The Overseas Workers Welfare Administration (OWWA) on Tuesday started an easy lending program for overseas Filipino workers displaced by the global financial crisis.

OWWA Administrator Carmelita S. Dimzon said displaced OFWs could borrow up to P50, 000 from OWWA to start a business or expand a livelihood project. She said the loan is available at low interest, no collateral, and payable over 24 months after a grace period of 90 days, interest-free.

Applications may be filed with the family welfare officer at the Regional Welfare Office of OWWA.

 Administrator Dimzon made the announcement during the releases of loans to the first four borrowers of the lending program or the Filipino Expatriate Livelihood Support Fund (FELSF). The four borrowers were Lilia Camacho of Pasig City; Vedasto Marmol, Jr., of Malabon; Maria Garces of  Tanza, Cavite; and Rose Ann Bucao of General Trias, Cavite.

Administrator Dimzon said that more FELSF loan releases have been scheduled within the next few days in other regions.

 As an economic safety net, the FELSF was allocated P100 million by the OWWA board of trustees.  The guidelines and procedures were approved by the OWWA board of trustees earlier this month. 

 Dimzon said that OFWs must first attend free business courses on the production and management of their livelihood projects to borrow from the FELSF.

Loan requirements include proof of OWWA membership, proof of displacement due to the global financial crisis, business proposal, and financial statements where the OFS and/or families have existing businesses, promissory note, and marital consent for married borrowers.

The Department of Labor and Employment defined an OFW displaced due to the global financial crisis as one terminated on or after October 15, 2008.  The reasons for termination are closures or downsizing of their companies as a result of the crisis.

The National Reintegration Center for OFWs and the OWWA Regional Welfare Offices will endorse or pre-qualify OFWs as a displaced OFWs based on the following:

(1) inclusion of the name of applicant in the list of displaced OFWs provided by Philippine Overseas Labor Offices to appropriate DOLE agencies;
(2) upon validation of the information directly with the POLOS;
(3) upon interview and validation personally with the applicant to prove that his/her displacement is due to the global financial crisis.

If loan applications are complete with required documents, OWWA will immediately act on loan applications upon submission.  Attendance in the free business courses is a pre-qualifying phase.
The FELSF is the second component of the integrated livelihood program of the Department of Labor and Employment for displaced OFWs due to the global financial crisis.

The first component is the Livelihood and Enterprise Development Assistance for Displaced OFWs.  This is under the National Reintegration Center for OFWs (NRCO).  It consists of a package of assistance and services of DOLE.  It includes business mentoring services, business skills training, and assistance in acquiring raw materials, equipments, tools and jigs.

Training centers are accredited co-partners (ACPs) of the Department of Labor and Employment.  They included the Technology Resource Center (TRC), an agency of the Department of Science and Technology, and Dream Incorporated. DOLE is funding the training courses, including trainors, teaching materials and raw materials and equipment.