'Philippines faces $206-B funding gap for SMEs'
The Freeman
|May 29, 2025
The Philippines is facing a $206-billion funding gap for small and medium enterprises (SMEs), the second largest in Asia-Pacific, amid various financial barriers that effectively slow the industry’s growth.
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In a briefing yesterday, leading global digital payments Visa said Filipino SMEs continue to face challenges, specifically funding access, even as the sector makes up 99 percent of all business enterprises in the country.
Visa country manager Jeffrey Navarro said the Philippines has a $221-billion demand for formal credit, but only a measly $15 billion is available for SMEs.
Similarly, the Magna Carta for SMEs mandates lending institutions to allocate eight percent of their loans for small businesses, but only half or just 4.52 percent is the share of SMEs in banks’ total loan portfolios.
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