-entrepreneurs affected by Super typhoon Yolanda.
USAID provided the seed capital of R176 million (US$4 million) for MIDAS, which the aforementioned Micro-Finance Institutions accessed and disbursed in the form of loans to their Yolanda-affected clients at a low rate of 4 percent per annum.
RestartME intends to build on the success of MIDAS and even grow and manage the resiliency fund over the long term across different areas.
“With Restart Micro-Enterprise in place, micro-entrepreneurs will have better opportunities to cope with disasters, and be secure that growth will continue despite the challenges,” said USAID Mission Director Susan Brems.