Business challenges often result in unstable cash flow and income losses. Because of this, businesses implement adaptive business measures, like reducing costs and diversifying products and services.
The government also provides financial assistance through DTI loans for small business owners. These are collateral-free and interest-free loans to micro, small, and medium enterprises (MSMEs) in the Philippines.
In this article, learn how these loans work, the requirements for DTI loans for small businesses, and how you can avail of these loans.
DTI Loans for Small Businesses in the Philippines
The Department of Trade and Industry (DTI) and Small Business Corp. (SBC)’s Pondo sa Pagbabago at Pag-Asenso, also known as the P3 Program, was first launched in 2017, aiming to empower micro-entrepreneurs.
Meanwhile, the Resilient, Innovative, Sustainable Enterprises, Unleash Your Powers with SB Corp (RISE UP Program) targets entrepreneurs striving to get back on their feet after the pandemic. It replaced the COVID-19 Assistance to Restart Enterprises (CARES) Program.
The P3 and RISE UP programs are quite similar, but the latter specifically accommodates those whose businesses were affected by the pandemic. Keep reading to know more about these DTI loans for small businesses and if you should apply for them.
Read more: Startup Business Loans: An Entrepreneur’s Comprehensive Guide
📌 DTI P3 Program
The P3 program aims to discourage underprivileged business owners from borrowing money from loan sharks.[1] The DTI partnered with SBC to provide loans to customers from the country’s top 30 poorest provinces. More than 250 microfinancing institutions (MFIs) are accredited by SBC to assist in distributing the P3 funds to micro-entrepreneurs.
How Much Can You Loan from the P3 Program?
You can borrow from ₱5,000 to ₱200,000 with a monthly interest rate of 2.5%. There’s also no charge for the loan process.
DTI P3 Loan Requirements
To apply for a loan through the P3 program, you must fulfill the following DTI loan application requirements:
- Self-employed or micro-entrepreneur with a legitimate business running for at least one year
- Valid government-issued ID
- Barangay Clearance issued in the past three months
- Proof of small enterprise activity for at least one year
- Proof of one-year residence
- ID picture
- Accomplished DTI P3 loan application form
- DTI Business Name Registration Certificate for loans over ₱50,000
Make sure to prepare these documents before you fill out the DTI P3 loan online application form on the SBC-BRS (Borrower Registration System) website.
📌 RISE UP Program
Another DTI small business loan option is under the RISE UP Program. It offers two kinds of loans: the Multi-Purpose Loan for all enterprises and the Tindahan Loan for sari-sari and grocery stores.
👉 RISE UP Multi-Purpose Loan
There are three types of multi-purpose loans depending on what type of borrower you are:
Micro Multi-Purpose Loan (for multi-sectoral microenterprise)
- Loan amount: Up to ₱300,000
- Loan term: Up to three years (with a grace period of up to 12 months)
- Interest rate: 12% p.a. based on diminishing balance (exclusive of DST)
- Requirements:
- Business track record of at least one year
- For loans > ₱100,000: Barangay Certification
- For loans < ₱100,000: BMBE Certificate/Mayor’s Permit
- Government-issued ID
- Photos/videos of business operations and assets
- Other corporate documents, if applicable
Read more: Business Permit in the Philippines: Guide to Application, Requirements, and Fees
SME Multi-Purpose Loan First Timers (for multi-sectoral SMEs and first-time borrowers)
- Loan amount: Up to ₱3 million
- Loan term: Up to three years (with a grace period of up to 12 months)
- Interest rate: 12% p.a. based on diminishing balance (exclusive of DST)
- Requirements:
- Valid BMBE Certificate/Mayor’s Permit
- BIR-filed Financial Statement for the prior year and previous year reflecting positive net income
- Other corporate documents and proof of sales/assets
- Photos of assets and business operations
- Government-issued ID
SME Multi-Purpose Suki Loan (for existing SBCorp borrowers in good standing with a repayment track record of at least six months)
- Loan amount: Up to ₱5 million (and up to ₱10 million for REM-secured loans)
- Loan term: Up to five years (with a grace period of up to 12 months)
- Interest rate: 8% to 12% p.a. based on diminishing balance (exclusive of DST)
- Requirements:
- Proof of sales (including bank statements)
- In-house or BIR-filed Financial Statements (FS) for loans exceeding ₱3 million
- Proof of ownership and government valuation of real estate assets to secure the loan
- Proof of Value of Asset (for fixed asset acquisition)
👉 RISE UP Tindahan
This DTI loan program has two types: the Micro and the SME Tindahan Loan. It’s a great option if you’re a sari-sari or retail store owner or a dealer and distributor of RISE UP’s partner FMCGs.
