This aims to improve productivity and enhance competitiveness.
Last May 4, the Department of Science and Technology (DOST) and Landbank inked a Memorandum of Understanding (MOU) in Manila to collaborate on providing accessible funding for their local enterprises.
The two parties have joined forces to support micro, small, and medium enterprises (MSMEs) and startups through an enhanced financing platform.
The MOU will support the development and the expansion of the DOST-assisted MSMEs rooted in its flagship programs.
The list include the Small Enterprise Technology Upgrading Program (SETUP), the Technology Innovation for Commercialization (TECHNiCOM) Program, and the Startup Grant Fund (SGF).
These local tech-driven entrepreneurs will be provided access to the Landbank Innovative Financing Thrust Towards Inclusive National Growth Thru MSMEs (LIFTING MSMEs), designed to equip them on the growth and expansion of their businesses.
Currently, the DOST said it has an initial list of MSMEs, vetted from a pool of 10,000, and its existing assisted MSMEs before the Landbank’s lending program review through a referral process.
Landbank President and Chief Executive Officer Lynette Ortiz said, “MSMEs are the backbone of our economy. They generate a lot of employment, sustain local industries, and anchor growth in our community. And yet, access to capital is scarce, and they always find it difficult to grow and expand because financing is limited.”
For his part, DOST Secretary Renato Solidum, Jr. told, “Tutulungan namin ang MSMEs sa application procedure (sa LIFTING MSMEs),” adding that the department of has long been doing it through its own set of programs.
The only difference this time, the source of funds will be the Landbank lending program.
Usec. Sancho Mabborang assured that recommendees will be expanding in the long-term.
“Yung mga irerecommend natin sa LANDBANK, lumalawak nang mahabang panahon at tinututukan ng DOST. Kumbaga, nangangailangan ang mga ito ng capitalization para ma-expand pa at mag-scale up,” said DOST Undersecretary.
Depending on the “levels” of these MSMEs, approved enterprises will receive anywhere from PHPA500,000 pesos for startups, PHP5 million pesos for expanding MSMEs, and up to PHP50 million pesos seeking to level up.
Other than this financial support, Solidum also affirmed that this opportunity supports the initiative of DOST in establishing innovation hubs across the country and bringing in two hundred thousand new local job opportunities for Filipinos.
“I know that [this] is not to simply earn money, but to promote the lives of our countrymen para magkaroon ng mas mayaman, ligtas, mahaba, at de-kalidad na buhay.,” he said.
“We look forward to seeing the Filipino enterprises win big time—not only here in the Philippines, but also globally.”