Gov't launches P2 billion loan program for OFWs

 

By Jovan Cerda

 

The government has set aside a total of P2 billion for a program aimed at helping returning overseas Filipino workers (OFW) set up their own businesses in the country.
The 2 Billion Pesos Reintegration Program, launched on Tuesday at the first National Congress of OFWs and Families, is a joint venture of the Department of Labor and Employment (DOLE), Overseas Workers Welfare Administration (OWWA), Land Bank of the Philippines (LBP) and the Development Bank of the Philippines.
“The program offers different enterprises flexible and easy loan term payments for its OFW availees,” OWWA said in a statement.
The state agency added that the loan program is in support of the president’s desire to give sustainable business to the OFWs and their families.

“The national reintegration program answers his (Pres. Benigno Aquino’s) order for our workers to stay here,” OWWA Administrator Carmelita Dimzon said in a press conference. Thousands of OFWs have recently returned to the Philippines after a series of civil unrest and violent protests in the Middle East.
Through the program, LBP helps interested returning OFWs in coming up with a business feasibility study before approving a loan with a minimum amount of P300,000.
“In this loan program, the collateral is not needed… repayment will be based on the cash flow of your business but will not exceed seven years inclusive of a two-year grace period,” Labor Undersecretary Danilo Cruz said.
He added that the loan, with an interest rate of 7.5%, covers both working capital and fixed assets. The state will shoulder 80% of the capital while the remaining 20% will be shouldered by those who avail of the loan.
However, those who cannot shoulder the 20% capital and cannot afford the loan can still venture in small enterprises through livelihood starter kits OWWA offers, Labor Sec. Rosalinda Baldoz said.
“All of these options are offered and it’s up to them (OFWs) which businesses they want to venture in. If they like a business and they need help, we are here to help them,” she said.
Dimzon said 11 loans have already been approved with P2 million being the highest amount approved as of late.
Cruz said the government agencies offering the loan have yet to estimate the maximum number of returning migrant workers availing of the program, but it will all depend on how the repayment turns out.
“If this will be a successful livelihood program, OWWA still has funds to expand the program,” he said.