Overseas Filipino Workers – Enterprise Development and Loan Program

The Enterprise Development and Loan Program, formerly known as OFW-Reintegration Program, is an enterprise development intervention and loan facility of the Overseas Filipino Workers Administration, in partnership with Land Bank of the Philippines and the Development Bank of the Philippines intended to support enterprise development among Filipino migrant workers and their families.

Who are eligible OFWs who can avail of EDLP

  • Certified OWWA members, active or non-active
  • Has completed Enhanced Entrepreneurial Development Training
  • For OFWs working abroad, they can 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
  • Children who are at least eighteen (18) years old

What are eligible projects or businesses under EDLP

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

Ability to pay loans
The business should generate a cash flow sufficient to pay the projected amortization of the loan, whose interest is 7.5% per annum for the entire duration of the loan.

Loan Purpose: Working Capital and Fixed Asset Acquisition
Project Cost-Sharing: Borrower’s Equity: minimum of 20% of the Total Project Cost (TPC)

Loan amount:
The loan amount shall depend on project needs and amount of equity participation of the borrower:

  • For Individual Loan Borrowers (single proprietorship): Between P100,000 and P2,000,000
  • For Group Loan Borrowers (partnerships, corporations, cooperatives): Between P100,000 and P5,000,000

Loan payment terms
Short-Term: Up to one year for borrower to finish loan payment.
Term Loan: based on cash flow but not to exceed 7 years, inclusive of maximum of 2 years grace period

Loan Security/Collateral:

  • Object of financing
  • Mortgageable project assets (machines or equipment) and other assets of the borrower

How to avail of this loan:

  1. Interested OFWs or qualified representatives may submit business plans and are advised to undergo Entrepreneurial Development Training seminar at OWWA regional offices. The seminar will orient them on financial and business management, on various business and income-generating livelihood undertakings, and other pertinent information they need in setting up and sustaining an enterprise.
  2. Loan applications are endorsed to Land Bank for evaluation and processing based on the criteria set by Land Bank (borrower’s credit worthiness and project viability)
  3. Loan evaluation, packaging and approval shall be completed within 45 working days upon receipt of complete loan requirements.

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