OWWA Business Loan for Seaman

OWWA and Membership Benefits

The Overseas Workers Welfare Administration (OWWA) is an attached agency of the Department of Labor and Employment (DOLE) tasked with developing and implementing programs for OFWs and their families. It is also entrusted to create an OWWA Trust Fund. 

When an OFW is a member of OWWA, he or she can avail of different benefits such as social benefits, education and training, repatriation, reintegration services, and special programs. To become a member, the OFW must pay a membership fee of US$25, valid for two years through enrollment when the POEA contract is processed or through a voluntary registration at overseas job sites. 

Business Loan Programs for Seaman

The business loan for seaman come under the reintegration program for OFWs. Here are the different loan programs available for OWWA members:

Balik Pinas! Balik Hanapbuhay! Program (BPBHP)

This financial assistance worth ₱20,000 is intended for distressed or displaced returning OFWs to help them start their own business or as an added capital. 

Requirements

• Application form with a letter of undertaking stating that the assistance will be to fund a new business or expand an existing one. 
• Entrepreneurial Development Training certificate. 
• An RWO Director approved business proposal that outlines the feasibility or sustainability of the chosen business. 
• Proof of repatriation such as the airline ticket, passport, or travel document. 

Application Process

• The OFW must visit the OWWA regional office to which the OFW belongs. 
• Collect the queueing number and wait.
• Sumit the complete requirements. 
• Attend the training sessions required at the RWO office. 
• After the training completion, submit the rest of the requirements and the application form. 
• Prepare for the site inspection which will be conducted by the OWWA RWO. 
• Once approved, the OFW may claim financial assistance. 

OFW Enterprise Development Loan Program (OFW-EDLP)

This loan program is deisgned to help Filipinos put up their own businesses and generate a steady income so that they may never have to work overseas again and be away from their loved ones. This loan is in partnership with the Development Bank of the Philippines (DBP) and the Land Bank of the Philippines. 

Loan Amount:

• Individual: ₱100,000 to ₱2,000,000
• Partnership/Corporation/Cooperatives: ₱100,000 to ₱5,000,000

Interest Rate: 7.5% per annum

Equity: 20% of the Total Project Cost (TPC)

Repayment: 

• Short-term Loan: up to 1 year
• Long-term Loan: up to 7 years, including 2 years grace period (based on cash flow)

Eligibility Criteria

• Active or inactive OWWA member
• Completed EEDT (Enhanced Entrepreneurial Development Training)
•  If the OFW is not in the Philippines, he/she may be represented by the following:
  • Spouse (if married)
  • Parents who are not more than 60 years old or children if they are at least 18 years old (if the OFW is single, separated, or widowed) 

Application Process

• The OFW or his/her representative may visit the OWWA Regional Welfare Office and undergo an eligibility screening or orientation. 
• Completion of the necessary training. 
• Get the certification required and submit it to the Land Bank of the Philippines. 
• For more information or evaluation of the project proposal submitted, the OFW/representative can visit the nearest Land Bank branch or Lending unit. 

Conclusion

Seamen and other OFWs rely on the renewal of their contracts to continue earning to support their families. When their contracts end, most of them struggle to get a job, or if they do, it is not the salary they have already used to. 

OWWA’s loan programs ensure that OFWs can start their own businesses and establish a revenue source so that they no longer have to work overseas.