The Department of Trade and Industry (DTI) is rolling out a ₱2 billion financing program aimed at accelerating the shift to electric vehicles (EVs) among the country’s small-scale transport players.

In a statement on Friday, April 17, the DTI said the initiative, managed by its financing arm, Small Business Corp., targets individual drivers and transport operators who possess valid business licenses. By providing dedicated capital for the transition, DTI said the government seeks to lower the barrier to entry for cleaner transport technology, which has historically been sidelined by high upfront costs and limited credit access for the informal sector.

Under the terms of the program, eligible borrowers can secure as much as ₱1.5 million for a single vehicle. For operators looking to modernize a small fleet, the credit limit extends to ₱3 million per borrower.

To ease the financial burden of the transition, the loans carry a five-year repayment schedule and a critical one-year grace period on both principal and interest payments.

The moratorium is designed to allow drivers to stabilize their cash flows as they adjust to new operational costs and charging routines before debt servicing begins.

The push for e-transport comes as the country faces mounting pressure to modernize its public utility vehicle sector and reduce carbon emissions in its congested urban centers.

While the government has long promoted the Public Utility Vehicle Modernization Program, the high price tags of electric units compared to traditional internal combustion engines have remained a significant hurdle for the average driver. This ₱2 billion allocation represents a targeted effort to bridge that valuation gap through subsidized credit.

Digital accessibility is a core component of the rollout. SBCorp is bypassing traditional bank queues by requiring interested parties to apply through its mobile platform, the SBCorp Money app.

Starting Tuesday, April 21, 2026, the application portal will go live, allowing users to submit documentation and track their status via a dedicated E-Transport Loan interface.

The DTI and SBCorp are positioning the program as a dual-purpose tool for environmental sustainability and economic resilience. Beyond the capital injection, the agency is leveraging its network of Negosyo Centers and nationwide regional offices to provide technical assistance to applicants.

Further details on interest rates and specific vehicle eligibility are available on the state lender's official website as the government prepares for a surge in applications ahead of the Tuesday launch. (Dexter Barro II)