In the Philippines, small enterprises form the backbone of the economy, comprising over 99% of all business establishments and generating approximately 66.97% of total employment. Despite their significant contribution, these businesses often face challenges in accessing affordable financing, slowing their growth and sustainability.
Government small business loans play a pivotal role in addressing this gap. These loans offer small businesses the financial support needed to invest in technology, expand operations, and enhance competitiveness.
Moreover, the government's commitment to MSME development is evident in initiatives such as the MSME Development Plan 2023-2028, which aims to strengthen the sector's resilience and competitiveness through strategic support and policy reforms.
In this blog, we will explore the various government loan programs available to small businesses in the Philippines. We will highlight their benefits and how they can catalyze your business’s success.
Benefits of Government Loan Programs for Small Businesses in the Philippines
Government loan programs in the Philippines offer a range of financial and non-financial benefits that help entrepreneurs start, sustain, and expand their businesses.
- Lower Interest Rates and Flexible Terms
Government loans typically offer lower interest rates compared to private lenders, making borrowing more affordable for small businesses. For example, the Pondo sa Pagbabago at Pag-Asenso (P3) program offers loans with a combined monthly interest rate and service charge of less than 2.5%. Some programs, like the DTI CARES initiative, even provide zero-interest loans for pandemic recovery.
- Longer Repayment Periods
Repayment terms for government loans are generally more flexible and longer, allowing businesses to manage cash flow better and reduce financial stress during the repayment period.
- No or Minimal Collateral Requirements
Many government loan programs do not require collateral, making them accessible to startups and micro-entrepreneurs who may lack substantial assets. This is particularly advantageous for new businesses with limited resources.
- Targeted Support and Inclusivity
Government loans are designed to address specific challenges small businesses face, such as recovery from economic disruptions, expansion, or entry into new markets. Programs often prioritize sectors like agriculture, manufacturing, and services, and may offer special terms for women, youth, or rural entrepreneurs.
- Business Development and Capacity Building
Beyond financial support, government programs often provide access to training, mentorship, business advisory services, and capacity-building workshops through agencies like the Department of Trade and Industry (DTI) and its Negosyo Centers. These services help entrepreneurs improve their business skills and increase their chances of long-term success.
- Market Access and Export Opportunities
Initiatives like DTI's Go Lokal! program helps small businesses showcase their products in mainstream retail outlets and online platforms, expanding their market reach and supporting export growth.
- Credit Guarantees and Increased Accessibility
Agencies like the Philippine Guarantee Corporation (PhilGuarantee) offer credit guarantees, reducing the risk for banks and making it easier for MSMEs to secure loans. This helps businesses that might otherwise struggle to obtain financing from traditional lenders.
For more tips on preparing your business for funding, see Common Types of Bank Loan Options Available in the Philippines.
Next, let's discuss the different types of government small business loans available in the Philippines.
Government Loan Programs for Small Businesses in the Philippines
Access to affordable financing is one of the biggest challenges for micro, small, and medium enterprises (MSMEs) in the Philippines. To bridge this gap, the government has developed a range of loan programs tailored to different business needs, sectors, and stages of growth. Below are the most prominent government loan programs:
Here is a summary table:
1. Pondo sa Pagbabago at Pag-Asenso (P3)
The P3 program is a flagship micro-financing initiative by the Department of Trade and Industry (DTI) and Small Business Corporation (SB Corp). It aims to provide affordable loans to micro-entrepreneurs and protect them from predatory informal lenders.
Who is eligible?
- Existing MSMEs operating for at least one year
- Asset size not exceeding ₱3,000,000
- Most micro-entrepreneurs, including sari-sari stores, market vendors, and retail/wholesale merchants
Terms:
- Loan amount: ₱5,000 to ₱200,000
- Interest rate: 2.5% monthly
- Repayment: Up to 24 months, quarterly payments
- Collateral: None
Documentary Requirements:
- Filled-out application form
- Valid government-issued photo ID
- Business registration documents (DTI/SEC)
- Barangay clearance (past three months)
- Proof of business activity for at least one year
2. RISE UP Loan Program (SB Corp)
The RISE UP (Resilient, Innovative, Sustainable Enterprises, Unleash your Powers) Loan Program by Small Business Corporation (SB Corp) offers multi-purpose loans to micro, small, and medium enterprises (MSMEs) to support recovery and growth.
