City Government of Pasig
10 July 2020 – present
Digitization & New Technologies, and Perspectives on Productivity, Governance, and Development
The TAPAT (Tulong at Pampuhunang Ayuda sa Taga-Pasig, or Help and Capital Aid for Pasig Residents) is an initiative that offers loans to entrepreneurs and job-seeking residents to jumpstart Pasig City’s economic recovery from the effects of the COVID-19 pandemic.
Background and Problem
As COVID-19 has not only impacted public health in the Philippines but has also severely hindered its economy, it follows that recovery does not only depend on medical measures such as mass testing and vaccination, but also through the revitalization of the economy both at the local and national levels. Building back towards normalcy means that workers and business owners have to be able to reliably provide for their families, but the economic stability and opportunity needed to achieve this has been limited.
Solution and Impact
On 10 July 2020, the City Government of Pasig officially launched the TAPAT program in order to address the challenges faced by the local economy amidst the COVID-19 pandemic. The program, which can be accessed online via https://pasig.accessleap.com, provides three kinds of financial assistance designed to address the diverse challenges faced by the residents of Pasig City.
The first kind of loan, Balik Negosyo (Return to Business), provides loans of up to PHP 10,000 to micro, small, and medium enterprises (MSMEs) so that they may be able to make the necessary adjustments to comply with updated health and safety standards. The second, Bagong Negosyo (New Business), also provides up to PHP 10,000 for the establishment of new MSMEs. The third category, Balik Trabaho (Return to Work), offers loans of up to PHP 5,000 to displaced workers for the completion of application requirements for new employment.
All loans under TAPAT only require payment at the beginning of the second year after the loan is approved, providing a cushion period that enables borrowers enough time to settle their obligations with no interest rate. A 3% interest rate would be imposed if borrowers would fail to pay within the given allowable payment period.
The loan process itself is designed to be as contactless as possible, with applications accomplished online and the loans themselves disbursed through an electronic money transfer service.
As of 1 September 2020, around 2,000 loan applications have been approved under the TAPAT program. The City Government has allotted PHP 200,000,000 for the program, aiming to cover up to 40,000 beneficiaries. As of 3 November 2021, seven batches of loan disbursements have been completed.
The program is also attempting to expand its coverage beyond business and employment through the addition of a loan category for families. It is also seeking to partner with private institutions and organizations to strengthen the program in its efforts to contribute to the economic recovery of the city and its residents from the economic effects brought by COVID-19.
A screengrab of the Pasig TAPAT website
A screenshot of the TAPAT Loan Program scheme
Casinas, J.A. (2020, July 10). Pasig City formally launches loan program for economic recovery. Manila Bulletin. https://mb.com.ph/2020/07/10/pasig-city-formally-launches-loan-program-for-economic-recovery/
Kabagani, L. J. (2020, September 3). Pasig to release 1st batch of small loan grants. Philippine News Agency. https://www.pna.gov.ph/articles/1114328
Marquez, C. (2020, July 2). Pasig to launch ‘TAPAT’ program to provide loans for business owners. Inquirer.Net. https://newsinfo.inquirer.net/1300942/pasig-to-launch-tapat-program-to-provide-loans-for-business-owners
Tobias, L. A. (2020, November 7). LGU loans and other small business loans. The Manila Times. https://www.manilatimes.net/2020/11/07/business/columnists-business/lgu-loans-and-other-small-business-loans/792488/Pasig City Website (2021, November 9). Tulong at Pampuhunang Ayuda para sa Taga-Pasig (TAPAT) Loan Program. https://www.pasigcity.gov.ph/article-post?news=6964001