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An OFW’s Guide To OWWA’s Business Loan Programs

If you’re an ofw looking to start a business, you should know that there are now lots of options with banks and legitimate financial institutions to apply for a loan for business purposes..

For one, there is the government-supported Overseas Workers Welfare Administration (OWWA) loan program, the requirements for which are not as hard as you think.

In fact, OWWA has two types of OFW loans. One is called the OFW Reintegration Program, and the other one is in partnership with the Landbank of the Philippines, called the OFW Enterprise Development and Loan Program (OFW-EDLP).

Let’s take a closer look at both these business loans to better determine which one is the right OWWA loan for you.

1. OWWA Reintegration Program

This is for retired OFWs or those that are no longer planning work abroad.

As the name suggests, the OWWA Reintegration Program aims to provide financial assistance and livelihood to former OFWs. To be eligible, the OFW must be an active or non-active OWWA member, within a year after coming home to the country.

The reintegration program also applies to OFWs who have been repatriated or displaced for political reasons in the country they worked at.

How much can I loan from this program?

The livelihood assistance is up to P10,000 with technical and/or entrepreneurial training, starter kits/goods, and other services that will enable the former OFWs to start their own business or livelihood.

(Read: OWWA Benefits Every OFW Needs To Know )

2. The OFW Enterprise Development and Loan Program (OFW-EDLP)

The OFW-EDLP program is where OWWA provides loans to OFWs, whether they are about to retire or are still working abroad. This is done in partnership with Land Bank of the Philippines (LBP).

This program is a little more complicated than the OWWA Reintegration Program, but it also allows you to loan a larger amount.

To avail of the loan, the OFWs must be eligible and provide the documents stated below. You will also be required by OWWA to attend an orientation seminar; the Enterprise Development Training (EDT) seminar.

The EDT provides the OFW with an orientation on finance and business management, and other income-generated livelihoods, as well as relevant information on setting up and sustaining a business.

Take note that the interest rate is at 7.5% per annum (per year), for the whole loan term. The loan amount will depend on the needs of the project, but these are the posted loan amounts to borrow:

For Single Proprietors Minimum loan amount: P100,000 Maximum loan amount: P2,000,000

For Partnerships, Corporations, and Cooperatives Minimum loan amount: P100,000 Maximum loan amount: P5,000,000

The OWWA website provides detailed eligibility and document requirements for OFW-EDLP applicants. The loan purpose must be about “Working Capital and Fixed Asset Acquisition,” as stipulated by OWWA.

What are the eligibility requirements?

• Certified Member, whether active or non-active
• Completed the Enhanced Entrepreneurial Development Training (EEDT)
• Legal spouse
• Parents not older than 60 years old
• Children at least 18 years old

What are the eligible businesses/projects for an OFW-EDLP Loan?

• Franchising
• Contract tie-up with top 1000 corporations
• Agricultural and non-agricultural production/manufacturing
• Service/trading business
• Construction/rental business
• Transport service
• Or any viable project, new or existing

The maximum loan term for loans considered short-term is up to one year. Term loans, on the other hand, are based on cash flow, but they should not reach more than seven years and come with a two-year maximum grace period.

What can I use as loan security or collateral?

If you are going to be taking out an OFW-EDLP loan, you are going to need to provide collateral. The following are the acceptable collateral sources:

• Mortgageable project assets such as machines or equipment, and other assets of the borrower
• Object of financing

(Read: 5 Career Opportunities For OFWs In Their Sunset Years )

How to apply for an OWWA OFW-EDLP Loan?

• Submit a business plan showing the complete description of your business, which shows you can earn or are earning at least P10,000 a month
• Undergo an EDT Seminar at OWWA regional offices, and get an EDT Certificate of Completion
• Submit a completely filled out OWWA Information Sheet
• Mayor’s Permit
• DTI Certificate of Registration
• Income Tax Return for the last three (3) years
• Financial Statements filed with BIR, and latest Interim Financial Statements
• Business Statement of Assets and Liabilities

Know more about the updated application process by visiting the nearest OWWA office . Loan processing usually takes around 45 days.

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How to Apply OWWA Loan – OFW and Seaman Loan

Did you know that there are certain loans that you can apply for as an OWWA member ? As an OFW or seaman , you can use these loans to establish a business or add capital to an existing enterprise, thus helping you generate more income and support your family. This is especially true for OFWs who plan to go home to the Philippines for good. There are livelihood loan programs as well as financial assistance projects that aim to help Filipinos working abroad to return to the country.

Since 1977, the Overseas Workers Welfare Administration (OWWA) has been protecting and promoting the welfare of overseas Filipino workers (OFWs) and their families. It currently has 31 overseas offices in 27 countries, making its programs and services more accessible to Filipinos all over the world.

Among these OWWA benefits and programs are loans that OFWs can use to start their own business or enterprise. In this article, we will be talking about OWWA’s loan programs: who can apply, how much they can borrow, interest rates, and other relevant information.

1. Overseas Filipino Workers – Enterprise Development and Loan Program (OFW-EDLP)

2. helping the economy recover thru ofw enterprise start-ups (heroes) loan program, is there an owwa personal loan available, how to get owwa calamity loan, what is the existing owwa loan for seaman, how to get owwa salary loan, is there an owwa housing loan, ofw stories of owwa negosyo programs / livelihood assistance, video: how to apply for ofw loan from owwa, 1. what are the businesses that would qualify for the ofw-edlp loan, 2. what are the requirements in applying for the owwa loan, 3. where can i learn more information about the edlp program, 4. can i apply for an ofw loan from owwa even if i am not an active member, 5. where can i inquire for more information about these owwa programs.

List of OWWA Negosyo Loan / Pangkabuhayan Loans

Many OFWs dream about establishing their own businesses back home. It is good to start saving a portion of your salary in order to invest in your future ventures. OWWA offers some loan options to get you started with your own business. As an OWWA member, you can can achieve this dream by availing of the following OWWA loan programs:

As the name suggests, this loan program seeks to help OFWs establish their own businesses, thus enabling them to earn a profit, so that eventually they would not need to go abroad and be apart from their loved ones in the Philippines.

Previously known as the OFW Reintegration Program (ORP) , the OFW-EDLP stands for Overseas Filipino Workers – Enterprise Development and Loan Program (OFW-EDLP) . This is an initiative of OWWA, in coordination with the Development Bank of the Philippines (DBP) and Land Bank of the Philippines.

Under the OFW-EDLP program, the loan amount depends on the specific need and amount of equity of each borrower. Individual loan borrowers (single proprietorship) can borrow at least PHP 100,000 up to PHP 2 million , whereas group loan borrowers (e.g. cooperatives, corporations, partnerships) can borrow at least PHP 100,000 up to PHP 5 million .

