The Department of Labor and Employment (DOLE) is hoping that more overseas Filipino workers (OFWs) would venture into entrepreneurship with the help of the government’s improved reintegration program.

In an article posted in the DOLE’s official website, Labor Secretary Rosalida Baldoz challenged OFWs to improve their lives by starting a business with the assistance of a loan from the national government’s P2-Billion OFW National Reintegration Program Fund.

Baldoz said, “We want our OFWs to be their own boss by investing on livelihood projects and considering entrepreneurial opportunities through the assistance of the government’s strengthened reintegration program."

With the welfare and protection of OFWs a priority of the administration of President Benigno S. Aquino III, our reintegration program ensures their socio-economic stability," she added.

The challenge was posed by the Labor Secretary because of an update report regarding the P2-Billion OFW National Reintegration Program Fund from the Overseas Workers Welfare Administration (OWWA). The said report highlights among other accomplishments the success of Nicasio Bolingkit, an OFW who used the loaned money availed from the reintegration fund to start a business.

The report states that Bolingkit was granted a loan amounting to Php800,000 and he invested this money to expand his dressed-chicken business, “Manukang Bayan Atbp”, in Zamboanga City.

The former OFW started his small business in 2010 with the belief that better and long term opportunities are available for returning OFWs in the Philippines. Bolingkit worked in the Saudi Arabia for 18 years.

Prior to the granting of loan and starting the business, Bolingkit attended the OWWA’s entrepreneurship development program and this is where he saw the feasibility of his chosen business. He borrowed the money and start the buisness.

The OFW turned businessman said, "Overseas employment is not permanent. It entails a lot of hardships and sacrifices in foreign lands. Darating ang panahon na uuwi rin tayo dito sa Pilipinas. Mabuti nang may pinaglaanan tayo sa ating pinaghirapan sa pakikipagsapalaran sa ibang bansa."

Baldoz reported that since the establishment of the loan fund in June 2011, Landbank of the Philippines, OWWA’s partner in the project approved 410 loan applications of 432 OFW beneficiaries. Baldoz said that according to the OWWA’s report, "The total loan amount has already reached P261,707,063.20."

Information about the OFW Reintegration Program (OFW-RP)
Taken from: OWWA Official Website

What is the OFW Reintegration Program (OFW RP - 2 Billion Reintegration Fund)?   

The OFW Reintegration Program (OFW-RP) is a special loan program of the Overseas Workers Welfare Administration (OWWA) in partnership with the Development Bank of the Philippines (DBP) and the Land Bank of the Philippines (LandBank).  It is intended to support enterprises development among OFWs and their families.

Who are eligible under the OFW-RP?

OFWs who have complied with the following requirements are eligible under the OFW-RP;  (1)  Active or former members of OWWA; and (2)  Completed the Entrepreneurial Development Training (EDT) conducted by NRCO and OWWA RWOs in cooperation with the Department of Trade and Industry / Philippine Trade Training Center (PTTC) / Bureau of Micro, Small and Medium Enterprise Development (BSMED).

What are the eligible projects under the OFW-RP?

Viable projects that will generate a net monthly income of not less that PHP 10,000.00 are eligible under OFW-RP.

How much is the loanable amount?

The loanable amount is from a minimum of PHP 300,000.00 to a maximum amount of PHP 2 million.

What is the interest rate?

The interest rate is 7.5% per annum, fixed for the term of the loan based on diminishing balance.

What are the schedules of loan repayment and loan maturity?

Monthly, quarterly, or annual payment depending on the project cash flow.  For short term loan, maturity is for a maximum of one (1) year.  For long term loan, the maturity is up to seven (7) years inclusive of two (2) year grace period on principal.

What is the project cost sharing of the OFW borrower?

The borrower's equity should be 20% of the total project cost.  Maximum loan is 80% of the total project cost.

What will the banks require for loan security purposes?

Banks will require the borrower to submit proof of confirmed market purchase / service order or a list of mortgageable assets, if any, for loan security purposes.

What are the basic documentary requirements that may be required by the bank from the borrower?

The following documentary requirements maybe required by the bank from the borrower:

1.      Bio-data of applicant;

2.      OWWA certification from OWWA-RWOs that the borrower is/was a bonafide member of OWWA and has completed the EDT at the NRCO or at OWWA-RWOs;

3.      Business plan;

4.      Statement of Assets and Liabilities

a)     For Start-Up Business

(1)  Certificate of Registration from DTI

(2)   Mayor's permit

b)          For Existing Business

Certificate of Registration from DTI

(1)     Mayor's permit

(2)  Income Tax Return, if applicable, (for the last 3 years)

(3)  Financial Statements, if applicable, (last 3 years, BIR filed)

(4)  Latest Interim Financial Statement

Where does an interested OFW borrower proceed to avail of the OFW-RP? 

Interested OFW borrowers should proceed first to the nearest OWWA-Regional Welfare Offices to attend orientation on the program and for certification of their OWWA membership and Entrepreneurial Development Training (EDT) completed.