RISE UP Micro Loan
Who is eligible? Existing micro and small businesses (at least 1 year in operation, asset size ≤ ₱3,000,000)
Terms: Up to ₱300,000 (max 20% of asset size), 12% annual interest, up to 5 years repayment, 12-month grace period, no collateral
Documentary Requirements:
- Valid government-issued ID
- Barangay Certification (for loans < ₱100,000)
- BMBE Certificate (for loans > ₱100,000)
- Proof of business activity for at least one year
- Photos/videos of business assets
RISE UP First Timers Loan
Who is eligible? SMEs operating for at least 3 years
Terms: Up to ₱2,000,000, 12% annual interest, up to 3 years repayment, 12-month grace period (loans up to ₱300,000), no collateral
Documentary Requirements:
- Valid government-issued ID
- BMBE Certificate or Mayor’s Permit (for loans > ₱100,000)
- Photos/videos of business assets
- BIR-filed financial statement (previous year, positive net earnings)
RISE UP Suki Loan
Who is eligible? Existing SB Corp borrowers in good standing
Terms: Up to ₱5,000,000 (unsecured), up to ₱10,000,000 (secured), 12% annual interest, up to 5 years
Documentary Requirements:
- Proof of sales and asset value
- Financial statements
- BIR-filed reports (for loans > ₱3,000,000)
- Ownership/valuation documents (for secured loans)
3. DOLE Integrated Livelihood/Kabuhayan Program
The DOLE Integrated Livelihood Program (DILP), or Kabuhayan Program, is a grant-based initiative by the Department of Labor and Employment (DOLE) designed to empower vulnerable, marginalized, and disadvantaged workers in the Philippines.
Unlike loans, this program provides startup capital and comprehensive support to those in need, such as workers affected by disasters, economic changes, or job displacement, ensuring immediate relief and long-term sustainability for their livelihood.
Who is eligible?
- Marginalized, disabled, seasonal workers, elderly, women, youth, indigenous people, rebel returnees, displaced workers, low-wage earners
Terms:
- Grant amount: Up to ₱20,000 (individual), up to ₱1,000,000 (group, 50+ members)
- No repayment required
- Must share 20% of the business stock with the government
Documentary Requirements:
- Application letter
- Confirmation of not being part of the 4Ps program
- Detailed business plan
- Applicant’s profile with photo
4. Agricultural Credit Policy Council (ACPC) Loan Programs: KAYA and ANYO
The Agricultural Credit Policy Council (ACPC), under the Department of Agriculture, manages several loan programs to boost the productivity and financial resilience of farmers, fisherfolk, and agri-based micro and small enterprises in the Philippines. Its flagship programs include KAYA and ANYO.
KAYA (Kapital Access for Young Agripreneurs)
The Kapital Access for Young Agripreneurs (KAYA) is a loan program by the Agricultural Credit Policy Council (ACPC) designed to support young Filipinos aged 18-30 in starting or expanding agri-fishery businesses.
The program is open to graduates of formal or non-formal agri-fishery schooling and includes capacity-building workshops, technical training, and business planning support to help young agripreneurs succeed.
Who is eligible? 18–30 years old, agri/fishery graduates or trainees
Terms:
- Up to ₱500,000
- 0% interest, 3.5% one-time service fee
- Up to 5 years to repay
- No collateral
Documentary Requirements:
- Valid government ID
- Basic business plan
- Certificate of agri-fishery training
ANYO (Agri-Negosyo Loan Program)
The Agri-Negosyo Loan Program (ANYO) is a zero-interest loan facility by the Agricultural Credit Policy Council (ACPC) that finances the capital requirements of individual small farmers and fisherfolk, their organizations, and agri-fishery micro and small enterprises. Loans can be used for production, processing, marketing, equipment, or facility needs.
Who is eligible? Individual small farmers/fishers, registered agri-businesses, OFWs
Terms:
- Up to ₱300,000 (individual), up to ₱15,000,000 (enterprise)
- 0% interest, 3.5% one-time service fee
- Up to 5 years to repay
- No collateral
Documentary Requirements:
- For individuals: valid ID, recent photo, RSBSA registration
- For enterprises: project proposal, board resolution, registration documents, audited financials, DA endorsement, FFEDIS registration
5. DTI CARES Program (COVID-19 Assistance to Restart Enterprises)
A zero-interest, collateral-free loan program by the Department of Trade and Industry (DTI) and Small Business Corporation (SB Corp) to help MSMEs recover from the COVID-19 pandemic.
