OWWA Business Loan is a program designed for both current and former Overseas Filipino Workers (OFWs). These programs are one of the many proactive responses extended by the Philippine government to neutralize the negative effects of pandemic especially to OFWs who are considered to be modern-day heroes.
It cannot be denied that this pandemic has adversely affected them particularly those employed in different companies abroad which needed to minimize their workforce as a result of low demand for their services.
Thus, many of our OFWs were retrenched and returned to the country with little savings. As such, the Overseas Workers Welfare Administration (OWWA) spearheaded the launch of these OWWA business loan programs to help our OFWs get along with the challenges brought by the pandemic.
There are two major OWWA business loan programs that OFWs may avail of, namely: (1) Balik Pinas! Balik-Hanapbuhay Program and (2) Overseas Filipino Worker – Enterprise Development and Loan Program (OFW- EDLP). Both loan programs are intended for OFWs who wish to establish a business of their own choosing here in the Philippines. It is a fact that a business, regardless of its size, augments one’s income. It is also a good investment for OFWs who still want to stay in the country for good after saving money through working abroad.
Documentary Requirements Needed for OFWs
It is to be noted, however, that there are documentary requirements that OFWs have to submit to avail any of these programs. Further, Balik Pinas! Balik Hanapbuhay Program and Overseas Filipino Worker – Enterprise Development and Loan Program offer different livelihood and financial packages.
Balik Pinas! Balik Hanapbuhay Program is a livelihood assistance package suited for OFWs who wish to establish a business, belonging either to agricultural or non-agricultural industry. This program entitles an OFW to cash assistance amounting to PHP 20,000.00. The following are the requirements to avail this program:
Application Form. This can be downloaded from the OWWA website.
Certificate in Entrepreneurial Development Training. This is issued upon attendance and completion of training facilitated by a government agency like Department of Agriculture for agriculture-related businesses and the Department of Trade and Industry for non-agriculture-related businesses.
Business plan or proposal. This must be approved by the OWWA Regional Director of your province.
Proof of Repatriation or Return to the Philippines
On the other hand, for OFWs who wish to establish a business that needs a huge capital, they can avail of the Overseas Filipino Worker – Enterprise Development and Loan Program (OFW- EDLP). The assistance being offered by this OWWA business loan program depends on the structure of business OFWs want to establish. For single proprietorship, they may borrow from PHP 100, 000 up to PHP 2,000,000 while for partnerships, corporations, or cooperative, OFWs may borrow from PHP 100,000 up to PHP 5,000,000. However, the loan is subject to 7.5 % annual interest.
Qualifications and Documentary Requirements
The following are the qualifications and documentary requirements to avail the Overseas Filipino Worker – Enterprise Development and Loan Program (OFW-EDLP):
Applicants must be an OWWA member, either active or non-active.
They must undergo an enhanced entrepreneurial development training.
They must prepare a business plan.With these OWWA business loan programs, it is hoped that OFWs may survive in this pandemic