UnionBank recently inked a partnership with state-owned Philippine Guarantee Corporation (PHILGUARANTEE) and became the first bank to onboard the Guarantee Program that will provide cushion to small businesses affected by the COVID-19 pandemic.
Under the agreement, PHILGUARANTEE will cover 50% of new and/or incremental MSME loan exposure for UnionBank, allowing the bank to continue lending to a wider base of micro, small and medium enterprises (MSMEs) particularly those who have been greatly affected by the pandemic, while at the same time mitigating risks.
With this, UnionBank continues to pursue its transformational journey in supporting as many small enterprises to grow their businesses through digital solutions and alternative credit underwriting, which may have been put on hold during these challenging times.
Meanwhile, this collaboration aligns with PHILGUARANTEE’s role to encourage the banking sector to continue lending to MSMEs under the government’s economic recovery program due to the pandemic.
A virtual signing ceremony was held last Aug. 5, attended by UnionBank key officers namely chief finance officer and treasurer Jose Emmanuel Hilado, Transaction Banking Center Head Ramon Duarte, and SME business group head Jujut Enriquez, as well as PHILGUARANTEE officials led by president and CEO Alberto Pascual, and national treasurer and PHILGUARANTEE board alternate chairperson Rosalia De Leon.