The interest rate is at 7.5% per year for the duration of the loan, while the equity should be at least 20% of the Total Project Cost (TPC). Moreover, the purpose of the loan should be as working capital and/or fixed asset acquisition.

Who can apply for this loan program? The qualifications are as follows:

• OWWA member (active or non-active)
• Has completed the Enhanced Entrepreneurial Development Training (EEDT)
• If the OFW is married and currently abroad, he/she may be represented by his/her spouse.
• If the OFW is single, separated, a widow, or a widower, he/she may be represented by his/her parents who are not more than 60 years old, or by his/her children who are at least 18 years old.

NOTE: The EEDT is a training program that provides OFWs with knowledge and skills on finance, business management, and other related topics.

Want to check out an OFW success story using OFW-EDLP program? Read this story of a Filipino who was a former cruise ship employee. He was able to set up his own piggery and meat business in his province – OWWA at Your Service: Filipino OFW EDLP Business Loan Beneficiary

Technically speaking, the HEROES loan program is not a program of OWWA; however, you need to be an OWWA member as part of the requirements for this loan.

The HEROES loan program is part of the Pondo sa Pagbabago at Pag-asenso (P3) fund, which is under the Department of Trade and Industry (DTI). It is managed by the Small Business Corporation (SB Corporation), a government-owned and government-controlled corporation that aims to help micro, small, and medium-sized enterprises, including those owned by OFWs.

Notably, SB Corporation has allotted PHP 100 million for said the program, which seeks to help repatriated OFWs who have lost their jobs because of the COVID-19 pandemic. Through this program, they will have the chance to become entrepreneurs and support their families.

Under the HEROES program, repatriated OFWs can borrow at least PHP 10,000 up to PHP 100,000 … without interest and collateral. However, for loans with repayment terms of 24 months , there is a service fee of 6% ; whereas for loans with repayment terms of 36 months , there is a service fee of 8% , and the loan terms are inclusive of a 12-month grace period.

For those who are interested to apply for the HEROES loan program, take note that you will need to submit a video presentation about your business proposal (including the nature of business, market opportunity, management capability, etc.), among other key requirements.

Currently, OWWA does NOT offer any personal loans. It offers only business loans (e.g. OFW -Enterprise Development and HEROES Loan Program), which focus on developing enterprises.

That being said, the agency provides financial assistance programs, scholarship programs , welfare programs , livelihood cash assistance projects , and other special initiatives that include cash aid , but these are NOT personal loans.

OWWA does NOT offer calamity loans; rather, it provides Calamity Assistance . This is a special program for OWWA members and their families who have been affected by calamities such as flooding, typhoons, or earthquakes. It amounts to PHP 3,000 per member.

Take note that Calamity Assistance is NOT a loan, so you don’t have to pay back any amount to OWWA.

The loan projects for seafarers are the same options as those loans for OFWs. There is NO specific seaman’s loan offered by OWWA. Rather, the agency’s business loans are available to land-based AND sea-based OFWs. So seafarers can still apply for the OFW-EDLP program, avail of the other cash assistance programs like scholarships, business pangkabuhayan , welfare assistance, social & health benefits, etc.

As long as you are an active member of OWWA and you comply with the loan requirements, you can apply for business loans, regardless of whether you are a seafarer or not.

If you are wondering if you can get a salary loan from OWWA, the answer is NO. There is no existing OWWA salary loan for OFWs and seaman.

Usually, through banks, lending companies, or private organizations, the salary loan is the first type of loan that they can apply for. However, OWWA does not have one available. We will keep you posted should there be updates on this. For now, it is just the livelihood loan programs that you can avail yourself if you want to get a loan from OWWA.

Just to be clear, OWWA does NOT offer any housing loans. On the other hand, OFWs can apply for housing loans through the Home Development Mutual Fund (a.k.a. Pag-IBIG Fund), the Social Security System (SSS), private banks, and other institutions.

Pag-IBIG Fund is a government-owned corporation that provides affordable shelter financing as well as a national savings program for Filipinos. OFW members can apply for housing loans, home improvement loans, multi-purpose loans, and other services through this agency.

Meanwhile, the SSS happens to have a Direct Housing Loan Facility for OFWs, among other services. Through this facility, OFWs can apply for a housing loan. This program is offered to Filipinos who are: (a) currently deployed abroad; (b) currently awaiting for deployment or renewal abroad); (c) citizens or immigrants in foreign countries but wish to buy a house for their families in the Philippines; or (d) long-term overseas residents who plan to buy a house for their retirement in the Philippines and/or for their families in the country.

Here are some negosyo (business) success stories of overseas Filipinos who have used the OWWA money coming from the existing projects like the OWWA Balik Pinas Balik Hanapbuhay Livelihood Program for OFWs  and  Balik Pinay Balik Hanapbuhay Livelihood Program for Filipina OFWs .

It’s not about how big the money of the capital you should have, cause other Filipinos have built a livelihood with minimal amount. May you find these OFW stories helpful and inspiring to make you aware that you can also set up your humble livelihood or even a thriving business company in the Philippines:

• Interview with Evelyn, former Jeddah OFW, Now with a Tailoiring Business via Balik Pinas, Balik Hanapbuhay
• Interview with Gemma, former Dubai OFW, Now with Digital Marketing Agency via Balik Pinay! Balik Hanapbuhay!
• Interview with Marilou, former Qatar OFW, Now with Salon Business via Balik Pinas! Project
• Interview with Rommelyn, former Jeddah OFW, Now with Sari-Sari Store and Food Business via Balik Pinas Program

If you wish to get a loan from OWWA, please learn to have an entrepreneurial mindset and undergo training implemented to successfully apply for these business loans.

Check out this video about the OWWA business loan as shared via Mommy Thoughts, a vlogger on YouTube. In this video, she presents a quick guide about how to apply for the agency’s business loan for OFWs (i.e. OFW – Enterprise Development and Loan Program).

According to the vlogger, this program is a big help to OFWs who have returned home — and those who are planning to return to the Philippines — as a result of the COVID-19 pandemic.

FAQs on the OWWA Business Loan

Indeed, the OFW – Enterprise Development and Loan Program offered by OWWA is a big help to returning OFWs. Here are the answers to some commonly asked questions about the program.

Applicants who are engaged in the following businesses may apply for the loan program:

• Franchising business;
• Rental business;
• Construction business;
• Service/Trading business;
• Transportation service;
• Agricultural and non-agricultural production;
• Contract tie-up with the country’s top 1000 corporations; and
• Other viable projects, whether existing or new.

