Starting a business young often means starting with little or no money.
To bridge that gap, the Department of Trade and Industry (DTI) has rolled out a new loan facility that will help aspiring entrepreneurs secure startup capital at an early stage, when financing is often the hardest to obtain.
Under the Youth Enterprise Fund of Small Business Corp. (SBCorp), the DTI’s financing arm, entrepreneurs aged 18 to 30 may avail of loans ranging from P30,000 to P500,000, payable over a maximum of three years.
Borrowers may also choose a grace period of up to 12 months before repayment begins.
Trade Secretary Cristina Roque says the program was designed for young Filipinos who may be brimming with business ideas but have limited access to financing.
‘Through the Youth Enterprise Fund, we are removing financial barriers so our youth can turn their vision into thriving businesses that not only succeed, but also generate quality jobs and uplift their local communities,’ Roque says.
To make the program more accessible, the DTI has also streamlined the application process. Applicants need only submit a government-issued ID, a mayor’s permit, proof of a bank account, a business plan and corporate registration documents.
Applications will open on July 27.
SMEs going global
Beyond helping young entrepreneurs launch businesses, the DTI is also stepping up efforts to strengthen the country’s micro, small and medium enterprises, which account for more than 99 percent of all business establishments and employ more than 60 percent of the Philippine workforce.
SBCorp. also offers financing programs for exporters, women entrepreneurs and electric vehicle drivers, among others.
More recently, the DTI, together with the Department of Finance, the World Bank and Germany’s KfW Development Bank, advanced preparations for the SME Compete+ Project, a flagship initiative aimed at helping small and medium enterprises become more productive, competitive and export-ready.
This program seeks to help enterprises meet international quality standards, adopt new technologies, improve access to financing and strengthen their links to domestic and global value chains.
It will also provide advisory services, matching grants, supplier and exporter upgrading programs, investments in quality infrastructure and digital platforms to help businesses meet certification requirements, comply with international standards, expand market access and secure financing.
‘The extensive work that has gone into its design gives us confidence that this initiative can significantly accelerate the growth of Philippine exports and strengthen the competitiveness of our enterprises,’ Roque says.