The Small Business Corporation (SB Corporation), the micro financing arm of the Department of Trade and Industry, has launched a P100 million loan facility for repatriated Overseas Filipino Workers (OFWs) affected by the COVID-19 pandemic.
The program, Helping the Economy Recover thru OFW Enterprise Start-ups (HEROES), is a component program of the Pondo sa Pagbabago at Pag-asenso (P3) fund under the Department of Trade and Industry (DTI). The loan facility is aimed at helping repatriated OFWs rebuild their lives by providing opportunity to become entrepreneurs.
Under the HEROES Program, returning OFWs who were retrenched due to the COVID-19 pandemic must present a video pitch of his/her start-up business proposal outlining key components on the nature of business, product knowledge, management capability, market opportunity, competitive advantage, financial understanding and business continuity.
Loan proceeds should strictly be used for working capital to start and sustain the business operations. The loan may be used for the acquisition, production and sale of products and required inventory, necessary equipment and machinery for the business, payment of initial worth of operating costs incurred such as payroll, rent, utilities and fixed asset loans.
Under the program, OFWs may borrow a minimum of P10,000 up to maximum of P100,000 free of interest and collateral.
A service fee of 6 percent will be charged to loans with 24 months payment term and 8 percent for loans with 36 months payment terms, inclusive of 12 months grace period.