A window of opportunity for OFWs in the Energy Business

OFWs who are aspiring to be entrepreneurs can now take advantage of the economic benefits of the country’s Downstream Oil Industry Deregulation Law.

Aspiring OFW entrepreneurs can now apply for low-cost loans from the Department of Energy, through its Gasoline Station Lending and Financial Assistance Program, up to P10 Million or 80% of the total business cost, the remaining 20% being the venture capital equity.

This increase is designed to make it more accessible and affordable to our OFWs who want to venture into putting up a gasoline outlet or an auto LPG station. The loanable amount was increased from the original P5M payable in seven years.

This business loan program offers a fixed rate of 6% per annum and payable within a maximum of 10 years, with a grace period of 6 months that is enough to build the necessary infrastructure or store outlet and marketing. After this 6-months grace period, the first monthly installment becomes due.

OFW individuals or groups who qualify for this program are required to complete the training program run by the Department of Energy to prepare the aspiring OFW entrepreneurs for the rigors of owning this type of business to ensure their success and ultimate active contribution to our local economy.

I would encourage everyone who is interested to avail of this Program to apply as a cooperative because you can maximize your economic benefits through income tax exemptions being a cooperative as provided for in Republic Act 9520 known as the Philippine Cooperative Code of 2008. Inquire from the Cooperative Development Authority how to qualify for such incentives and download related information and forms to be filled up.

For further details of this Lending and Financial Assistance Program, please check DOE’s Department Circular No. DC2011-03-0005 of March 2011.


OTHER RELATED POSTS: 

• The P1B Loan Program for Returning OFWs 
• Website invites Pinoys Abroad to Explore job opportunities at home 
• Creative Business Ideas for OFWs

The P1B Loan Program for Returning OFWs

A website that invites Pinoys abroad to seriously explore job opportunities at home. The Government has also offered an initial outlay of P1B available credit for OFWs who want to put up a business back home either as an individual or group borrower as a partnership, corporation or cooperative.

I wonder how many have taken advantage already of this available capital for business at a highly subsidized interest rates

Several opportunities for business-minded OFWs await at home, more so because the Philippine Economy is already picking up as evidenced by the recent credit ratings upgrade given to the Philippines by Moody's Investors Service and Fitch Ratings after almost eight years while the big economies of the US and Europe are experiencing a sustained downturn, with the US and Greece contemplating on declaring a default on their sovereign credit obligations.

The Philippine economy is seen by the Asian Development Bank (ADB) to grow at around 4.6%-5% this year and up to 5.3% in 2012, while the US economy long-term credit outlook is being downgraded by Standard and Poor's Ratings Services from "stable" to "negative". This should tell us that windows of opportunities for business are now opening up here while the opposite is happening in the usually progressive economies in the West, including Italy.

How about giving a serious thought on these things and invest back in our country?