The OFW Enterprise Development and Loan Program (OFW EDLP) is an enterprise development intervention offered by the Overseas Workers Welfare Administration (OWWA), in coordination with the Development Bank of the Philippines (DBP) and Land Bank of the Philippines (LBP).
Previously known as P2B OFW Reintegration Program, the OEDLP program aims to encourage OFWs and their families to start their own businesses, as an alternative to overseas employment. Aside from creating a steady income stream, it also creates job opportunities in the OFWs’ communities.
OFW Enterprise Development and Loan Program
The OEDLP program is comprised of two main components: (a) enterprise development interventions; and (b) a loan facility.
Enterprise Development Interventions
Basically, enterprise development interventions cover activities related to starting a business: entrepreneurial skills self-assessment, business appreciation seminars, business plan preparation, etc. These also include various referrals: (a) referrals to individuals/institutions for immersion; and (b) referrals to partner institutions for project-specific skills training.
In particular, applicants must undergo the Enhanced Enterprise Development Training (EEDT), a comprehensive training module that seeks to prepare OFWs regarding every aspect of running a business.
Loan Facility
After completing the EEDT, applicants may avail of the program’s loan facility. The minimum loanable amount is PHP 100,000 up to a maximum of PHP 2 million for individual borrowers (single proprietorship), and up to a maximum of PHP 5 million for a group loan (cooperative, corporation, or partnership). Meanwhile, the interest rate is 7.5 percent per annum, which is fixed for the duration of the loan.
Eligibility
The eligibility criteria vary for individual OFWs and groups of OFWs.
Individual OFWs
Individual borrowers include active or inactive certified OWWA members who:
- Are currently employed abroad;
- Have applied for the program not later than three (3) years from the time of return to the Philippines, except in cases where applicants already have an ongoing business before the time of application; and
- Have completed the EEDT.
NOTE: For applicants with existing businesses, the respective OWWA offices will determine whether or not they still need to complete the EEDT.
Groups of OFWs
The group loan may be availed by groups of OFWs:
- Who have formed themselves into a business entity (i.e. partnership, cooperative, or corporation);
- Who have at least three (3) years track record of profitable operations; and
- Wherein all partners, stockholders, directors, officers, and members are OFWs who are certified OWWA members, and have completed the EEDT.
Requirements
The general requirements when applying for the OEDLP program are the following:
- Business Plan;
- Statement of Assets and Liabilities;
- Barangay Certification (as proof of residency);
- Proof of Billing Address; and
- OWWA Bonafide Certification.
How to Sign Up
For more information, interested applicants are urged to visit the OWWA official website. They may also visit the nearest LBP Lending Center, or send an inquiry via email to ofwrp@landbank.com.
As an alternative to overseas employment, establishing a business would be a wise move for OFWs and their families. Not only will they be able to earn additional income, but also create employment opportunities for people in their communities.
Aside from LBP and DBP, there’s another bank that provides financial services to OFWs. Read this article to know more about the Overseas Filipino Bank (OFBank).