How to apply business loan up to 5M to DOST-SETUP Program without interest

Want to upgrade your business or want to expand, buy new equipment but don’t have enough funds? The Governments especially DOST opens a program that will allow you to loan up to 5 million pesos with no interest charges.

This program was launch to support and sustain the growth of those micro, small and medium enterprise business (MSME’s) nationwide, The Department of Science and Technology has launche the Small Enteprise Technology Upgrading Program (DOST-SETUP).

It aims to assist and encourage businessmen to adopt technological innovations in order to boost their productivity and improve their operations as well as competitiveness. It provide additional fund to support technology acquisition, technical training, needed equipment and consultancy services, packaging and label design, support in the establishment of product standards and database information system.

Purpose of the Program

The Program enables MSMEs to address their technological requirements and limitations to improve productivity and efficiency through:

  • Infusion of appropriate technologies to improve/develop products, services and/or operations;
  • Human resource training, technical assistance and productivity consultancy services;
  • Design and execution of functional packages and labels;
  • Assistance for compliance to regulatory and market standards including testing services; and
  • Provision of financial assistance to facilitate acquisition of appropriate technologies.


ISS enables qualified MSMEs to have access to appropriate technology, equipment and technical assistance to improve production efficiency, product quality and improve their competitiveness.

Priority Sectors

The Program focuses assistance on the following priority sectors:

  • Food Processing
  • Furniture
  • Gifts, decors, handicrafts
  • Agriculture / Marine / Aquaculture
  • Metals and Engineering
  • ICT
  • Pharmaceuticals, health and wellness products


Innovation System Support (ISS) fund covers S&T interventions and/or technologies that satisfy the following criteria:

  • Introduce improvement in product quality, production processes and production efficiency such as mechanization, automation among others;
  • Enable MSMEs to comply with regulatory and specific market requirements;
  • DOST-developed technologies;
  • Packaging solution which covers execution of DOST-developed package/label design at appropriate volume;
  • ICT-based technology needed to improve/enhance firm operations.

Qualification for the Program:

Any MSME’s can apply for the program under the following conditions:

  • The company, cooperative, or association is solely owned by filipino citizens and is operating in the Philippines.
  • Any government entity (including state universities and colleges) operating business-like projects/activities (such as Common Service Facilities, innovation, incubation centers) for entrepreneurs/graduates of entrepreneurship.

Application Requirements :

  • Letter of intent to avail of SETUP assistance
  • Accomplished “Application for Technology Needs Assessment” Form
  • Project Proposal
  • Copy of business permits and licenses
  • Copy of Environmental Compliance Certificate (ECC) or Certificate of Non-Coverage (CNC)
  • Certificate of registration of business name
  • Board/Legislative Council resolution for corporations, cooperatives, non-single proprietorship, and LGUs
  • Financial statements for the past three (3) years with notarized Sworn Statement from the proponent
  • Projected financial statements for the next five (5) years
  • Complete technical specifications for equipment
  • Three (3) quotations from suppliers/fabricators for each equipment

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