The Department of Science and Technology reminds OFWs to take advantage of their livelihood program that may provide up to Php 250,000 of seed funding for the business that they plan to run in the Philippines.
DOST’s incumbent Sec. Fortunato de la Peña stated that these loans are interest-free and are repayable in three years. He highlighted that business ideas should have a special emphasis on livelihood projects with some technological component, such as food processing and metal works, in which the agency has a solid track record and provides strong technical and advisory assistance.
“Our funding for OFW livelihood is limited, but it’s inclusive and it is open to all interested OFWs even to those who have not yet returned home,” said de la Peña in an interview with The Manila Bulletin.
Start-up livelihood initiatives are encouraged, and proponents will be thoroughly taught for up to six months or longer on how to become entrepreneurs and run firms. Officers from partner firms and non-governmental organisations with real-world business expertise will give extensive training and mentorship.
The DOST programme does have one minor downside in that the amount of loan offered to grantees must be matched with counterpart financing supplied by the project proponent.
Even with sovereign or government borrowings, requiring counterpart money is not an unusual practise. The Philippine government is required by lenders to provide counterpart funding in various infrastructure and large-scale development projects funded by the World Bank and other foreign institutions.
DOST appears to be simply employing this lending method and philosophy, despite the fact that most ambitious OFW companies are likely to obtain practically all of their operating capital through government loans or subsidies.
Find out the full details of the grant here: MEMORANDUM CIRCULAR NO. 002 – GUIDELINES ON THE IMPLEMENTATION OF THE INNOVATIONS FOR FILIPINOS WORKING DISTANTLY FROM THE PHILIPPINES (IFWD PH) PROGRAM
