OWWA Business Loan for OFW Requirements

How does a Business Loan for OFW work?

A Business Loan for OFWs is a financial program designed to exclusively help Filipinos working overseas by allowing them to borrow extra cash and grow their respective businesses. This immediate loan service enables OFWs to develop the overall performance of their business and fund whatever marketing, operational, or expansion needs of the business. 

Types of OWWA Business Loan

Balik Pinas! Balik Hanapbuhay Program

This type of loan program serves as livelihood assistance that is extended for OFWs who are in need of cash as additional capital to establish a business or expand an existing business operation. It is offered exclusively for Filipinos who once worked abroad but had to come back to the Philippines in order to give them a chance to earn through their own business. OFWs can apply as much as Php20,000. 

Documentary Requirements

1. Application Form

• This can be downloaded from the OWWA website and must be submitted with a guarantee that the funds will be used strictly for self-employment or to start or expand a livelihood initiative or enterprise.

2. Certificate of Entrepreneurial Development Training

• This is given to the applicant when they have completed training with a government agency.

3. Business plan or proposal

• This must be certified by an OWWA Regional Welfare Office (RWO) Director in your region, stating whether the proposed livelihood endeavor is sustainable or feasible.

4. Proof of repatriation or return to the Philippines

• It could be in the form of a travel document, passport, and airline ticket. 

Overseas Filipino Workers – Enterprise Development and Loan Program (OFW-EDLP)

This type of loan service was previously introduced by OWWA as OFW-Reintegration Program (ORP) and currently works in partnership with the Land Bank of the Philippines (LBP) and the Development Bank of the Philippines (DBP). 

Unlike other OWWA Business Loans for OFWs, OFW-EDLP considers eligible applicants who need working capital and fixed asset acquisition for their business as an enterprise development intervention and loan facility. In addition, one of the many OWWA Business Loans for OFW Requirements in this kind of program is the loan security or collateral such as the object of financing and project assets (machines or equipment) and other assets the borrower can provide as collateral.

Loan Features

Loan Amount

• Individual Loan Borrowers (single proprietorship): Php100,000 up to PHP 2,000,000
• Group Loan Borrowers (partnerships, corporations, cooperatives): Php100,000 up to PHP 5,000,000

Loan Tenure

• Short loan term: within one (1) year
• Term loan: based on cash flow but shall not exceed 7 years with a maximum of a 2-year grace period.

Interest Rate: 7.5% per annum for the entire duration of the loan

Eligible Projects:

• Business of Franchising
• Contracts with Fortune 1000 companies
• Production, both agricultural and non-agricultural
• Manufacturing
• Construction
• Rental Company
• Business of Service or Trading
• Service of Transportation
• Any feasible project, whether old or new

Eligibility Criteria

• Active or inactive OWWA member
• Successful completion of the Enhanced Entrepreneurial Development Training (EEDT)
• OFWs working abroad or those who are just about to leave may be represented by the following:
  • If the OFW is married: by the legal spouse
  • If the OFW is single, widow, widower, or separated-in-fact: by the applicant’s parents whose age is not older than sixty (60) years old or children who are at least eighteen (18) years old.

Tulong Pangkabuhayan sa Pag-unlad ng Samahang OFWs (Tulong PUSO)

This is a type of grant assistance given to OFW organizations, not in the form of cash, but in the form of equipment, raw materials, tools and jigs, and other support services with an aim to support the undertakings of OFW organizations with more than 51 members through the formation, enhancement, and restoration of livelihood projects. 

The maximum loan amount is based on the required amount to complete the project or business up to a maximum of PHP 1,000,000 for OFW organizations composed of more than 51 members.

Documentary Requirements

1. Application form completed.
2. Entrepreneurial Development Training Certificate (for start-up/formation).
3. DOLE/SEC/CDA registration copy
4. Certification from the RWO Director that the OFC-applicant is a legitimate OWWA-accredited OFW organization.
5. Prole Beneficiary
6. Business Permit
7. Proposal or Business Plan (with an indication that the proponent has an equity equivalent to at least 20 percent of the total project cost)
8. A Business Manager who is authorized to file/apply on behalf of the group or organization and is designated by a Board Resolution.

How to avail of an OWWA Business Loan for OFWs?

Prior to the loan application, borrowers shall first consider checking if they are eligible to avail of a business loan by looking into the loan requirements. OWWA Business Loan for OFW Requirements can be found on OWWA’s official website. Once pre-qualified, the applicant shall secure and fill out the application form which will be eventually submitted to the nearest OWWA office together with the other documents.

Conclusion

In the event that OFWs need to head back home due to financial or employment concerns, OFWs seem to have nothing to worry about as they are granted business loan options offered across different lending institutions or banks including government agencies like OWWA. Such programs ensure that all Filipinos, who once risked working abroad may still receive an opportunity in their home country to start their business and generate an income stream for themselves and their families.