The city government aims to allocate PHP2 million annually as a support fund for the micro and small enterprises, Councilor Rocky Aliping said Tuesday.

In an interview, he said small businesses have the potential to stimulate economic growth, create employment opportunities, and contribute to increased tax revenues if they continue to operate.

“It (the funding) aims to provide financial assistance to local entrepreneurs and support the growth and development of small businesses in the city that play an important role in the economy,” he said.

Aliping, who co-authored the measure with Councilor Leandro Yangot Jr., said the annual funding will be provided for five consecutive years and will be given to the City Social Welfare and Development Office, which will extend the financing as a loan.

During the pandemic, the city government approved the allocation of a zero-interest pump priming fund.

Business owners benefited from additional funds to sustain their operation after incurring losses when the nationwide lockdown was declared starting March 2020. (PNA)