How to Apply for a Business Loan in OWWA

OWWA Business Loan Program

There are currently three business loan programs available through OWWA: the Balik Pinas! Balik Hanapbuhay! Program, Tulong-PUSO and the OFW Enterprise Development and Loan Program. 

Balik Pinas! Balik Hanapbuhay! Program

Not all returning OFWs come home prepared and planned. Others are distressed and displaced OFWs. When they come home unprepared, they mostly do not have a lot of cash saved up. For this reason, the Balik Pinas! Balik Hanapbuhay! Program is a great help for them to start a small business and restart their lives. 

A maximum amount of Php20,000 is provided as additional capital for their livelihood project. Among the requirements that need to be submitted are the following:

• Barangay Clearance / Certificate
• Membership record with OWWA
• Application Form
• Proof of Repatriation
• Proof of Displacement

OFW-EDLP ( Enterprise Development and Loan Programs)

OFW-EDLP, formerly known as the OFW-Reintegration Program (ORP), is a loan facility meant to help OFWs and their families establish their businesses. This is done in partnership with the Land Bank of the Philippines. 

There are many eligible projects that OFW borrowers can check through the OWWA or Land Bank websites. The loan purposes could either be for the business’ working capital or asset acquisition. 

Loan Features

Loan Amount: 

• Single proprietorships can borrow a minimum amount of  Php100,000 but not more than Php2,000,000.
• Partnerships, Corporations, and Cooperatives can apply for a loan amount of Php100,000 up to Php5,000,000. 

Loan Tenure:

• Short-Term Loans can be repaid within one while term-based loans can be repaid not exceeding 7 years inclusive of a maximum of 2 years grace period.

Interest Rate: 7.5% per annum

Steps to Apply for a Business Loan in OWWA

• Submit a detailed business plan that will show the business earning at least Php10,000 income monthly. 
• Participate in EDT Seminars conducted at OWWA regional offices, and secure an EDT Certificate of Completion. 
• Submit OWWA Information Sheet. 
• If the business is already operating, the following must be submitted:
  • Mayor’s Permit
  • DTI Certificate of Registration
  • Income Tax Return for the last three (3) years
  • Financial Statements filed with BIR, and the latest Interim Financial Statements
  • Business Statement of Assets and Liabilities

Conclusion

OFWs always strive to work hard for their families and loved ones so that they can provide for a better life for their families. However, working abroad lasts for as long as there are opportunities available and the OFW can still withstand the long period of time that they are separated from their families. Once their contracts expire, they have to go home and wait for the next employment. Naturally, when they do not have a contract, they will also not have a source of income. This is the dilemma that the OWWA Business Loan Programs aims to address – for OFWs to still have a steady stream of income when they return home.