To qualify for the OFW-EDLP, you need to prepare the following requirements:

• Application form;
• Two (2) valid IDs;
• Proof of billing address;
• Sketch of place of residence;
• Business plan or proposal;
• Statement of assets and liabilities;
• Barangay certification of residency; and
• Certificate from OWWA stating that you are an OFW and that you have completed the Enhanced Entrepreneurial Development Training (EEDT).

If you are eager to know more about the OFW-EDLP, you can contact OWWA or Land Bank of the Philippines through the details below.

Overseas Workers Welfare Administration (OWWA):

• Customer Hotline Number – 1348
• Mobile Numbers – +63 917 898 6992 (Globe) / + 63 998 981 6992

Land Bank of the Philippines:

• Customer Hotline Number – +632 8 405 7000
• Domestic Toll-Free Number – 1 800 10 405 7000
• Email Address: [email protected]

You have to be an active member of OWWA in order to get an OFW loan. Please activate your membership by paying only a minimum fee of USD 25 which is valid for 2 years. OWWA has also made it easier for you to apply for your membership via OWWA mobile app .

If you would like to seek more info about the loans or other OFW programs by OWWA, you can visit the nearest POLO-OWWA office if you are currently abroad, or you can also visit the nearest OWWA Regional Welfare office in your province.

Through the Overseas Filipino Workers – Enterprise Development Program (OFW-EDLP) and the Helping the Economy Recover thru OFW Enterprise Start-Ups (HEROES) Loan Program , overseas Filipino workers, especially those who are affected by the pandemic, have the chance to rebuild their lives. By establishing their own businesses or enhancing existing ones, they can look forward to generating income and supporting their families here in the Philippines.

These programs are made possible by OWWA, Land Bank, DBP, SB Corporation, and other partner institutions. As long as you are an active member of OWWA, you can apply for business loans to boost your livelihood. So always make sure that your OWWA membership is active!

For more information about these loan programs, as well as other services for OFWs and their families, please visit the official website of OWWA at https://owwa.gov.ph/ .

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Here’s How OFWs Can Avail of OWWA Business Loan

Are you an overseas Filipino worker (OFW) dreaming of becoming an entrepreneur in your own country? Do you intend to run your own business and stay in the Philippines for good?

In order to provide assistance to OFWs who intend to venture into business in the Philippines, the Overseas Workers Welfare Administration (OWWA) is offering business loan under its Reintegration Loan Assistance Program. Through this program, OFWs can loan Php300,000 up to P2 million with an interest rate of 7.5% per year to launch their own small business or even expand their own existing business enterprises.

With the implementation of this program, OFWs may no longer need to keep going back abroad to generate sufficient funds to support their family.

Here are the basic requirements to avail of the loan:

• Accomplished OWWA Information Sheet
• Certificate in Entrepreneurial Development Training
• Business Plan that shows clear description of business project that can earn at least P10,000 a month

Requirements for OFWs with existing businesses:

• Mayor’s Permit
• Certificate of Registration from DTI
• Certificate of Income Tax Return for the past 3 years
• Financial Statements filed in the Bureau of Internal Revenue (BIR) for the past years
• Updated temporary financial statement
• Business’s Statement of Assets and Liabilities

Requirements and specific business plans must be submitted to any OWWA regional office, preferably in the same area where the applicant resides.

Keep in mind that eligible borrowers must be a member of the OWWA and that the loan fund must be used solely for business. You may opt to avail of short-term loans which is payable within one year or long-term loans which is payable up to seven years. A loan security or collateral, such as purchase orders of confirmed clients, machines, equipment or any assets that can be mortgaged such as land titles,  may be required.

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Privacy Overview

How to Get OWWA Loan for OFWs and Seafarers

OWWA has two loans that aim to assist Filipinos to stop dreaming and start their own profitable business without being subjected to a very high-interest rate. These include the HEROES Loan Program and the EDLP Loan program .

Also Read: OFW Guide: Become an OWWA Member

OWWA is extending its capabilities to help OFWs and seafarers achieve their dreams –  even those who are repatriated from jobs due to crisis. The said government institution is providing different types of loans wherein OFWs can start their own business.

Since OFWs are supporting their families in the Philippines, the government has come up with OWWA programs and services that can support OFW-families in the Philippines as soon as they decided to stop working abroad.

• HEROES Loan – Helping the Economy Recover thru OFW Enterprise Start-ups (HEROES) Loan is part of the P3 Fund of Pondo sa Pagbabago at Pag-asenso program of the Department of Trade and Industry (DTI). This OWWA loan program aims to help micro, small, and medium-sized enterprises, especially those owned by OFWs.
• EDLP Loan – This loan is formerly OFW Reintegration Program (ORP), and is now being called Enterprise Development and Loan Program (EDLP) . This loan aims to enable OFWs to earn profit so that in the future they could stay with their loved ones and make profits out of their chosen business/industry.

Common OWWA Loan requirements you must prepare:

• (2) valid IDS (Photocopy)
• It can be a government ID such as TIN, Passport, PRC, or any ID with your photo and signature.
• Supporting documents of your OWWA contribution, it can be an OWWA information sheet, passport with POEA-LAC stamp, E-card, or POEA attested employment certificate.
• Proof of billing address
• Barangay Certification as proof of residency (Photocopy)
• Income Tax Return for at least three years
• Mayor’s permit where the business will be located
• Collateral or security documents
• Statement of Assets and Liabilities
• Birth Certificate for single loan applicant
• Certificate of Marriage for married applicant
• Sketch of your place of residence

Let’s admit it, many OFWs don’t have investments for their future, in fact, many solely rely on their monthly salary. OWWA has seen many stories of struggles from their members even right after working abroad for decades, and now they are introducing these loan programs to finally help their kababayans have a bright future.

HEROES Loan

The SB Corporation who is assigned to manage this program said that they have allotted PHP 100 Million for this program, which can help a lot of repatriated OFWs who lost their jobs because of this pandemic.

Who are eligible for this loan?

Repatriated OFWs are the people eligible to apply for HEROES Loan program. 

How much you can borrow?

• Minimum of PHP 10,000
• Maximum of PHP 100,000

Arrangement: OFWs can borrow money without interest or even collateral. The HEROES loan program also gives 12-month grace period which is inclusive of all of their repayment terms.

• For loans under the 24-months repayment term, there will be a 6% service fee.
• For loans under the 36-months repayment term, there will be an 8% service fee.

Requirements

• Scanned copy of your passport
• Certificate of PTTC Training as proof of completion
• Business Model Canvas (This is exclusive for loans amounting above PHP 50,000)
• Video Presentation

How to apply for HEROES Loan?

