Government opens ₱20 million credit line for small businesses

Expanded SBCorp programs offer collateral-free options and one-year grace periods for MSMEs and returning OFWs facing 2026’s economic hurdles.

Small businesses and returning overseas Filipino workers (OFWs) may soon get much-needed financial relief, with expanded access to government-backed loans aimed at helping them stay afloat and grow despite rising costs and global disruptions.

The Department of Trade and Industry (DTI), through its Small Business Corp. (SBCorp), is rolling out financing programs that allow eligible borrowers to access between ₱30,000 and ₱20 million, with flexible repayment terms and built-in grace periods.

Under the MSME Business Fund, loans of up to ₱5 million require no collateral and come with a one-year grace period on both principal and interest, giving businesses time to recover and reinvest before repayments begin.

Rebuilding at home

A parallel program, the OFW Negosyo Fund, is designed to support returning OFWs looking to start or rebuild their livelihoods. Backed by a ₱2-billion allocation, it offers similar loan ranges, with collateral-free options up to ₱3 million for new borrowers and ₱5 million for existing ones, along with repayment terms of up to five years and grace periods of up to 6 to 12 months.

The push comes as small enterprises face mounting pressure from higher fuel prices and operating costs, while reintegration remains a key challenge for OFWs returning home.

In an initial rollout, 11 businesses received a total of ₱2.9 million in funding under the OFW Negosyo Fund, supporting ventures across food, retail, services, and light manufacturing.

Applications are open through SBCorp’s website (sbcorp.gov.ph) and DTI Negosyo Centers nationwide, with processing taking around 7 to 10 days for complete submissions.

 

 

From sari-sari stores to startup ventures, the government is opening a ₱20 million lifeline. Discover how the new MSME and OFW Negosyo Funds offer grace periods and collateral-free options to keep your business dreaming big in 2026.

 

 

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