(PAGASA 24-HOUR PUBLIC WEATHER FORECAST as of Wednesday, 22 May 2024) Easterlies affecting the country. 𝗙𝗒π—₯π—˜π—–π—”π—¦π—§ π—ͺπ—˜π—”π—§π—›π—˜π—₯ π—–π—’π—‘π——π—œπ—§π—œπ—’π—‘: Butuan City, Agusan del Norte, Agusan del Sur, Dinagat Islands, Surigao del Norte and Surigao del Sur will experience partly cloudy to cloudy skies with isolated rainshowers or thunderstorms due to Easterlies. Possible flash floods or landslides during severe thunderstorms. 𝗙𝗒π—₯π—˜π—–π—”π—¦π—§ π—ͺπ—œπ—‘π—— 𝗔𝗑𝗗 π—–π—’π—”π—¦π—§π—”π—Ÿ π—ͺπ—”π—§π—˜π—₯ π—–π—’π—‘π——π—œπ—§π—œπ—’π—‘: Light to moderate winds coming from East to Northeast will prevail with slight to moderate seas (0.6 to 2.1 meters).

Wednesday, 24 April 2024

SEC provides resilient funding alternative to Caraga’s local enterprises

By Mariesh CeledeΓ±a

BUTUAN CITY (PIA) – The Securities and Exchange Commission (SEC) conducted a roadshow on Capital Formation for MSMEs and Startups in Butuan City on April 12. 

SEC Commissioner Karlo S. Bello attended the roadshow that served as the kick-off engagement of SEC in Butuan as  its first and only satellite office in Caraga, which opened to the public on March 22. 

The activity was attended by more than 200 MSMEs and individuals from different parts of the region who were interested in knowing and learning about financing and capital markets made available for their sector. 

This assisted the different micro, small, and medium enterprises (MSMEs) in accessing the financial market as startup and expansion capital for their businesses.

It can be recalled that after Super Typhoon Odette (international name: Rai) struck Caraga on Dec. 16, 2021 followed by other natural calamities and COVID-19, several businesses in the region were either completely or partially destroyed, which caused losses in financial resources and left these MSMEs with difficulty to staying afloat and recovering.

SEC Commissioner Karlo S. Bello delivered his message and announced its upcoming collaboration with the city government of Butuan for the Securities and Exchange Commission-Communication Awareness Network (SEC-CAN). (Photo: PIA Caraga)

Bello expressed his support for the Marcos administration’s mandate and priority in addressing the needs of MSMEs, especially in vulnerable areas. 

“This government continues to highlight the importance of providing different financing options for MSMEs, especially as businesses continue to recover from the effects of the COVID-19 pandemic. We recognized that there really is a need to broaden the financing instruments available for MSMEs,” said Bello.

Oliver Leonardo, director of Markets and Securities Regulation Department of SEC, highlighted the option of crowdfunding as a fundraising method, which was participated in by a large number of investors.

Crowdfunding is an alternative to traditional loans, which offer or involve sale of securities on a limited scale, conducted by an intermediary using an online electronic platform.

Lawyer Oliver Leonardo, director of Markets and Securities Regulation Department of the Securities and Exchange Commission, together with the resource speakers of the roadshow on Capital Formation for MSMEs and Startups answered thequestions from participants, especially on the topic of crowdfunding as a funding alternative for MSMEs. (Photo: PIA Caraga)

This option became substantial when guest speakers from Round One, The Philippine Stock Exchange, Inc., and Investment & Capital Corporation of the Philippines discussed further the crowdfunding platform that MSMEs may avail of for their business capital. 

He also introduced some programs of the SEC,  such as Securing and Expanding Capital for Farms and Agri-Business Related Modernization Schemes (SEC FARMS), which helps agri-businesses register their securities not exceeding P500 million per project through a simplified process, and the SEC Real Estate Investment Trust (REIT) for real estate businesses established for the purpose of owning income-generating real estate assets.

As host city of the roadshow, Mayor Ronnie Vicente Lagnada presented the various plans and long-term future developments of the city that can help in the progress of the MSMEs.

"I would like to thank the SEC for doing this roadshow that established partners with funding institutions and better access to finance groups, we can at least develop new industries based on our strengths," Lagnada  said. 

Butuan City Mayor Ronnie Vicente C. Lagnada presented the projects and programs in the pipeline to aid in the city’s development and progress as the regional and capital hub of Caraga Region. (Photo courtesy of Butuan City PIO)

According to Josephine Fugoso, a participant in the activity, “One of the struggles of business owners and MSMEs is how to maintain and gain financial capital for their businesses, especially after being hit by unforeseen events like calamities.”

“If there is a project and then there is a calamity, they have to start all over again because the initial project was disrupted by the calamity or disaster. With the situation, MSMEs are challenged  to find ways to recover and rebuild their businesses, especially since each has a family to also prioritize,” Fugoso said.

“This activity greatly helped me, and I am very thankful because I gained a lot of input, especially on crowdfunding and other services of SEC that are important, thatI can share with other organizations,” she added.

Through the roadshow on capital formation, the young and existing MSMEs in the region were provided with new financing options that will make them and their businesses sustainable and resilient. (MFC/PIA-Caraga)