As an OFW, it’s reassuring to know that assistance will be on its way when you need it, such as when you’re experiencing employment-related issues and concerns while working abroad. The Overseas Workers Welfare Association (OWWA) also offers loan programs for qualified OFWs who want to start their own business, and this is the OFW-EDLP or OFW Enterprise Development and Loan program.
OFW-EDLP, formerly known as OFW-Reintegration Program (ORP), is an enterprise development intervention and loan facility offered by OWWA in collaboration with the Land Bank of the Philippines (LBP) and the Development Bank of the Philippines (DBP) to help OFWs and their families develop their businesses.
OWWA’s OFW-EDLP program provides loans to OFWs, whether they are about to retire or are still working abroad. This is done in collaboration with the Land Bank of the Philippines (LBP). This program requires a bit more effort than the OWWA Reintegration Program, but it allows you to borrow a larger amount.
OFWs must be eligible and provide the documents listed below to be eligible for the loan. OWWA will also require you to attend an orientation seminar called Enterprise Development Training (EDT). After accomplishing this training you will receive a certificate from OWWA, which is one of the document requirements in availing of the said program.
- For sole proprietors, the minimum loan amount is P100,000, and the maximum loan amount is P2,000,000.
- The minimum loan amount for Partnerships, Corporations, and Cooperatives: P100,000 Maximum loan amount: P5,000,000
- OFWs who are certified OWWA Members (Both Active and Non-Active)
- Must have completed EEDT or Enhance Entrepreneurial Development Training
- For OFWs who are still abroad, you may be represented by:
- Legal spouse (if married)
- Parents not older than 60 years old (if single, widow, widower, separated)
- Children who are at least 18 years old (if widow, widower, separated)
- Accomplished Application form
- 2 Valid IDs with signature
- Business Plan/Proposal (indication/showing that the proponent has an equity equivalent to at least 20% of the total project cost)
- Statement of Assets & Liabilities
- Sketch (Place of residence)
- Barangay Certification of Residency
- Proof of billing address
- Certificate of Entrepreneurial Development Training from OWWA
For applicants who already have existing business here are the requirements:
- DTI Certificate of Registration
- Mayor’s Permit
- Income Tax Return (if applicable)
- Financial Statements (if applicable)
- Latest Interim Financial Statement (if applicable)
Types of Businesses
Here are the eligible businesses for the loan:
- Agricultural and non-agricultural production/manufacturing
- Contract tie-up with top 1000 corporations
- Service/trading business
- Construction/rental business
- Transport service
- Or any viable project, new or existing
How to Process OWWA EDLP Loan Program for OFWs
In case you have made your decision to apply for the OFW EDLP, please follow the steps below on how you can sign up for this loan program.
STEP 1: Verification of OWWA Registration
For OFWs who are still working outside the Philippines
- Inquire about the OFW Reintegration Program with the Welfare Officer of the Embassy that covers your country of employment. Check out this list of POLO-OWWA offices abroad
- The Welfare Officer will confirm your registration as an OFW with OWWA.
- Following verification, the Embassy’s Welfare Officer will refer the OFW to an OWWA office in the Philippines.
- When the OFW returns to the Philippines, he or she must go to the OWWA office to obtain the certification.
- Landbank will be presented with this certification.
For OFWs who have already arrived in the Philippines:
- Go to your nearest OWWA office to confirm your program eligibility.
- If the OFW is eligible, a membership certification will be issued, which will be presented to Landbank for evaluation.
STEP 2: Enterprise Development Training
- An eligible OFW will be advised to attend the Enterprise Development Training (EDT) provided by OWWA, DTI, and Landbank in person.
- As part of the requirement, the OFW must present the certificate of attendance on the EDT to Landbank.
STEP 3: Preparation of Business Plan and other requirements
This includes all the documentation provided in the requirements list above. It is important to compile all the given requirements so you can present them properly and get a high chance of approval.
STEP 4: Processing Requirements Submission, Review, and Inspection
- Submit your business plan and other requirements for review to Landbank.
- Your business (if it already exists) will be inspected.
- Upon receipt of complete loan requirements, loan evaluation, packaging, and approval must be completed within 45 working days.
STEP 5: Loan Approval
- If the application is approved, Landbank will release the funds to the OFW.
Frequently Asked Questions
Please check out this FAQs about the EDLP loan application program:
1. Is the EDLP a financial grant from OWWA?
No, this is a loan program for those qualified OFWs to start their own business or do some expansion activities for their existing business.
2. How much is the interest rate then?
The interest rate of EDLP is at 7.5% per annum (per year) for the whole loan term.
3. How much will I get from this loan program?
The loan amount ranges from P100,000 to P5,000,000
4. Can I request a specific amount for my business?
No, the loan amount will depend on the needs of your project/business, so if you want to get a sufficient amount make sure to construct your business plan following your objective.
The EDLP program was established by OWWA, the government agency is tasked with developing and implementing programs to protect your rights as an OFW. OWWA is also reassuring that OFWs who will choose to stay in the Philippines after working abroad will get a better life.
If you join OWWA, you will be able to receive various forms of financial assistance as well as other OWWA benefits before, during, and after your overseas employment. Regardless of whether you are an active member or not, there is a chance for you to avail the EDLP. It’s not too late for you to start thinking about your future after being an OFW abroad. Nothing to worry about because you will still get a chance to live a better life in the Philippines while generating money from your own business.
Yes, availing of this program will require a lot of effort and preparation for the documentation, as well as the training you need to accomplish, but it will all be worth it in the future. Remember, it’s not just for you but your own family too.