Step 1: Go to to register for a PTTC or Philippine Trade and Training Center.

Step 2: Complete the one-day online training. No funds will be collected since it’s totally free.

Step 3: After completing the said training, this is the perfect time to complete all the requirements for your application. For a loan application, you need the follow:

• Passport copy (Scanned)
• Video presentation (Don’t worry because you will be given instruction during the training on how you will prepare the said presentation.)

Step 4: Go to your browser and search https://brs.sbgfc.org.ph/heroes to proceed with your application.

OWWA EDLP Loan

The Enterprise Development & Loan Program (EDLP) is formerly OFW Integration Program. This loan will not be directly funded by the government or OWWA, all funds will be disbursed by Landbank. Therefore, all qualified OFWs must show a certificate from OWWA as a proof that they are a member of the institution regardless of whether they’re active or inactive.

Who are eligible for EDLP loan?

• All OFWs that are certified by OWWA (active or inactive)
• Those who have completed the Enhanced Entrepreneurial Development Training (EEDT)

Note: If the OFW is still abroad, the latter must be represented by “Spouse if Married.” If the borrower is Single, he/she must be represented by a parent, not more than 60 years old or Children at least 18 years old.”

• Minimum of PHP 100,000
• Maximum of PHP 2,000,000

Arrangement: Unlike other OWWA loans, this one taps interest at a rate of 7.5% per annum for the entire duration of the loan. The loan amount will depend on the project needs and the amount of equity participation of the borrower

• For Single Proprietorship borrowers- PHP 100,000 to PHP 2,000,000
• For Group Loans borrowers- PHP 100,000 to PHP 5,000,000

Loan Repayment

• Short (1 year)
• Term (7 years)

Both have a 2-years grace period.

Loan Security/Collateral: Object of Finances

• Mortgage able project
• Assets (Machines or Equipment)
• Other assets of the borrower

Here are the following requirements:

• A business plan for the specific project that will generate revenue for the OFW and his or her family.
• Registration Certificate from the DTI
• OWWA certification that the borrower is an active overseas worker who has completed EDT
• OFW applicant’s biodata
• Income tax return (for the previous three years, if applicable)
• Financial statements (last three years, filed with the BIR, if applicable)
• If applicable, the most recent interim financial statement
• Assets and Liabilities Statement
• Permission from the mayor

How to apply for EDLP Loan?

Step 1: You need an OWWA Registration Verification . This is for OFWs who are still working abroad.

• Inquire and get information about the EDLP loan through the Embassy of your employment country.
• The Officer will then confirm your registration as an OWWA member.
• They will now refer you to an assigned officer of the OWWA office in the Philippines.
• As soon as you return to the Philippines, you need to go to the OWWA office to get a certification.
• Present the said certification to Landbank.

Step 2: Training for Business Development. As an eligible OFW, you need to attend the EDT or Enterprise Development Training from OWWA, DTI, and Landbank. As part of the requirement, you must present the certificate of attendance on the EDT to Landbank.

Note: This EDT training will teach the OFW how to run a business.

Step 3: Preparation of a business plan and other requirements

The OFW must prepare the business plan and other Landbank requirements.

Step 4: You are now in the Submission, Review, and Inspection process.

• Submit all your requirements to Landbank, the latter will then review your application.
• If the business is already established, inspection will be performed.

Step 5: If your loan has been approved, Landbank will release the funds to you.

Frequently Asked Questions

You may check the following questions and answers about getting a loan from OWWA as an OFW or seaman:

1. Does EDLP require collateral?

2. does edlp give a grace period.

Yes, a 2-year grace period will be provided.

3. Can I still get a loan from OWWA if my business was already established?

Yes, you can.

4. Where can I get a business plan?

You can make your own business plan or you can also hire a professional to help you construct a better one. The better the business plan that you have the more chances of getting approved by the bank.

5. What is the best OWWA loan for repatriated OFWs?

Of course, it’s the HEROES Loan.

6. Are there any chances of getting declined?

Just like any other loan program, you might still get rejected. So make sure to submit complete requirements for more chances of getting approved. You also need to be eligible to get approved.

7. What if I wasn’t able to pay the loan?

If your chosen loan required collateral, they will get those assets as collateral for your unpaid loans.

If you’re an OFW who still wants to get a better future and life for your family, but you are repatriated due to the pandemic crisis, there are OWWA loans that can help you. These OWWA loans are not just exclusive for repatriated OFWs because there are also programs intended for those who really want to build their dream business and become an entrepreneur.

Many OFWs are dreaming to go home to the Philippines and stay with their family for good. And the only thing that stops them from doing so is their finances. Since most don’t have their savings or investments, they need to keep on working to send money to their families in the Philippines. But now that these loan programs are being pushed by the government, there’s no reason to freeze those dreams of having your own business and staying with your family for good.

Get the chance to become an entrepreneur and generate an income without living in your home country. Inquire and complete all the necessary documentation of your chosen loan now and never go back abroad!

The approval rate will still depend on your provided requirements and business plan. Make sure to make every step in order.

List of OWWA Loan Programs for OFWs and Seafarers

It’s no surprise that many Filipinos, including OFWs and seafarers , will need some form of financial assistance through loan programs at some point in their lives. And where else can you look for safe and reliable loan programs than from legitimate financial institutions (banks) or the government? This is where the Overseas Welfare Workers Administration (OWWA) will come to the rescue of our OFWs.

You might already know that OWWA offers several member benefits to OFW-members, but did you know that they also have loan programs that you can avail of as long as you meet their requirements? If you’re interested to take one out soon or are just curious about it, then make sure to read it until the end of this guide.

Here are the OWWA Loan Programs You Can Apply for as an OFW

Here are some of the OFW loans you can take out from the agency:

OWWA Business Loan / Negosyo Loan / Pangkabuhayan Loan

The OWWA loan opportunity is based on the P2-billion reintegration initiative, which aims to assist overseas Filipino workers in establishing and growing practical enterprises that would support them and their families. Furthermore, the expansion of enterprises in the community will result in the development of more jobs and an increase in the economy’s revenue.

In the future, OFWs may eventually no longer need to return to their home country in order to support their families. The applicant’s choice of business will be determined by their interests, however, many are considering agriculture, farming, and service-related businesses such as dentistry clinics and restaurants.

1. Overseas Filipino Workers – Enterprise Development and Loan Program – EDLP Program

With the goal of staying in the country for good and no longer needing to work abroad again, OWWA offers a loan program to OFWs that aim to provide them some leverage and guidance on starting their own businesses in the Philippines, known as the Overseas Filipino Workers – Enterprise Development and Loan Program or the OFW-EDLP Program . This loan program is done in partnership with the Land Bank of the Philippines (LBP).

