Mayor authorized to negotiate partnership with SBC for stimulus package

  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  

This post has already been read 410 times!

The City Council, during last Monday’s regular session, authorized Mayor Benjamin B. Magalong to negotiate and enter into an agreement with the Small Business Corporation (SBC), an attached agency of the Department of Trade and Industry (DTI), for the smooth implementation of the city’s Baguio Revitalization Actions for a Vibrant Economy- Economic Stimulus Package (BRAVE-ESP).

The city’s proposed partnership with the SBC is to facilitate the grant of no-interest loans to heavily impacted micro and small businesses who want to recover from the slump caused by the implementation of the community quarantine for nearly four months.

Under the proposed agreement that will be signed by Mayor Benjamin B. Magalong representing the city government and SBC represented by its president and chief executive officer Ma. Luna E. Cacanando, the city will provide funding for the BRAVE-ESP amounting to P100 million; promote the aforesaid program; set up a trust fund or bank account where the borrowers would deposit their monthly payments, including applicable penalty charges; authorize the collection of service fee equivalent to 6 percent to 8 percent of the loan amount and monthly penalty charge equivalent to 0.5 percent of the borrowers outstanding balance, whereas the penalty charged shall be remitted to the city; receive applications, determine completeness of documents, pre-quality or pre-screen loan applications based on priority sector and forward applications to the SBC for screening and processing; process the loan release of approved applications; take full responsibility in the proper disposition and disbursement of funds in accordance with set guidelines and remit to SBC its corresponding fee on a monthly basis.

On the other hand, the SBC shall serve as the conduit of the city to screen, evaluate, process and recommend approval of applications based on the established guidelines; ensure at least 80 percent collection efficiency of the loan; maintain individual record or ledger for each qualified applicant; regularly remind borrowers of their payables before the due date and provide periodic update and submit status report to the city.

Further, the parties shall jointly monitor and oversee the implementation of the BRAVE-ESP on a monthly basis and dispose the P100 million fund within 4 months upon signing of the agreement.

The proposed agreement will bind the parties for 3 years or until 100 percent of the total loan amount has been collected whichever comes first.

The agreement provides each of the parties acknowledge and agree that the trademarks, service marks and copyrights of the other party belongs to such party, and neither party shall in any party use in any circumstances use, copy or deal with the trademarks, service marks or copyrights, except as expressly authorized by the owner of the same.

Each party agreed that it will not conduct itself, and to procure that its employees shall not conduct themselves, in such a manner as to cause the other party to be in breach of its obligations as a data user under the Data Privacy Act.

Moreover, the parties ensured that all information, whether personal data or otherwise, relating to the loan applicants or borrowers ore obtained lawfully and protected in compliance with the requirements of registration enforced from time to time, including without limitation. By Dexter A. See

 

Comments