Who is eligible?
- MSMEs with at least 1 year in operation
- Micro (assets ≤ ₱3M), Small (₱3M–₱15M), Medium (₱15M–₱100M) enterprises
- Filipino-owned or majority Filipino-owned businesses
- Applicants over 65 must have a co-borrower from their immediate family
Terms:
- Loan amount: Up to ₱500,000 (higher for medium enterprises)
- Interest rate: 0% interest with minimal service fee
- Repayment: Up to 3 years with a possible grace period
- Collateral: None required
Documentary Requirements:
- Valid government ID
- Business permits (Mayor’s permit, Barangay clearance)
- BIR-filed financial statements (if available)
- Proof of business operation for at least one year
- For corporations: proof of ownership or authorized signatory
- For applicants over 65: co-borrower documents
6. Livelihood Seeding Program / Negosyo Serbisyo sa Barangay (LSP-NSB)
The Livelihood Seeding Program / Negosyo Serbisyo sa Barangay (LSP-NSB) is a Department of Trade and Industry (DTI) initiative for MSMEs that brings business development assistance directly to barangays, especially in underserved and disaster-affected areas.
LSP-NSB also offers business advisory services, training, and support for business registration through partnerships with local government units and Negosyo Centers.
Who is eligible?
- All MSMEs, with priority given to those affected by natural disasters
Terms:
- Aid kit worth ₱5,000–₱8,000 (not a cash loan)
- No repayment required
Documentary Requirements:
- Business name registration or barangay permit
- Action plan
- Pledge of commitment
- Attendance at business sessions
7. SWINE Lending Program (LandBank)
The SWINE Lending Program (Special Window and Interim Support to Nurture Hog Enterprises) by the Land Bank of the Philippines provides financing to support the swine industry and strengthen pork supply for food security. Open to commercial hog raisers, cooperatives, farmers’ associations, SMEs, and large enterprises, the program funds swine production, feed milling, facility construction, equipment, and working capital. The program is available nationwide until December 31, 2026, in partnership with the Department of Agriculture.
Who is eligible?
- Businesses in pig breeding and meat production
Terms:
- Loan up to 80% of the project cost
- 3% annual interest
- Up to 3 years repayment, a grace period is available
- Collateral: real estate or chattel mortgage
Documentary Requirements:
- Project plan
- Certifications from BAI, DA RFO TWG, LGU
- Other documents as required by LandBank
8. Lending Program for Former Rebels
The Lending Program for Former Rebels, now called the Balik-Loob Lending Program (BLLP) by the Land Bank of the Philippines, is a specialized loan facility supporting the livelihood and reintegration of former rebels and violent extremists, including their cooperatives and associations. This program is part of the government’s Enhanced Comprehensive Local Integration Program (E-CLIP), aiming to promote peace and financial inclusion in conflict-affected areas.
Who is eligible?
- Former rebels (with no pending legal cases) and their family members
Terms:
- ₱25,000 to ₱100,000 (max 90% of project cost)
- 6% annual interest
- 1–5 years repayment, grace period of 1–5 years
- Collateral: real estate or chattel mortgage
Documentary Requirements:
- Valid government ID
- Certificate Joint AFP-PNP
- Project plan
If you need money faster, want a bigger loan, or prefer flexible terms, N90 Asia is a great option. You can get approved in as little as 24 hours, enjoy clear fees, and borrow up to ₱25 million. N90 helps you manage cash flow, grab new opportunities, and grow your business with expert support at every step.
Possible Drawbacks of Government Assistance for Small Businesses in the Philippines
While government loan and assistance programs have been instrumental in supporting small businesses, it’s important to recognize the challenges and limitations that SMEs may encounter when accessing these resources. Here are some possible drawbacks that you can face:
- Lengthy and Complicated Application Processes
Many government programs involve complex, bureaucratic procedures with numerous forms and documentation requirements. This can lead to significant delays in accessing funds, which is especially challenging for businesses needing immediate support.
- Limited Funding and Coverage
Government programs often have restricted budgets and limited geographic reach. As a result, not all eligible SMEs receive assistance, and those in rural or remote areas may find it particularly difficult to access these services.
- Strict Compliance and Regulatory Requirements
SMEs must meet stringent eligibility criteria and comply with various regulatory and reporting standards. These requirements can be burdensome for small businesses with limited administrative capacity, potentially discouraging some from applying.