To avail of this loan, you first need to check if you are eligible by providing all of the documentary requirements for the program. Moreover, you need to attend an orientation seminar – the Enterprise Development Training (EDT) seminar .

Under this loan program, single proprietors can avail of a minimum amount of Php 100,000 up to Php 2,000,000 . Meanwhile, partnerships, corporations, and cooperatives can loan a minimum of Php 100,000 up to Php 5,000,000 .

2. HEROES Loan Program

With the advent of an unprecedented pandemic, the Philippine government and other private organizations have stepped up its services by offering a loan program intended to help repatriated OFWs who have lost their jobs during this time – the HEROES Loan Program . This is a loan program where you can borrow from PHP 10,000 to PHP 100,000 for a small business.

You might be wondering what HEROES means – and you are right to think it’s something related to OFWs, our modern-day heroes.  The acronym means Helping the Economy Recover thru OFW Enterprise Start-ups. It is a component program of the Department of Trade and Industry’s (DTI) Pondo Para sa Pag-asenso (P3) Fund. This HEROES loan is technically not an OWWA project, but OFWs and seafarers are still required to show OWWA certification or proof of being a repatriated OFW.

OWWA Calamity Loan

Calamities can strike anywhere, anytime. And when the unexpected (or unfortunate) happens, it’s reassuring to know that there’s something you can fall back on to get back on your feet. OWWA also offers financial assistance through the calamity cash assistance/financial aid . This can be availed of by active or non-active OWWA members or their families who do not qualify under any of the existing OWWA Social Benefit Programs and Services. The OWWA Calamity Assistance is available to OWWA members and their families who have been affected by natural or human-caused catastrophes.

OWWA Personal Loan

Here are some of the packages you can look into if you’re an OWWA OFW-member returning to the country and want to build a life in the Philippines.

Balik Pinas! Balik-Hanapbuhay Program

Balik pinay balik hanapbuhay program.

Another program aimed at returning/repatriated OFWs is the OFW Re-integration via Skills and Entrepreneurship (RISE) Program. Under this program, returning/repatriated OFWs, whether land- or sea-based, can take part in a series of FREE online training sessions , which include:

OWWA Loan for Seaman

There are no specific loans designated by OWWA for seafarers . Therefore, everything mentioned so far applies to all active members, whether land- or sea-based.  Moreover, as long as you are an OFW, regardless of whether you work on land or at sea, you are eligible for the abovementioned loan programs so long as you are an active OWWA member.

Sea-based workers (seafarers, seamen, etc.), on the other hand, have an exclusive program they can avail of – the Seafarers Upgrading Program (SUP) .

Advancing through technical skills training and certification programs will significantly boost your chances at getting promotions and placement for specialized roles on deck. This also translates to higher pay, better benefits, and more successful career tracks – all good news for you and your family!

OWWA Housing Loan

Currently, OWWA is offering just scholarships, cash assistance, welfare assistance, and livelihood programs.

VIDEO: How to Apply for OFW Loan from OWWA

Frequently asked questions:, 1. can i avail of any owwa loan programs even if i am still based overseas.

Yes. OWWA loans are available to active OWWA members who are also OFW certified. You must first obtain that certification, as it will be presented to Landbank as part of the requirements. So in case you are based overseas, here’s what you can do:

Also, you can inquire from the nearest POLO-OWWA office abroad where you are based if you have questions about OWWA programs and services.

2. Am I required to physically attend the Enterprise Development Training (EDT)?

3. how can i apply for an owwa loan.

You may apply for the OWWA loan for a livelihood by submitting the necessary requirements based on the project. Click this link for the OFW-EDLP Program  and this link for the HEROES loan program.

4. Can I apply for a loan even if I don’t have any properties under my name?

It makes no difference whether you’re a seafarer or a land-based worker. For all of your hard work and contribution to the country, the government gives benefits to Overseas Filipino Workers.

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• Business Loans

How To Write A Successful Business Plan For A Loan

Updated: Aug 18, 2022, 12:46pm

A business plan is a document that lays out a company’s strategy and, in some cases, how a business owner plans to use loan funds, investments and capital. It demonstrates that a business is already producing income and has a plan to continue doing so moving forward.

A successful business plan is well-written, realistic, concise and, most importantly, convinces financial institutions that approving your business for a loan is a smart choice.

Here’s what you need to know about each section of a business plan and how to write a plan that will earn a lender’s stamp of approval.

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What Does a Successful Business Plan Include?

A successful business plan outlines your entire business and effectively explains how it makes money and why it’s likely to succeed. This is especially important if you’re trying to get a small business loan .

The content of a business plan should vary from company to company, but there are a few common sections that will help lenders better understand your business and help you qualify for financing.

Executive Summary

An executive summary concisely summarizes your business plan—usually on one page. The goals of this section are to inform the reader about the business as a whole, summarize what is contained in the rest of the document and capture their interest. That said, the best use of this section may depend on the age of your business.

• Startups. Startup owners typically use the executive summary to discuss the business opportunity, their target market and their planned strategy for building the business. The section also may touch on relevant market competition. Startup companies in particular should use the executive summary to build a lender’s confidence in the business.
• Established businesses. Companies that have been in business for several years usually orient their executive summaries around past achievements and growth plans. In this case, the section may begin with the company’s mission statement and provide information about business operations and financials before outlining future goals.

Industry Analysis

The industry analysis section of a business plan defines the business’ industry and mentions current trends—with a focus on risks and opportunities. The section also informs the reader about how the industry works and where the business fits in the industry as a whole.

This section should start by defining the industry, as well as what products and services it provides, and what consumer demand it fulfills. Next, identify the most important influences in the industry. In the case of a bank, this may include applicable government regulations; for a clothing boutique, it may be consumer trends and budget.

The industry analysis should also define the company’s intended niche in the industry.

Market Analysis

The market analysis zooms into the specific market niche mentioned in the previous section. Market analysis aims to detail the segment of the broader market the business is intended to fit within. For example, a fashion brand or boutique may target high-income consumers.

Use this section to explain how the segment differs from the wider industry. In the fashion boutique example, a market analysis may reveal that high-income consumers in the fashion industry pay substantially more for brands that are considered exclusive.

Also, describe the size of your business’ niche and how it fits into the wider industry. This should include mention of how many existing businesses operate in this niche and how they target consumers.

