DTI Requires Grace Periods For Payment Of Rent By MSMEs

by Lara B. Sanchez

MSMEs can get some relief with rent payments under DTI Memorandum Circular No. 20-12, Series of 2020It grants a minimum thirty (30)-day grace period on payment of residential rents and commercial rents by micro, small and medium enterprises (MSMEs) during the period of the Enhanced Community Quarantine (ECQ).

The rent covered by the grace period may also be paid in six (6) equal monthly installments beginning from the lifting of the ECQ. MSMEs also cannot be evicted for failure to pay rent within thirty (30) days period from lifting of the ECQ.

Lessors of commercial property may also (a) totally or partially waive rent that falls due during the ECQ; (b) grant reprieve or discounted amount of commercial rents during the ECQ; (c) open for renegotiation the Lease Terms with the lessees, and/or; (d) use other recourse to mitigate the impact of the ECQ to the MSMEs.

MSMEs must signify their request by writing their lessors, providing supporting documents, such as financial statements, proof of enterprise size and lease contract as proof of tenancy.

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