DOST & LANDBANK Launch Loans for Philippine MSMEs and Startups
The Department of Science and Technology and LANDBANK partner to provide direct financing for the upgrade and expansion of Philippine enterprises.
A partnership to provide accessible funding for Filipino businesses was formalized through a Memorandum of Understanding (MoU) signing on May 4. Renato U. Solidum Jr., Department of Science and Technology (DOST) secretary, and Lynette V. Ortiz, LANDBANK president and CEO, inked the agreement at the LANDBANK Plaza in Manila.
“MSMEs are the backbone of our economy,” Ortiz said in a May 4 press statement. “They generate a lot of employment, sustain local industries, and anchor growth in our community. Yet access to capital is scarce, and they always find it difficult to grow and expand because financing is limited.”
How MSMEs Can Utilize LANDBANK Financing for DOST Technology Programs
The MoU will support the development and expansion of DOST-assisted MSMEs rooted in its flagship programs, such as the Small Enterprise Technology Upgrading Program (SETUP), the Technology Innovation for Commercialization (TECHNiCOM) Program, and the Startup Grant Fund (SGF).
MSMEs can now access the LANDBANK Innovative Financing Thrust Towards Inclusive National Growth Thru MSMEs (LIFTING MSMEs) to grow and expand their business.
Depending on the “levels” of MSMEs, as explained by LANDBANK Executive Vice President Charlotte I. Conde, those approved will receive:
- P500,000 for startups,
- P5 million for expanding MSMEs, and
- up to P50 million for those transitioning to large enterprises.
The Department already has its initial list of MSMEs, vetted from a pool of 10,000 through a referral program. It also has existing assisted MSMEs.
Secretary Solidum said this opportunity aligns with the DOST’s initiative to establish nationwide innovation hubs, aiming to generate 200,000 new local job opportunities for Filipinos.
“I know that [this] is not to simply earn money, but [also] to promote the lives of our countrymen para magkaroon ng mas mayaman, ligtas, mahaba, at de-kalidad na buhay,” he said in the same press statement. “We look forward to seeing the Filipino enterprises win big time—not only here in the Philippines, but also globally.”
Frequently Asked Questions
The Memorandum of Understanding specifically supports the development and expansion of businesses rooted in the Small Enterprise Technology Upgrading Program (SETUP), the Technology Innovation for Commercialization (TECHNiCOM) Program, and the Startup Grant Fund (SGF).
The amount of financial assistance is determined by the growth stage of the enterprise, providing P500,000 for startups, P5 million for expanding MSMEs, and up to P50 million for businesses transitioning into large enterprises.
MSMEs can access these funds through the LANDBANK Innovative Financing Thrust Towards Inclusive National Growth Thru MSMEs, which is more commonly referred to by the acronym LIFTING MSMEs.
The Department facilitates access through a formal referral process involving an initial list of vetted MSMEs selected from a pool of 10,000 existing assisted enterprises for LANDBANK’s lending program review.
The initiative seeks to establish nationwide innovation hubs that will generate 200,000 new local job opportunities while promoting a safer, longer, and higher quality of life for Filipinos by helping local enterprises compete on a global scale.
