OFW Non-collateral Business Loan details, joint venture of DOLE, OWWA, LBP and DBP

DOLE Sec Rosalinda Dimapilis-Baldoz hands cheque
to availee of the 2 Billion Pesos OFW Reintegration Program
Image Credit: owwa.gov.ph

Due to a lot of inquiries about my previous post on DBP-OFW Reintegration Program loan facility, I hereby made further research on important credible discussions and details about the said program which was launched last June 7, 2011 during the celebration of the Migrant’s Workers Day and the conduct of the First National Congress of OFWs and Families in Pasay City, which aims to provide OFWs an alternative to overseas employment.

According to the Official Gazette of the Republic of the Philippines, the Department of Labor and Employment (DOLE) explained that overseas Filipino workers (OFWs) who are interested to start or expand an existing business enterprise may avail the said loan assistance under the P2-billion reintegration program without collateral as long as the business they want to put or expand remains viable and profitable.

This 2-billion reintegration program loan fund is revealed as a joint venture of the DOLE, Overseas Workers Welfare Administration (OWWA), Land Bank of the Philippines (LBP), and the Development Bank of the Philippines (DBP).

As report further attests, OWWA provided P1 billion while LBP and DBP gave P500 million each for a total of P2 billion to the reintegration fund. Similarly, involved agencies, including the National Reintegration Center for OFWs (NRCO) signed the Memorandum of Understanding last May 31, 2011 providing for their partnership and collaboration in the implementation of the program.

Vivian Tornea, Executive Director of NRCO issued the explanation following queries from OFWs on whether they need to provide collateral to avail of loan assistance under the said program.

In a reported press release by DOLE as of July 2, 2011, Tornea was quoted in a statement saying, “OFWs with existing business or those who want to start any business or livelihood project may apply for loan assistance of up to P2 billion under the P2-billion reintegration program without collateral as long as they can guarantee that the business enterprise they want to put up or expand is viable and profitable, or earning, say, like P10,000 a month.”

She further added that interested OFWs must submit business plans in applying for reintegration loan assistance at the OWWA regional offices, adding that the absence of collateral is not an impediment in their application.

She stressed, however, that the OWWA will closely scrutinize the OFW’s business proposals that should show proof of the viability of their business or livelihood projects like market or purchase orders in line with the Reintegration Program’s aim of helping OFWs find sustainable alternatives to overseas employment.

“The program aims to ensure that the OFW’s business or livelihood is sustainable not only in supporting the needs of their family but also in enabling them to generate jobs and contribute to community development so that they will no longer go back to their jobs abroad,” Tornea finally said.

The reintegration program will support viable businesses of OFWs especially in agribusiness, tourism, education, and healthcare.

Interested OFWs are advised to undergo a Reintegration Seminar, an orientation on financial and business management, various business and income generating livelihood undertakings, and other pertinent information they will need in setting up and sustaining a business enterprise, at the NRCO, Blas F. Ople Development Center, cor. Solana and Victoria Sts., Intramuros, Manila.

For further details, OFWs may contact:

NRCO Executive Director Vivian Tornea at Tel No. (632) 527-6184 and (632) 526-26-33; or email at nrcodole@yahoo.com