The Citizen Entrepreneurial Development Agency (CEDA) recently unveiled an arsenal of initiatives and policy changes aimed at wrestling back the Small, Micro and Medium Enterprise (SMME) market from commercial banks and other lenders.In recent years, commercial banks and other lenders have aggressively entered the SMME finance market with attractive products and services, effectively tackling CEDA on its own turf. Analysts said the SMME market slowly drifted away from CEDA, partly due to perceptions about the slim chances of obtaining CEDA support and the relatively simpler processes for obtaining commercial bank finance. While CEDA was offering much lower interest rates, unsecured loans, longer repayment periods and more support, commercial banks were able to leverage on perceptions that obtaining a CEDA loan was near impossible, in the process gaining a foothold in the SMME market. The entry of commercial banks and lenders into the SMME finance arena, some analysts believe, challenged CEDA's dominance and continued relevance in the area of development finance.
However, through its revised guidelines and launch of its Third Strategic Plan (2009-2012), the Agency has taken the fight to its rivals and detractors. Part of CEDA's arsenal of initiatives includes revised limits for loans of P4 million, up from one million, and up to P30 million in the Venture Capital product.
