How to apply for a business loan up to P5 million through DOST-SETUP without paying interest
Lacking sufficient finances, do you wish to expand your company or buy new equipment? The government, in particular DOST, has launched a program that enables interest-free loans of up to 5 million pesos.
The Small Enteprise Technology Upgrading Program was launched by the Department of Science and Technology to assist and sustain the growth of those micro, small, and medium-sized businesses (MSME’s) across the country (DOST-SETUP).
It aims to help and motivate businesspeople to adopt technological innovations in order to increase their productivity, enhance their business processes, and become more competitive. Additional funding is made available to support the purchase of technology, technical training, necessary tools and consulting services, packaging and label design, assistance with the creation of product standards, and database information systems.
The Program’s Goals
The Program gives MSMEs the opportunity to address their technology needs and constraints in order to increase productivity and efficiency by
introduction of pertinent technologies to develop or improve operations, services, or goods;
training for human resources, technical support, and consulting services for productivity;
creating and implementing practical packaging and labelling;
includes testing services, assistance with compliance with regulatory and market standards; and
offering financial aid to make it easier to purchase the right 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.
The Program focuses assistance on the following priority sectors:
Gifts, decors, handicrafts
Agriculture / Marine / Aquaculture
Metals and Engineering
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;
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
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