JEDDAH, 28 June 2003 — If you believe you are ready to go into business at home but still lack the capital to start one, consider the SULONG program of the Philippine Department of Trade and Industry (DTI) and move forward with your plan.
SULONG, which stands for Small Unified Lending Opportunities for National Growth, is a new DTI program which provides short- and long-term loans at reasonable rates and less stringent requirements.
“This project is meant to help Filipino entrepreneurs start their own business by giving loans under easier terms and conditions,” said lawyer Paisal Abdullah, who was sent by Trade Secretary Mar Roxas from Manila to the Kingdom to spread the good news to the Filipino community.
OFWs are encouraged to avail themselves of the loan opportunity even while they are still working abroad, Abdullah explained during last week’s Kapihan sa Jeddah forum organized by the Kasapi Congress. Abdullah also spoke to Arab News on Wednesday to expound on the DTI”s program. He said OFW borrowers may delegate members of their family to manage their business in the Philippines.
He said SULONG”s short-term loan is for those who intend to put up a business for the first time, while the longer-term loan is for existing business entities that need additional capital or for those who wish to expand their business. The entrepreneur can borrow up to five million pesos in both programs. The short-term loan is payable within one year with at nine percent interest rate. The long-term loan, payable within five years, has a 12.25 percent interest rate.
Abdullah said the good thing with the SULONG program is that while the borrower will be made to issue a post-dated check, among other requirements, their loan applications will not be refused or disapproved for reasons of inadequate collaterals.
He also introduced the DTI’sother programs that OFWs may be interested in.
One is called Pinoy Pandesal, a joint project of the DTI and the Federation of Bakers Association and Cooperative (PBAC) using the new technology called Formulated Flour Mix “to build the capabilities of bakers and baking cooperatives.”
Abdullah said the aim of the project is to insulate the price of the flour from the fluctuation of the price of flour in the world market. “The main objective is to fix the price to one peso without sacrificing the quality of the pandesal or bread. Indeed it has better quality than the regular flour in the market and the cost is cheaper,” he explained.
Another opportunity that OFWs may want to look into is the joint livelihood program of the DTI and San Miguel Corporation, the biggest Filipino company.
As explained by Abdullah, if an OFW owns a lot area of 300 to 500 square meters located in a highly commercial area, San Miguel would construct a business establishment for him and also provide equipment needed in the business. The condition is that the establishment will carry San Miguel Products and the lot will serve as collateral for the loan.
Thousands of Filipinos have become successful entrepreneurs by tying up with San Miguel and other big companies under similar schemes.
Abdullah was the Philippine commercial attaché in Jeddah until the DTI pulled out some of its representatives abroad due to budgetary constraints. The embassies and consulates have assumed the DTI’s responsibilities.
Abdullah encouraged the OFW Cooperative Council (OFWCC), one of the major Filipino organizations in the Kingdom, to get with touch with the DTI for support on whatever project they will have in the future.
He said was impressed with the OFWCC”s Business and Food Festival held at the Philippine Consulate in Jeddah in celebration of Philippine Independence Day.