How to finance and start a new business.
Need money to finance your business or start a new enterprise?

Enterpreneurs, exporters, manufacturers and livelihood cooperatives can avail of more than 50 financing programs which offer loans ranging from P250,000 to P100 million. These loans carry soft-term rates and are intended to provide capital to business.

The Department of Trade and Industry (DTI) implements 5 financing programs for community based organizations, manufacturers, non-governmental organizations (NGO's), exporters and subcontractors.

These are the Micro Enterprised Development program (MEDP), Micro-Credit Project locally funded, Country wide Industrialization Fund, Tulong Sa Tao-NGO-Micro Credit programs, and the TST sub-contracting financing program.

The Micro Enterprise Development program supports the President's call for continiuous implementation of poverty alleviation measures for the poorer sector of the population. The P250,000 loan can be used to purchase equipment and as a working capital.

The Tulong sa Tao-NGO-Micro Credit project recognizes NGOs as effective intermediaries of credit, skills and organizational assistance to low income groups in the rural areas. It was designed to address the needs of existing and potential micro entrepreneurs of financial and technical assistance.

The TST Subcontractors financing program provides a package of assistance to subcontractors to make them bigger and graduate as manufacturers themselves. The facility extends P3 million loans for subcontractor.

The Development Bank of the Philippines (DBP) has 14 financing facility including the Export Development financing program, Industrial Pollution Control Loan project; KFW-Long Term Export Financing facility, Omnibus Financing program for New Entrepreneurs, Environmental Infrastructure Support Credit program, Small and Medium Enterprises re-Lending program and the Countryside Loan fund.

Others are the Industrial Investment Credit project, Industrial Loan Guarantee Fund, the $50 million loan from the International Commercial Bank of China, Industrial and Support Services Expansion program, Overseas Economic Cooperation program, the DBP-Asian Devlopment Bank III and the Tulong sa Exporters Phase I.

The DBP Export Development Financing program aims to provide comprehensive financial support to direct exporters, export traders and trade associations.

The Omnibus financing programs for New Entrepreneurs extend loans for land acquisition, building construciton, machinery and equipment acquisition.

The Bangko Sentral ng Pilipinas (BSP) has a Rediscounting facility and an Exporters Dollar facility. Target beneficiaries are exporters of non-traditional products.

Manila Bulletin. Business, Information Technology, July 19, 1998


Hari Srinivas - hsrinivas@gdrc.org
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