Competitor Analysis

A competitor analysis explains what competitors in your niche do and informs the reader of the current market environment. Start with an overall assessment of your competitors. Then, discuss the most relevant competitors for your niche. When conducting a competitor analysis, ask yourself the following questions:

• Where do your ideal customers currently shop?
• How do these competitors differentiate themselves?
• How are competitor products and services priced?
• Why do customers choose those products or service providers?

Using the example above, many clothing boutiques compete by providing higher quality products or a unique, luxury shopping experience. If your store has a single location, your competitor might be another clothing store with a similar price-point or signature style.

Target Market Segmentation

In the target market segmentation, you’ll identify your business’ target market and describe how you will meet its needs. This section aims to instill confidence in the lender by providing a clear and objective strategy for building revenue.

Begin the section by informing how your products or services meet your shoppers’ needs. Next, explain how consumers can access your products or services—including a brief outline of your marketing strategy and how it is tailored to your target clients. Contrast this to your competitors’ strategy as defined in the previous section. After reading this portion of the business plan, the lender should know exactly how your business intends to compete.

Services or Products Offered

Use this section of the plan to explain what your business offers its ideal customers and to contrast your product and service offering to that of your competitors. Start by defining your product and service offering, including pricing. Also, inform the reader what equipment or materials you need to provide your products and services. For instance, a fashion apparel brand needs access to textile manufacturers.

Marketing Plan and Sales Strategy

Now that the lender understands what you offer, explain how you plan to market it in greater detail. This section outlines how you’ll attract and convince consumers to buy from you. The goal is to provide a flexible and realistic marketing and sales plan that convinces the reader you know how to attract consumers.

The sales strategy section of your business plan also should include the company’s revenue goals and explain how your marketing and sales department will achieve them. Provide in-depth details on the marketing and sales challenges you’ll face and how to overcome them. While this information is always relevant, it’s particularly important to lenders reviewing your loan application as they will want to know how you plan to make money.

Operations Plan

The operations plan details your company’s day-to-day operations. This detail-oriented section should comprehensively explain how your business will operate, beginning with a list of your company’s daily activities.

As a high-end clothing boutique, your daily operations may include:

• A manager reconciling sales receipts and inventory numbers
• Stylists researching future trends and sourcing new inventory
• A marketing team building an online and social media presence

Note: This section is more about your business’s daily processes rather than its organizational structure—which is the next section.

Management Team

Use the management section of your business plan to tell the lender who does what in the company and how they’re compensated. Help the lender better understand the people behind the company by including biographical and background information on the company’s owners and key executives.

The best way to present this information is often with an organizational flowchart. You can also include other information about the company in this section, like your mission statement and values.

Financial Plan

Your financial plan tells a prospective lender two things: how much you plan to spend each year and how much you’ll earn in revenue. This section is the most important for most businesses, as it can make or break a lender’s confidence and willingness to extend credit.

Always include the following documents in the financial section of your business plan:

• Cash flow statements
• Income statements
• Capital expenditure budgets
• Balance sheets

Most lenders ask established businesses for at least three years of financial data, and some may ask for five. Preferably, include as much financial data as possible. If you’re a startup, include estimated costs and projected revenue, and supplement your data with industry averages or financial data from competitors.

Exit Strategy

Your business plan should always include an exit strategy in case things go wrong or you simply decide to close up shop. This may include everything from taking on new partners to selling your business or even declaring bankruptcy. Having an exit strategy is another way to show lenders that you have thought about the risks involved with your business and are prepared for them.

The appendix of a business plan normally contains financial information and other documents the reader may need to gain a comprehensive understanding of the business. Established businesses typically include financial statements and projections, at a minimum. In contrast, a startup could include the research they conducted to make the business plan.

Also consider including relevant resumes, marketing materials, letters of recommendation or references. For ease, your appendix should have a table of contents directing lenders to the most important documents.

What Lenders Look for In a Business Plan

There are five things that lenders typically look at when making business lending decisions: character, capacity, capital, conditions and collateral. By understanding these key considerations, you can draft a business plan that speaks to a lender’s interests and concerns.

A business’ character includes subjective, intangible qualities like whether its owners are perceived as honest, competent or determined. Stated another way, lenders want to know that you are honest and have integrity. These qualities can be critical for evaluating candidates because most lenders don’t want to lend to someone they don’t feel they can trust.

To evaluate the character of you and your business, lenders look at your personal credit history as well as your business’ financial history. Use your business plan to bolster your character by including ample financial records, letters of recommendation and other relevant documents.

Lenders want to know that you have the ability to repay the loan. They evaluate this by looking at your business’ financial history to see how much revenue you have generated in the past and how much profit you have made.

Lenders might also judge your capacity based on your business’ financial projections as well as your personal credit history and household income. Where relevant, lenders look at your management team to see if they have the experience needed to grow your business or keep it on a path toward success.

When reviewing your loan application, lenders read your business plan to see how much money you need to borrow and how you will repay the loan. They also look at your financial statements to see how much cash you have on hand and how much debt you are carrying.

Likewise, lenders often prefer business owners who have made larger personal financial investments in their enterprises. A personal financial investment reveals your commitment to the business and demonstrates you have the resources to pay off a large loan.

Ultimately, a lender’s biggest concern is whether your business can realistically succeed. So, they judge your company’s chances of success using your business plan as well as current market conditions. A good business plan can improve your lender’s confidence by convincing the lender that market conditions and your business strategy increase your odds of success.

In some cases, lenders want to know that you have something of value that they can use to secure the loan. This can be property, equipment, inventory or even receivables. If you don’t have any collateral, lenders may still approve a loan if you have a good credit history and a solid business plan.

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Kiah Treece is a small business owner and personal finance expert with experience in loans, business and personal finance, insurance and real estate. Her focus is on demystifying debt to help individuals and business owners take control of their finances. She has also been featured by Investopedia, Los Angeles Times, Money.com and other financial publications.

• Mar 30, 2023

The Ultimate Guide to Writing a Business Plan for a Loan: A Step-by-Step Walk-Through

The Ultimate Guide to Writing a Business Plan for a Loan: A Step-by-Step Walkthrough

As a business plan specialist and expert business planner, I'm here to guide you through the process of writing a comprehensive business plan for securing a loan. Whether you're a start-up or an established business looking to expand, a well-crafted business plan is essential for impressing potential lenders and securing the funding you need.

In this extensive, 5,000-word article, I'll cover everything you need to know about creating a top-notch business plan that will boost your chances of loan approval. We'll go through each section in detail, providing you with practical examples and tips to optimize your plan for success. So, let's get started!

Executive Summary

The executive summary is the first and most critical section of your business plan. It's a brief overview of your entire plan, highlighting the key points and giving readers an insight into your business.