Micro Tindahan Loan (for sari-sari stores with FMCG accreditation)
- Loan amount: Up to ₱300,000
- Loan term: Up to three years (with a grace period of up to 12 months)
- Interest rate: 10% p.a. based on diminishing balance (exclusive of DST)
- Requirements:
- Government-issued ID
- Barangay Business Permit (for loans up to ₱100,000)
- BMBE Certificate/Mayor’s Permit (for loans < ₱100,000)
- Photos/videos of business operations and assets
- Other corporate documents, if applicable
- FMCG Reference Number
- Business track record with FMCG of at least one year
SME Tindahan Loan (for retail stores, dealers, and distributors with FMCG accreditation
- Loan amount: Up to ₱5 million
- Loan term: Up to three years (with a grace period of up to 12 months)
- Interest rate: 8% p.a. based on diminishing balance (exclusive of DST)
- Requirements:
- Business track record with FMCG of at least one year (at least three years for loans above ₱1 million)
- Government-issued ID
- Mayor’s Permit
- Other corporate documents, if applicable
- FMCG Accreditation Number
- Proof of Asset Size not exceeding ₱100 million
- Photos/videos of business operations and assets
💼 Launch or Expand Your Small Business With an #UNOnow Loan
_1200x350.png?width=734&height=214&name=UNOBank_Loan_-_Business_(Sep_2023)_1200x350.png)
Ready to start or grow your small business? If you're planning to secure funds to buy inventory, pay for a bigger space, or hire employees, check out what UNO Digital Bank has to offer.
With an #UNOnow Loan, you can borrow funds starting at ₱10,000 up to ₱200,000 with a monthly interest rate of 2%. You can pay it back in six, 12, 18, 24, or 36 monthly installments.
Apply for an UNONow Loan via Moneymax now!
How to Apply for a DTI Loan for a Small Business
Now that you know which loan program best suits your needs, here's how to apply:
- Once you prepare all your DTI loan requirements, go to the SBCorp Borrower Registration System.[2]
- Click I Agree to the terms and conditions and then Create New Account.
- Enter the required information on the DTI loan application form online and click Create Account.
- After reading the reminders on the pop-up window, click Proceed.
- Check the email sent to the nominated email address to verify your newly created account.
- You can start applying for a RISE UP loan from the BRS dashboard. After choosing a suitable loan program and sub-program you're qualified for, click Apply.
- Confirm whether your business is DOT-accredited or provide the FMCG reference number or store ID, then click Submit.
- Fill out the prequalification section, including business information and how you want to receive the loan proceeds.
- Verify your bank account details.
- On the Preview page, upload your documentary requirements.
- Next, affix your digital signature using your mouse or phone screen. Submit it.
- Download or print a copy of your accomplished loan application. To check the status of your RISE UP loan application, log in to your BRS account and check for updates on the dashboard.
Alternatively, you can email sbcorporation@sbcorp.gov.ph regarding where to apply for the P3 Program.
Read more:
- Smart Tips to Get Approved for a Business Loan
- Online Business Ideas You Can Start Even with Small Capital
- Profitable and In-Demand Home-Based Business Ideas in the Philippines
Final Thoughts
It's challenging to run a business. As a business owner, it's your job to do everything you can to keep your business running. Still, you must consider your current financial status and ability to repay a loan before applying for one.
If you’re qualified to apply for any of these DTI loans for small businesses, congratulations. You can operate your business without worrying about escalating financing costs and loan repayments.
But if you lack the requirements for a DTI or government loan or fail to get approved, you can also consider these options from banks and private lenders with more straightforward application requirements and processes. Get a personal loan for your micro or small business through Moneymax!
.png?width=149&height=52&name=Unobank-Logo-Colored_Horizontal-Medium%20(for%20MMX).png){kind=logo}
.svg.png?width=130&height=35&name=2560px-HSBC_logo_(2018).svg.png){kind=logo}
Sources:
- [1] DTI releases P5.4-B loan under P3 Program (Philippine News Agency, 2020)
- [2] SBCorp’s Borrower Registration System
Back to Blog 
