The government is opening a new low-interest, collateral-free loan facility aimed at helping returning overseas Filipino workers (OFWs) rebuild their lives, with Overseas Workers Welfare Administration (OWWA) Administrator PY Caunan and Small Business Corporation (SBCorp) vice president Wally Calderon outlining the program’s mechanics and safeguards.

Speaking on DAILY TRIBUNE’s digital show Usapang OFW, Caunan described the initiative as a crucial addition to the government’s reintegration efforts by providing returning workers easier access to capital.

“OWWA gives a one-time grant, not a loan. But in business, you always need access to credit or financing,” Caunan said, referring to the government’s Balik-Pinas, Balik-Hanapbuhay program and the newly funded Alagang OWWA assistance.

According to OWWA, more than 11,000 OFWs have recently returned home with depleted savings, disrupted contracts, and families relying on them for support.

The new OFW Negosyo Fund, a partnership among the Department of Migrant Workers, Department of Trade and Industry, and SBCorp, aims to simplify access to financing for returning workers seeking to start or expand businesses.

“Once an OFW, always an OFW. The important thing is the purpose of the loan. It must be for business,” Caunan said.

She emphasized that the loan facility is intended to complement, not replace, existing livelihood grants.

“We strengthen their grant. SBCorp strengthens their access to capital. That’s complementary,” she said.

Calderon explained that SBCorp has relaxed some requirements to accommodate returning migrant workers.

“This is unique. We can lend even if the business is newly registered,” he said. “They just use the SBCorp money app completely online.”

Loan amounts range from P30,000 to P20 million, with no collateral required for loans of up to P3 million. Interest is set at one percent per month, or 6.7 percent annually.

Calderon said loan applications are evaluated through machine-learning technology, allowing faster processing.

“In a matter of seconds or minutes, as long as the requirements are complete,” he said.

Beyond the loan program, Caunan said OWWA is preparing an expanded reintegration package that includes scholarship opportunities for OFWs who did not finish college and to obtain enhanced skills training through TESDA.

“We want comprehensive support, training that leads to employment, and help so OFWs can focus while they upskill,” she said.

“If they want to start a business, this is a good program for them,” Caunan added.