Key elements to include in your executive summary:

Business concept: Briefly explain your business idea, the products or services you plan to offer, and the target market.

Company overview: Provide essential information about your company, including its legal structure, location, and mission statement.

Management team: Showcase the expertise and experience of your management team, emphasizing their ability to lead the business.

Market opportunity: Describe the market demand, trends, and target audience, highlighting the opportunity for your business to succeed.

Financial highlights: Summarize your financial projections, including sales, profits, and cash flow.

Loan purpose: Clearly state the purpose of the loan and the amount you're seeking.

Remember, the executive summary is often the first thing lenders read, so make it engaging and informative to grab their attention.

Company Description

The company description section is where you provide a more in-depth look at your business. It should give readers a clear understanding of your company's purpose, goals, and competitive advantages.

Key elements to include in your company description:

Business history: If your company has an existing history, briefly describe its origins and milestones achieved.

Mission statement: Articulate the purpose of your company and the value you aim to provide to customers.

Objectives: Outline the specific goals you want to achieve with your business, both short-term and long-term.

Products and services: Provide a detailed description of the products or services you plan to offer, emphasizing the benefits they provide to customers.

Target market: Identify your target audience, specifying their demographics, psychographics, and buying habits.

Competitive advantage: Explain what sets your business apart from the competition and how you plan to maintain this edge.

Market Analysis

The market analysis section demonstrates your understanding of the industry, market, and competition. It's crucial to show lenders that you've done your homework and have a comprehensive understanding of the market landscape.

Key elements to include in your market analysis:

Industry overview: Provide a high-level view of your industry, including its size, growth trends, and key players.

Market segmentation: Break down your target market into smaller segments, identifying their unique needs and preferences.

Target market characteristics: Describe the specific characteristics of your target market, such as demographics, psychographics, and geographic location.

Market demand: Present evidence of market demand, using data on customer needs, market trends, and buying behaviors.

Competitor analysis: Evaluate your main competitors, analyzing their strengths, weaknesses, and market share.

SWOT analysis: Conduct a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) to assess your business's position in the market.

Marketing and Sales Strategy

In this section, outline your marketing and sales strategy to show lenders how you plan to attract and retain customers, as well as generate revenue. A well-defined marketing and sales strategy is crucial to demonstrate that you have a clear plan for growth and profitability.

Key elements to include in your marketing and sales strategy:

Marketing objectives: Define your marketing goals, such as brand awareness, lead generation, or customer retention.

Target audience: Reiterate your target market, emphasizing their needs and preferences.

Unique selling proposition (USP): Highlight your USP, the main reason customers should choose your products or services over the competition.

Marketing channels: Identify the marketing channels you plan to use, such as social media, email, content marketing, or paid advertising. Explain the rationale behind your choice of channels and how they align with your target audience.

Sales process: Describe your sales process, from lead generation to closing deals. Include details on your sales team structure, training, and compensation plans.

Key performance indicators (KPIs): List the KPIs you'll use to measure the success of your marketing and sales efforts, such as conversion rates, average deal size, or customer lifetime value.

Operations Plan

The operations plan section details the day-to-day activities required to run your business. It shows lenders that you have a clear understanding of the operational aspects of your company and the resources needed to support your growth.

Key elements to include in your operations plan:

Facilities: Describe your business's physical location, including its size, layout, and any equipment or machinery required.

Production process: If applicable, detail your production process, including the steps involved, quality control measures, and production capacity.

Supply chain: Outline your supply chain, identifying key suppliers, procurement processes, and inventory management practices.

Staffing: Explain your staffing requirements, including the roles, responsibilities, and qualifications of each team member.

Management structure: Provide an organizational chart, showcasing your company's management structure and reporting lines.

Legal and regulatory requirements: Identify any relevant legal or regulatory requirements, such as licenses, permits, or certifications needed to operate your business.

Financial Plan

The financial plan is arguably the most crucial section of your business plan when applying for a loan. It demonstrates your ability to manage finances, make informed decisions, and, ultimately, repay the loan.

Key elements to include in your financial plan:

Revenue projections: Estimate your future sales, breaking them down by product or service category and showing growth rates over time.

Expense projections: Forecast your expenses, including fixed costs (e.g., rent, utilities) and variable costs (e.g., marketing, salaries).

Cash flow statement: Provide a detailed cash flow statement, showing how cash will flow in and out of your business over a specified period (typically 12 months).

Profit and loss statement: Create a profit and loss statement that projects your business's profitability over time.

Balance sheet: Prepare a balance sheet that showcases your business's assets, liabilities, and equity.

Break-even analysis: Calculate the point at which your business will break even, meaning your revenues equal your expenses.

Loan repayment schedule: Detail your proposed loan repayment schedule, including the loan amount, interest rate, repayment terms, and projected date of full repayment.

The appendices section is where you can include any additional documents or supporting materials that are relevant to your business plan. These documents may provide further evidence of your company's viability and help strengthen your case for securing a loan.

Examples of items to include in the appendices:

Resumes of key team members

Product samples or prototypes

Market research data or surveys

Letters of intent or contracts with suppliers, partners, or customers

Intellectual property documentation, such as patents, trademarks, or copyrights

Relevant licenses, permits, or certifications

Writing a comprehensive business plan for a loan can seem like a daunting task, but with the right approach and guidance, it's an achievable goal. By following the step-by-step instructions outlined in this article, you can create a well-structured, persuasive business plan that will greatly improve your chances of securing the funding you need. Remember to:

Pay close attention to your executive summary, as it sets the tone for the entire plan.

Be thorough and detailed in your market analysis, showing a deep understanding of your industry and target audience.

Develop a solid marketing and sales strategy to demonstrate your ability to attract and retain customers.

Address the operational aspects of your business, including staffing, facilities, and supply chain management.

Present a robust financial plan, complete with projections and a loan repayment schedule.

By doing so, you'll showcase your expertise, commitment, and preparedness to potential lenders, significantly increasing the likelihood of obtaining the loan your business needs to grow and succeed.

In addition to following the steps outlined in this guide, consider seeking professional assistance from a business plan consultant or specialist to review and refine your plan. Their expertise can help you identify any areas that may need improvement and ensure that your business plan is optimized for success.

Finally, remember to continuously update your business plan as your business evolves. Regular updates will ensure that your plan remains relevant and accurate, providing you with a valuable roadmap for your business's future growth and development.

With dedication, persistence, and a well-crafted business plan, you can secure the funding you need to bring your business vision to life. Good luck, and here's to your success!

• Writing Your Business Plan
• Funding Your Business

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Table of Contents

What does a loan business plan include?

