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DTI-OWWA Enterprise Development and Loan Program for OFWs: Requirements and Application Guide

The Department of Trade Industry (DTI) and the  Overseas Workers Welfare Administration (OWWA), in partnership with Land Bank of the Philippines (LBP) and the Development Bank of the Philippines (DBP), are teaming up to help qualified Overseas Filipino Workers (OFWs) and their families start their own business through the Enterprise Development and Loan Program (EDLP).

small-business

Photo by Fikri Rasyid on Unsplash

Guide to Loan Program of OWWA for Filipinos who Want to Set up a Home Business

Previously known as OFW-Reintegration Program (ORP) and more popularly known as OWWA loan, the OFW-EDLP aims to help Filipino migrant workers stay in the country with their loved ones by helping them establish a business enterprise.

Eligible Borrowers

  • OWWA member, active or non-active;
  • Has completed Enhanced Entrepreneurial Development Training (EEDT);
  • OFWs working abroad, or about to leave may be represented by the following: If OFW is married, by the legal spouse;
  • If OFW is single, widow, widower, or separated-in-fact;
  • Parents not more than sixty (60) years old; or
  • Children who are at least eighteen (18) years old.

Eligible Projects

There are specific projects that can be covered under the EDLP like:

  • Franchising business;
  • Contract tie-up with top 1000 corporations;
  • Agri and non-agri production/manufacturing/ Construction/rental business/ Service/trading business/ Transport service; or
  • Any viable project, whether existing or new.

The basic requirement is for the enterprise to at least be able to generate sufficient cash to take care of the projected amortization of the loan.

Loan Security/Collateral

The loan can be availed with the following as collateral:

  • Object that needed financing;
  • Mortgage-able project assets (machines or equipment); and
  • Other assets owned by the borrower.

Interest Rate

The OFW-EDLP has an interest rate of 7.5% per annum for the entire duration of the loan.

Loan Purpose

The loan can be applied towards a business’ Working Capital and Fixed Asset Acquisition.

Project Cost-Sharing

The borrower’s equity is at a minimum of 20% of the Total Project Cost (TPC).

Loan Amount

The loanable amount depends on the project needs and the amount of equity participation of the borrower.

For Individual Loan Borrowers (single proprietorship)

a. Minimum – Php100,000.00
b. Maximum – Php2,000,000.00

For Group Loan Borrowers (partnerships, corporations, cooperatives)

a. Minimum- Php100,000.00
b. Maximum – Php5,000,000.00

Loan Repayment

The loan can either be short-term with a maximum of one (1) year; or based on cash flow but not more than 7 years, inclusive of a 2-year grace period.

Application Procedures

To avail of the OWWA loan,

  • First, finish the Enhanced Entrepreneurial Development Training (EEDT).

Infographic-Enterprise-Development-Training

For more information and for further evaluation of your project proposal, visit the nearest Landbank Lending Center or Landbank Branch.

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