- Insufficient Support for Startups and High-Growth Enterprises
Many government loans prioritize micro and livelihood projects or established businesses, leaving startups and high-growth SMEs with fewer options for early-stage funding.
- Risk of Inadequate or Misdirected Assistance
Some funds may not reach the intended beneficiaries or may be allocated to projects that fail to scale, limiting the overall impact of government support.
- High Cost of Doing Business and Overregulation
Despite reforms, SMEs still face high taxes, fees, and complicated licensing procedures. Overregulation and a lack of coordination among agencies can further increase the cost and complexity of running a business.
- Short Repayment Periods and Collateral Requirements
Some programs may require relatively short repayment periods or collateral that small businesses cannot easily provide, making it harder for them to benefit from available financing.
- Challenges in Market Expansion
SMEs may find it difficult to expand into new markets due to the need for additional permits and compliance with varying local and international standards, which are often complex and costly.
While government programs aim to support small businesses, their limitations often turn SMEs to alternative financing options that offer more flexibility and faster access.
Alternatives to Government Small Business Loans for Small Businesses in the Philippines
If government loans aren’t the right fit, Philippine SMEs have several alternative funding options:
1. Private Lending Companies
Firms like N90, offer quick approvals, flexible terms, and loans up to ₱25 million. Requirements are often simpler than banks, making them ideal for SMEs needing fast access to capital.
2. Bank Loans
Major banks (BPI BanKo, UnionBank, Maybank) provide SME loans with larger amounts and longer repayment periods. However, they may require more documents and collateral.
3. Online Lending & Fintech Platforms
Digital lenders (e.g., Advance PH, Kayamo) offer fast, paperless applications, quick disbursement, and products like revolving credit, invoice financing, and payroll loans. Approval is often based on business performance, not just collateral.
4. Microfinance Institutions
Microfinance providers focus on small, short-term loans for startups and micro-businesses, especially in rural areas, with low credit requirements.
5. Crowdfunding & Peer-to-Peer Lending
Platforms like Investree PH (until September 2025) let SMEs raise funds from individual investors, often with no collateral and flexible terms.
6. Angel Investors & Venture Capital
Startups with high growth potential can seek funding and mentorship from angel investors or venture capitalists.
Final Words!
Government small business loans play a crucial role in empowering Filipino MSMEs by offering affordable capital, capacity-building programs, and inclusive support for underserved sectors. Whether you're just starting out or planning to expand, these programs can be a strong foundation for long-term growth.
Still, it’s no secret that government loans often involve long waiting periods, complex paperwork, and limited availability. That’s why it’s smart to explore alternative financing routes that offer speed, flexibility, and ease, especially when timing is everything.
At n90, we’re more than a lender, we’re your growth partner. Whether you need fast loan approvals, funding up to ₱25 million, or invoice financing to get tied-up cash, we provide transparent, tailored solutions to keep your business moving forward. There are no hidden fees or unnecessary delays, just financing built around your goals.
You can connect with us now and get the funding your business needs to grow and succeed!
FAQs
What are the three types of business loans in the Philippines?
The main types are:
- Term Loans: Lump-sum loans repaid over a fixed period, usually for expansion or capital expenses.
- Lines of Credit: Flexible loans allowing you to borrow as needed up to a set limit, ideal for managing cash flow.
- Invoice Financing: Loans or cash advances based on outstanding invoices, helpful for businesses with long payment terms.
What type of loan is best for a small business in the Philippines?
The best loan depends on your business needs and eligibility. For startups and micro-businesses, microfinance or government-backed loans like DTI’s P3 offer low rates and simple requirements. For established SMEs, term loans or lines of credit from banks or private lenders provide larger amounts and longer terms. Always match the loan type to your business purpose and repayment capacity.
Can you get a small business loan in the Philippines with no money?
Yes, you can. Many lenders, including banks, fintechs, and government programs, offer non-collateral business loans based on your creditworthiness, business plan, and financial projections rather than upfront capital or assets. Requirements usually include a viable business model, proof of operations, and basic documents.
What is the easiest small business loan to get in the Philippines?
Microfinance loans and government programs like DTI’s P3 are among the easiest to access, with minimal requirements, no collateral, and fast processing, ideal for micro and small businesses. Some online lenders like n90 and fintech platforms also offer quick, collateral-free business loans with simple application processes
