The Department of Trade and Industry (DTI) has set aside ₱1 billion to help young Filipinos start and grow their own businesses, launching a new loan program aimed at removing one of the most common barriers to entrepreneurship: access to capital.
The Youth Enterprise Fund, rolled out through DTI’s financing arm, the Small Business Corp. (SB Corp.), offers loans specifically tailored to aspiring business owners between the ages of 18 and 30. Eligible applicants may borrow between ₱100,000 and ₱500,000 without collateral, a threshold that puts the program within reach of many young Filipinos who have a viable business idea but lack the assets typically required to secure traditional bank financing.
Trade Secretary Cristina Roque said the fund is meant to encourage more young Filipinos to pursue entrepreneurship by pairing startup financing with flexible repayment terms. “This is our investment in the ideas, energy and future of Filipino youth,” Roque said during the program’s launch. “We often hear that you are never too young to dream big and never too early to begin. This loan is for you.”
Borrowers under the program will have a one-year grace period on principal payments and up to three years to repay their loans, giving new businesses time to establish operations before shouldering full repayment obligations.
For Filipino entrepreneurs, particularly those outside Metro Manila who may have limited access to traditional lenders, the collateral-free structure addresses a persistent gap in the country’s small business financing landscape. Most conventional bank loans for startups require real estate, equipment, or other assets as security, a requirement that shuts out many first-time entrepreneurs regardless of how sound their business plan may be. The Youth Enterprise Fund is designed to bridge that gap specifically for the 18-to-30 age bracket, a segment DTI has identified as having ideas but limited financial track record.
Applications open on July 27 through the SB Corp. mobile application and website. Applicants need only register, submit a valid government-issued ID, a photo of their business, and the required business permits. DTI said the streamlined process is intended to make financing more accessible to first-time entrepreneurs who may not have experience navigating traditional loan applications.
The Youth Enterprise Fund adds to SB Corp.’s existing portfolio of financing programs for micro, small, and medium enterprises (MSMEs), which includes export financing facilities of up to ₱30 million for larger, established businesses. The new fund specifically targets the earliest stage of the entrepreneurial pipeline, before businesses have built the credit history or assets needed to qualify for those larger facilities.
DTI is separately requesting an additional ₱5 billion for SB Corp. next year, according to the agency, citing rising demand for financing among MSMEs across the country.