What lenders look for in a business plan, business plan for loan examples, resources for writing a business plan.

A comprehensive and well-written business plan can be used to persuade lenders that your business is worth investing in and hopefully, improve your chances of getting approved for a small-business loan . Many lenders will ask that you include a business plan along with other documents as part of your loan application.

When writing a business plan for a loan, you’ll want to highlight your abilities, justify your need for capital and prove your ability to repay the debt. 

Here’s everything you need to know to get started.

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We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

A successful business plan for a loan describes your financial goals and how you’ll achieve them. Although business plan components can vary from company to company, there are a few sections that are typically included in most plans.

These sections will help provide lenders with an overview of your business and explain why they should approve you for a loan.  

Executive summary

The executive summary is used to spark interest in your business. It may include high-level information about you, your products and services, your management team, employees, business location and financial details. Your mission statement can be added here as well.

To help build a lender’s confidence in your business, you can also include a concise overview of your growth plans in this section.

Company overview

The company overview is an area to describe the strengths of your business. If you didn’t explain what problems your business will solve in the executive summary, do it here. 

Highlight any experts on your team and what gives you a competitive advantage. You can also include specific details about your business such as when it was founded, your business entity type and history.

Products and services

Use this section to demonstrate the need for what you’re offering. Describe your products and services and explain how customers will benefit from having them. 

Detail any equipment or materials that you need to provide your goods and services — this may be particularly helpful if you’re looking for equipment or inventory financing . You’ll also want to disclose any patents or copyrights in this section.

Market analysis

Here you can demonstrate that you’ve done your homework and showcase your understanding of your industry, current outlook, trends, target market and competitors.

You can add details about your target market that include where you’ll find customers, ways you plan to market to them and how your products and services will be delivered to them.

» MORE: How to write a market analysis for a business plan

Marketing and sales plan

Your marketing and sales plan provides details on how you intend to attract your customers and build a client base. You can also explain the steps involved in the sale and delivery of your product or service.

At a high level, this section should identify your sales goals and how you plan to achieve them — showing a lender how you’re going to make money to repay potential debt.

Operational plan

The operational plan section covers the physical requirements of operating your business on a day-to-day basis. Depending on your type of business, this may include location, facility requirements, equipment, vehicles, inventory needs and supplies. Production goals, timelines, quality control and customer service details may also be included.

Management team

This section illustrates how your business will be organized. You can list the management team, owners, board of directors and consultants with details about their experience and the role they will play at your company. This is also a good place to include an organizational chart .

From this section, a lender should understand why you and your team are qualified to run a business and why they should feel confident lending you money — even if you’re a startup.

Funding request

In this section, you’ll explain the amount of money you’re requesting from the lender and why you need it. You’ll describe how the funds will be used and how you intend to repay the loan.

You may also discuss any funding requirements you anticipate over the next five years and your strategic financial plans for the future.

» Need help writing? Learn about the best business plan software .

Financial statements

When you’re writing a business plan for a loan, this is one of the most important sections. The goal is to use your financial statements to prove to a lender that your business is stable and will be able to repay any potential debt. 

In this section, you’ll want to include three to five years of income statements, cash flow statements and balance sheets. It can also be helpful to include an expense analysis, break-even analysis, capital expenditure budgets, projected income statements and projected cash flow statements. If you have collateral that you could put up to secure a loan, you should list it in this section as well.

If you’re a startup that doesn’t have much historical data to provide, you’ll want to include estimated costs, revenue and any other future projections you may have. Graphs and charts can be useful visual aids here.

In general, the more data you can use to show a lender your financial security, the better.

Finally, if necessary, supporting information and documents can be added in an appendix section. This may include credit histories, resumes, letters of reference, product pictures, licenses, permits, contracts and other legal documents.

Lenders will typically evaluate your loan application based on the five C’s — or characteristics — of credit : character, capacity, capital, conditions and collateral. Although your business plan won't contain everything a lender needs to complete its assessment, the document can highlight your strengths in each of these areas.

A lender will assess your character by reviewing your education, business experience and credit history. This assessment may also be extended to board members and your management team. Highlights of your strengths can be worked into the following sections of your business plan:

Executive summary.

Company overview.

Management team.

Capacity centers on your ability to repay the loan. Lenders will be looking at the revenue you plan to generate, your expenses, cash flow and your loan payment plan. This information can be included in the following sections:

Funding request.

Financial statements.

Capital is the amount of money you have invested in your business. Lenders can use it to judge your financial commitment to the business. You can use any of the following sections to highlight your financial commitment:

Operational plan.

Conditions refers to the purpose and market for your products and services. Lenders will be looking for information such as product demand, competition and industry trends. Information for this can be included in the following sections:

Market analysis.

Products and services.

Marketing and sales plan.

Collateral is an asset pledged to a lender to guarantee the repayment of a loan. This can be equipment, inventory, vehicles or something else of value. Use the following sections to include information on assets:

» MORE: How to get a business loan

Writing a business plan for a loan application can be intimidating, especially when you’re just getting started. It may be helpful to use a business plan template or refer to an existing sample as you’re going through the draft process.

Here are a few examples that you may find useful:

Business Plan Outline — Colorado Small Business Development Center

Business Plan Template — Iowa Small Business Development Center

Writing a Business Plan — Maine Small Business Development Center

Business Plan Workbook — Capital One

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U.S. Small Business Administration. The SBA offers a free self-paced course on writing a business plan. The course includes several videos, objectives for you to accomplish, as well as worksheets you can complete.

SCORE. SCORE, a nonprofit organization and resource partner of the SBA, offers free assistance that includes a step-by-step downloadable template to help startups create a business plan, and mentors who can review and refine your plan virtually or in person.

Small Business Development Centers. Similarly, your local SBDC can provide assistance with business planning and finding access to capital. These organizations also have virtual and in-person training courses, as well as opportunities to consult with business experts.

Business plan software. Although many business plan software platforms require a subscription, these tools can be useful if you want a templated approach that can break the process down for you step-by-step. Many of these services include a range of examples and templates, instruction videos and guides, and financial dashboards, among other features. You may also be able to use a free trial before committing to one of these software options.

A loan business plan outlines your business’s objectives, products or services, funding needs and finances. The goal of this document is to convince lenders that they should approve you for a business loan.

Not all lenders will require a business plan, but you’ll likely need one for bank and SBA loans. Even if it isn’t required, however, a lean business plan can be used to bolster your loan application.

Lenders ask for a business plan because they want to know that your business is and will continue to be financially stable. They want to know how you make money, spend money and plan to achieve your financial goals. All of this information allows them to assess whether you’ll be able to repay a loan and decide if they should approve your application.

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