The Marcos administration is launching a loan facility for franchising businesses to stimulate entrepreneurship, create jobs, and drive economic growth.
The Department of Trade and Industry's (DTI) financing arm, Small Business Corporation (SBCorp), and the Philippine Franchise Association (PFA) signed a memorandum of agreement (MOA) to promote the development of micro, small, and medium enterprises (MSMEs) through franchising and provide a way for MSMEs to expand quickly and efficiently into new markets.
"What President BBM (Bongbong Marcos) wants to happen is for us to be able to provide jobs, and the fastest way for us to be able to provide jobs is to grow the existing business," said DTI acting secretary Ma. Cristina Roque, noting that this is what the business model of franchising promotes. She added that the franchising business aligns with President Ferdinand R. Marcos Jr.'s directive to create more jobs for Filipinos.
Part of the agreement includes extending a loan program through SBCorp for those who would like to venture into franchising, especially those with over 200 franchise brands under the PFA. Roque added that her agency is also looking into partnering with the Department of Migrant Workers (DMW) to promote franchising businesses among OFWs.
"We must understand $40 billion in yearly remittances from the OFWs. So most of them don't know where to put the money," she said. "The only way is to offer different business opportunities or different opportunities for the Filipino people… and one of them is to go franchise."
In addition, PFA chair Sam Christopher Lim said the deal aims to provide skills training on franchising, link to suppliers, and promote Filipino franchise brands in the global market, especially to overseas Filipino workers and their families.
SBCorp president Robert Castillo stated that under the agency's general loan facility, a first-time borrower who wants to start a business could access a minimum loan of P30,000 collateral-free. A repeat borrower with good credit standing can also tap SBCorp for a loan of as much as P5 million. SBCorp offers a low interest rate of 1% per month based on a diminishing balance.
Castillo mentioned that with the new financing facility, SBCorp targets at least 50 franchisee-borrowers whose loan applications can be approved within the day.
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