Overseas Filipino Workers

Reintegration Program
DBP Financing Program for
Overseas Filipino Workers

Presentation for the Diaspora to Development: A Global

Summit of Filipinos in the Diaspora
Overseas Filipino Workers Reintegration Program

OUTLINE OF PRESENTATION

RATIONALE

PROGRAM OBJECTIVES

PROGRAM FEATURES

DOCUMENTARY REQUIREMENTS

LOAN PROCESS
Overseas Filipino Workers Reintegration Program

RATIONALE & THEMATIC AREAS

Remittance for Development: Harness the potentials of remittances

to catalyze the creation of local businesses in the communities of
origin of OFWs, and in rural undeveloped areas;

Enterprise Development: Facilitate wealth creation by supporting

high-potential start-up and profitable existing small and medium
enterprises owned and/or operated by OFWs and their families;

Jobs Creation: Catalyze local economic development by encouraging

OFW investments in highly profitable, labor intensive and
environmentally-responsible investments;

Poverty Reduction: Contribute in efforts to reduce poverty through

entrepreneurial activities.
Overseas Filipino Workers Reintegration Program

PROGRAM OBJECTIVES

1. Facilitate opportunities for entrepreneurial OFWs to

pursue enterprise/business ventures, and reduce their
dependence on foreign wage employment
2. Make available credit and supporting enterprise
development services for their various business
ventures
3. Contribute to the asset build-up of OFWs via savings,
capital assets acquisition, human capital development,
and prudent investments
4. Ensure OFW-investors access to business development
services to be provided as a credit support component
of EDPO.
PROGRAM FEATURES
Eligible Borrowers Qualified Purposes
Overseas Filipino Workers Construction/ renovation/
OWWA members expansion/ repair of
With existing or completed building for use as business
employment contracts site
Only one OFW per family (i.e.
husband, wife and children)
Provision of working capital
shall be eligible under the for business venture (short-
program. term and/ or permanent)
Completed the Acquisition of equipment
Entrepreneurial Development Production loan for
Training for OFWs and similar
Confirmed Purchase Order
interventions initiated and/or
recognized by the DOLE and Other related project cost
OWWA. (excluding land acquisition)
OFWs may be represented by
immediate family members,
(1st degree of consanguinity
and affinity) with Special
Power of Attorney
PRIORITY INVESTMENTS/INDUSTRIES

Franchising

Agribusiness
and related
Tourism and businesses
related
industries Industry
Focus

Other Healthcare
Supported and allied
Projects industries
PROGRAM FEATURES

Interest Rate:
Prevailing rate, starts at: 7.5%
per annum (0.625%/mo) fixed
throughout the term of the loan
Loan Amounts
Minimum: P300,000.00
Maximum: P2,000,000.00

Based on the type of

projects and/ or clients
borrowing capacity, but
DOFWRP Credit not to exceed 80% of the
Total Project Cost
Facility
Php 1.0 Billion
PROGRAM FEATURES
Loan Maturity and
Grace Period
Based on cash flow, but
not to exceed seven (7)
years, inclusive of 2 years
grace period on principal
repayments
Availability Period
Approved projects: Available
up to 6 months from date of
perfection of loan documents
Loan Repayment
Payment of loan through the
following:
Telegraphic transfer/
remittance to OFW savings
account with DBP
Over-the-counter payments
through the DBP Branches
Availability Period
The DOFWRP is available for 5
years, starting June 2011 up to
June 2016, subject to quarterly
and annual review
PROGRAM FEATURES
Security Provisions
Opening of savings account
with the nearest DBP branch
with an average daily
balance equivalent to 1.5%
Documentation Period
of the outstanding
Documents shall be completed
principal balance shall be
within 90 days from date of Notice
maintained in the account of Approval. Extension allowed
once the loan has been subject to payment of 0.125% p.a.
disbursed extension fee
Security arrangements
acceptable to DBP (e.g. Real
Estate Mortgage, Chattel
Mortgage, Purchase Order
and other forms of security
acceptable to DBP)
PROGRAM FEATURES

Documentary Requirements (If Applicable)

Application Form (DBP Form)
Proof of OWWA Membership
Business Registration Certificate (from DTI/ SEC/ CDA/ DOLE)
Business Permit (from Local Government Units)
Business Plan (DBP Form)
Income Tax Returns for the past three (3) years
Financial Statements for the last three (3) years
Statement of Assets, Liabilities and Net worth of Principal
Borrower/s
Bank statement for at least 3 months
By-Laws & Articles of Incorporation/ Cooperation
Board Resolution & Secretarys Certificate authorizing the loan,
indicating the authorized signatories
Other required documents
PROGRAM FEATURES

Additional Documentary Requirements (If Applicable)

Real Estate/ Security
Two copies of Location Map/ Vicinity Map
Two copies of Transfer Certificate of Title/ Original
Certificate of Title
Latest Real Estate Tax Declaration and Tax Receipt

Chattel Mortgage
Affidavit of Ownership & Certificate of Non-Encumbrance
with Specification
Supplies Quotations complete with technical
specifications, for machinery and equipment
Contract to Sell, for machinery and equipment to be
acquired
Copy of OR/ CR for transportation equipment
PROGRAM FEATURES

Additional Documentary Requirements (If Applicable)

Building to be Constructed
Bill of Materials and Cost Estimates
Building Plan and Specifications
Building Permit, to be submitted before construction
Overseas Filipino Workers Reintegration Program

LOAN PROCESS
OFW Borrower DBP

Start

Branch receives LOI;

Files Letter of Intent assigns project to AO

Receives request;
Request for basic info and
prepares required Documentary Requirements
materials (e.g. Loan application
documents, Collateral
documents

A
Overseas Filipino Workers Reintegration Program

PROGRAM FEATURES
OFW Borrower DBP

Receives and pre-qualifies

Submits requirements for credit

No Complete

Yes

B
Overseas Filipino Workers Reintegration Program

PROGRAM FEATURES
OFW Borrower DBP

Conducts the following:

Ocular inspection/ validation of
project cost
Credit/ Background
Investigations
Technical Evaluation
CA Preparation

Endorses Credit Application

C
Overseas Filipino Workers Reintegration Program

PROGRAM FEATURES
OFW Borrower DBP

Deliberates loan

Borrower receives No Qualified

Denial of Application

Yes
Approves loan

D
Overseas Filipino Workers Reintegration Program

PROGRAM FEATURES
OFW Borrower DBP

Pays the necessary fees Documents loan

Receives loan and

utilizes loan Effects Loan Release
for the proposed project

E
Overseas Filipino Workers Reintegration Program

PROGRAM FEATURES
OFW Borrower DBP

Receives Billing
Issues Billing Statement
statement

Accepts payment and

Pays loan amortization
Issues O.R.

End
The DBP-OFWRP is available in DBP
Branches all over the country.

For additional information, you may also

contact:
Aldwin Christian B. Yam
acbyam@dbp.ph

Leopoldo A. Resmundo, Jr.

ljaresmundo@dbp.ph

Telephone Numbers
(02) 812-5703; (02) 818-9511 local 2332

Program Development II
Development Bank of the Philippines
3rd Floor, DBP Head Office,
Sen Gil Puyat Ave., cor. Makati Ave., Makati City
 THANK YOU

Overseas Filipino Workers Reintegration Program