PHILIPPINES – The Department of Trade and Industry (DTI) has rolled out a new loan scheme worth ₱4 billion targeting MSMEs. The financing scheme provides collateral-free loans worth up to ₱5 million that can aid small companies in coping with the economic difficulties caused by the Middle East crisis and the consequent energy crisis in the country.

Trade Secretary Ma. Cristina Roque announced the MSME Business Fund during its ceremonial launch at the DTI office in Makati City, urging entrepreneurs to take advantage of the program’s flexible terms, which include a one‑year grace period on both principal and interest payments.

A lifeline for small businesses

“Ang loan po na ito ay no collateral po up to five million pesos, and one year po no payment of principal and interest. So this one year po is enough time for the businesses to actually move forward,” Roque said, emphasizing that the initiative is part of a whole‑of‑government approach to support MSMEs under President Ferdinand R. Marcos Jr..

The loan program targets enterprises facing rising logistics costs, supply chain disruptions, and cash flow pressures—challenges that have been exacerbated by the state of national energy emergency declared through Executive Order 110 on March 24, 2026. According to business groups, MSMEs are the most vulnerable to prolonged energy shocks, as they comprise about 1.2 million enterprises nationwide.

Loan terms and requirements

Under this scheme, eligible borrowers can avail of financing facilities ranging between ₱30,000 and ₱20 million. If the total loan requested is within ₱5 million, then no collateral is needed. The tenure period can be as long as five years. Moreover, applicants meeting the requirements will receive a grace period of 12 months from the time payments will be due.

Documentary requirements include a valid government‑issued ID, mayor’s business permit or business registration, proof of bank account, and photographs of the business premises. The processing time is estimated at seven to 10 days once all requirements are complete.

How to apply

MSMEs can file applications online through the Small Business Corporation (SB Corp.) website at sbcorp.gov.ph or through any DTI regional office and Negosyo Center nationwide. SB Corp., the DTI’s financing arm, administers the fund through a streamlined online system.

Early demand for the facility has been strong. As of April 13, SB Corp. had already received 1,820 applications worth approximately ₱3.2 billion, reflecting urgent financing needs among small businesses.

Replenishment and other programs

Roque said the DTI may replenish the fund before year‑end if fully availed. “We’ll try to really get more funding for this,” she told reporters.

The department is also expanding other financing initiatives, including a ₱2‑billion fund for returning overseas Filipino workers and a ₱2‑billion Women’s Enterprise Fund, which carry similar loan terms. Both programs have already drawn hundreds of applicants.

Call to action

Roque urged MSMEs to seize the opportunity, emphasizing that access to capital is essential for long‑term growth and resilience. “They can really use this fund to really drive the business or to move forward also,” she said.

The DTI provides application assistance through its 18 regional offices and a network of more than 1,300 Negosyo Centers across the country.