Filipinos overseas who plan to start a business when returning to the Philippines can receive support through OWWA’s OFW Reintegration Program.
Through the OFW–Enterprise Development and Loan Program (OFW‑EDLP), qualified OFWs can access business training and affordable financing to help them transition from overseas employment to local entrepreneurship.
What is the OFW–EDLP?
The OFW–EDLP is a reintegration loan facility jointly implemented by OWWA and government financial institutions such as Land Bank of the Philippines (LANDBANK) and Development Bank of the Philippines (DBP). It provides financing for viable livelihood or business projects of returning or active OFWs and their families.
Who can apply?
- Active OWWA member OFWs (land-based or sea-based).
- Former OFWs/returning OFWs with proof of overseas employment and OWWA membership (subject to OWWA’s eligibility rules and cut‑off periods for returning OFWs).
- For group loans: OFW groups, cooperatives, or corporations composed mainly of OFWs.
Applicants must also complete the required Enterprise Development Training (EDT) before their loan application is endorsed to the bank.
Eligible projects
The loan may be used to finance income-generating projects, such as:
- Franchise businesses
- Service or trading businesses
- Manufacturing or production
- Agriculture, agri‑business, and related ventures
- Transport services and similar enterprises
Project proposals must be feasible, sustainable, and supported by a business plan or feasibility study.
Loan amount and equity
- Minimum loan amount: ₱100,000
- Maximum for single proprietorship: up to ₱2,000,000
- Maximum for partnership/corporation or OFW group: up to ₱5,000,000
The standard project cost‑sharing is:
- Borrower’s equity: at least 20% of the Total Project Cost (TPC)
- Loan portion: up to 80% of the TPC
This means the borrower must provide at least 20% counterpart (cash, existing assets, or acceptable forms of equity) and the remaining 80% may be financed by the loan, subject to bank evaluation.
Interest rate and loan terms
- Interest rate: 7.5% per annum, fixed for the duration of the loan (as commonly published for OFW‑EDLP; actual rate may be updated by the bank).
- Short‑term loans: up to 1 year, usually for working capital.
- Term loans: up to 7 years, including a grace period on principal (up to 2 years, depending on project cash flow and bank policies).
Final terms and conditions, including grace period and amortization schedule, are determined by the lending bank after evaluating the borrower’s capacity to pay and project viability.
Collateral requirements
The loan is not a grant; it is a regular bank loan that requires acceptable collateral and is subject to standard credit investigation and underwriting rules.
Typical collateral may include real estate mortgage, chattel mortgage, or other assets acceptable to the bank. Specific collateral requirements depend on the loan amount, project type, and the bank’s assessment.
Key documentary requirements
While requirements may slightly vary by region and bank, applicants are generally asked to prepare the following: [web:2][web:6][web:8]
- OWWA Certification confirming the applicant is an active or former OFW and has completed the Enterprise Development Training (EDT).
- Business plan or feasibility study for the proposed project.
- Proof of overseas employment / repatriation (passport, visa, employment contract, or similar documents).
- DTI Business Name Registration (for sole proprietorship) or SEC registration (for partnership/corporation), as applicable.
- Mayor’s Permit / Barangay Business Permit.
- Valid IDs and biodata or résumé of the borrower.
- Income Tax Return and financial statements for existing businesses, if available.
- Statement of Assets and Liabilities and relevant collateral documents, depending on loan size and bank evaluation.
First‑time entrepreneurs with no existing financial statements may still qualify as long as they complete the EDT and submit a viable business plan and collateral acceptable to the bank.
Step‑by‑step application process
- Contact or visit the nearest OWWA Regional Welfare Office. Inquire about the OFW Reintegration Program / OFW‑EDLP and register for the Enterprise Development Training (EDT).
- Attend the EDT. The training covers basic business planning, financial literacy, and managing a small enterprise.
- Prepare your business plan and requirements. After EDT, draft or refine your business plan, gather registrations, permits, IDs, and collateral documents.
- Secure OWWA Certification. OWWA will issue a certification that you are an OFW beneficiary who has completed EDT, which you will present to the bank.
- Submit your loan application to LANDBANK or DBP. The bank will evaluate your credit standing, project viability, and collateral.
- Undergo credit investigation and project appraisal. Bank officers may visit your proposed project site or existing business as part of their evaluation.
- Loan approval and release. Once approved, you will sign loan documents and the bank will release funds according to the approved schedule and project requirements.
Processing time can vary depending on the completeness of documents, the nature of the project, and the bank’s internal processing time.
Important reminders
- The OFW–EDLP is a loan, not a dole‑out or cash assistance; it must be repaid with interest according to the bank’s schedule.
- Completion of the Enterprise Development Training (EDT) is mandatory before endorsement to the bank.
- Loan approval is made by the partner bank (LANDBANK or DBP), not by OWWA. OWWA certifies your eligibility and provides training and business counseling.
- Project viability, capacity to pay, and acceptable collateral are crucial for approval.
- Program guidelines (interest rate, loan ceilings, and eligibility rules) may change, so applicants should always confirm the latest information with OWWA and the partner banks.
Where to get updated information
For the latest guidelines and requirements, visit the official OWWA website or contact your nearest OWWA Regional Welfare Office and partner bank branch (LANDBANK/DBP).
You can also inquire via the OWWA Operations Center hotlines or through the official OWWA social media pages for updated advisories and schedules of Enterprise Development Training.