100K-2 milyon loan offerrred by Philippine Government to OFW - Read How To Avail

Isang Magandang Balita para sa ating mga kababayang OFW. Malaking Tulong ang hinahandog ng Philippine Government para sa mga OFW.

DTI-ROG, OWWA SIGN MOU: DTI-Regional Operations Group (DTI-ROG) supervising Undersecretary Zenaida Maglaya speaks during the MOU signing of the Enterprise Development and Loan Program (EDLP) between the DTI and Overseas Workers Welfare Administration (OWWA) to assist Overseas Filipino Workers (OFWs) adjust on their return to the country through entrepreneurship.

MANILA, Philippines - The Department of Trade and Industry (DTI) has formalized its partnership with the Overseas Workers Welfare Administration (OWWA) to implement a program to help repatriated overseas Filipino workers (OFWs) venture into small businesses.

A memorandum of understanding (MOU) has been signed by the DTI-Regional Operations Group (ROG) and the OWWA to formalize their partnership in implementing the Enterprise Development and Loan Program (EDLP) for returning OFWs.

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EDLP, formerly the P2-billion OFW Reintegration Program, seeks to help OFWs and their families who intend to venture into micro, small and medium enterprises (MSMEs) build their own businesses, in support of the government’s reintegration program.

DTI-ROG Undersecretary Zenaida Maglaya said the partnership came at a good time as some OFWs, specifically those from Saudi Arabia, have recently been retrenched due to the oil crisis.

“Now with this situation with our OFWs, it’s good that we have partnered with OWWA because what we really want to happen is that they would still be able to help their families, be able to get a good and decent job, without leaving the country,” Maglaya said.

She added the partnership is timely as the DTI and OWWA intend to promote and advance entrepreneurship for OFWs.

OWWA administrator Rebecca Calzado, for her part, said the EDLP is the “most important” component of the social preparation of OFWs upon their return to the Philippines.

“This is what the MOU is all about—for returning OFWs who wish to find an alternative to overseas employment. These are programs that the government can offer,” Calzado said.

Under the MOU, the OWWA will sustain the promotion of MSMEs as part of the entrepreneurship development component of its Reintegration Program for OFWs.

It will also organize entrepreneurship development trainings, refer prospective OFW-investors to the DTI and offer its business loan program for expansion or start-ups done by OFWs.

The DTI, for its part, will package priority MSME business models to be offered to prospective OFW-entrepreneurs and investors and provide resource persons for OWWA-organizes entrepreneurship development trainings and related activities.

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HERE ARE THE STEPS TO AVAIL OF THIS PROGRAM: 

STEP 1. VERIFICATION OF OWWA Registration
     If you are still outside the Philippines. 

•      Email the Welfare Officer of the Embassy that covers your country of work about OFW Reintegration Program. 
•      The Welfare Officer will verify your registration in OWWA as OFW.
•      Upon verification the Welfaer Officer in your embassy will refer you to the OWWA office  in the Phlippines that covers your place. 
•      When you go home in the Philippines, visit OWWA Office to get the certification.
•      This will be presented to Landbank.

    If you are already in the Philippines, 

•     You can visit the OWWA Office to verify your elegiblity to the program.
•     You will be issued a certification of membership and that you are eligible for the program. This will be presented to Landbank.

 STEP 2. ENTERPRISE DEVELOPMENT TRAINING 

•      You will be advised to attend personally the EDT - Enterprise Training Development.
•      You will present your certificate of attendance on EDT to Landbank as part of the requirement.
•      EDT will be conducted by OWWA, DTI and Landbank.
•      This will empower the OFW on how to manage your business. 
•      This is also the good time ask all your questions about the business loan.

STEP 3. PREPARATION OF BUSINESS PLAN and OTHER REQUIREMENTS
    Prepare your Business Plan and other requirements of Lanbank.
Here are the PROCESSING REQUIREMENTS for the loan:
• OWWA certification that borrower is a bonafide overseas worker, has completed Enterprise Development Training 
• A business plan on the specific project that will generate income for OFW and his/her family 
• With contract growing agreement, purchase order or service contract, if applicable 
• Certificate of Registration with DTI
• Bio-data of applicant
• Mayor’s Permit
• Income Tax Return (last 3 years), if applicable
• Financial Statements (last 3 years, BIR-filed), if applicable
• Latest Interim Financial Statement, if applicable • Statement of Assets and Liabilities 

STEP 4. SUBMISSION OF PROCESSING REQUIREMENTS, REVIEW AND INSPECTION
    Submit your business plan and other requirements to Landbank for review.
Inspection of your business (if already existing) will be done.

STEP 5. APPROVAL OF LOAN
    If approved, Landbank wlll release the fund to the OFW.
    You are now ready to start your business.
    CONGRATULATIONS and God bless your business!

INFROMATION ABOUT THE LOAN:
ELIGIBLE BORROWERSOverseas Filipino Workers as certified and endorsed by OWWA to LANDBANK

ELIGIBLE PROJECTS
Viable projects with confirmed market or Purchase Order (if any) that will generate net monthly income of at least P10,000 

ELIGIBLE LOAN PURPOSES
Working Capital
Fixed Asset Acquisition 
PROJECT COST SHARING
Borrower’s Equity – Minimum of 20% of the Total Project Cost (TPC) Loan – Maximum of 80% of TPC
 
LOANABLE AMOUNTMinimum – P100,000 Maximum – P2,000,000 

INTEREST RATE
Short Term Loan and Term Loan - 7.5% per annum fixed for the duration of the loan

LOAN REPAYMENT 
Short Term Loan - maximum of 1 year 
Term Loan - based on cash flow but not to exceed 7 years inclusive of maximum of 2 years grace period on the principal

HOW TO AVAIL OF A LOAN? 
1. Visit the nearest OWWA Office and undergo orientation/necessary training. 
2. Secure the required OWWA Certification for submission to LANDBANK. 
3. Visit the nearest LANDBANK Lending Center or LANDBANK Branch for more information and evaluation of project proposal.