DTI, LandBank deal open MSME financing

The Department of Trade and Industry (DTI) and the Land Bank of the Philippines (LandBank) recently sealed a memorandum of agreement (MoA) to launch the LandBank Innovative Financing Thrust Towards Inclusive National Growth through MSMEs (LIFTING MSMEs) lending program.

The scheme aims to provide accessible, tailored financial solutions for micro, small and medium-sized entrepreneurs (MSMEs).

According to the DTI, the program aims to empower MSMEs by expanding access to credit and promoting inclusive economic development through financing options.

Different financing packages are offered to businesses at various stages. Newly established businesses (start-ups) can borrow P100,000 to P500,000, while the loanable amount for growing businesses ranges from P500,000 to P5 million.

Expanding enterprises can borrow up to P50 million.

The loan packages offer flexible payment terms and collateral options, including real estate mortgages and credit guarantees.

Financial literacy promoted

Aside from capital infusion, LandBank commits to expanding financial literacy, entrepreneurship, and business development training for borrowers and to promoting the use of digital onboarding and financial technology solutions.

DTI will complement the capital injection by delivering entrepreneurship, digital marketing, and product development training through its Negosyo Centers.

It will also play a crucial role in identifying and promoting qualified MSMEs for financing, with a focus on women-led enterprises, young entrepreneurs, market vendors, and franchising ventures.

Trade Secretary Cristina Roque highlighted the program’s significance, stating that its very name, “LIFTING,” directly describes their goal, “to lift, to empower, and to open doors for the backbone of our economy, our beloved MSMEs.”

She stressed that financing remains the “biggest hurdle” for many, and this program is designed to remove that barrier, “giving entrepreneurs the breathing room to innovate, hire more people, and strengthen their operations.”