DTI, Veterans Bank partner on EV, MSME financing

The Department of Trade and Industry and Philippine Veterans Bank have partnered to expand financing for electric vehicle adoption and provide more capital options for micro, small and medium enterprises.

The two institutions signed a memorandum of understanding Sept. 28 at the DTI central office in Makati City.

The partnership is intended to address one of the main barriers to electric vehicle adoption among transport operators: the upfront financing needed to replace combustion-engine vehicles.

It could also widen access to capital for MSMEs seeking to invest, modernize or participate in supply chains tied to renewable energy, electric mobility and international trade.

The agreement supports the DTI’s e-Transport Loan Program and other initiatives aimed at helping the transport sector transition to electric vehicles.

It will also cover financing opportunities for MSMEs involved in renewable energy and EV-related businesses.

Enterprises pursuing franchising and companies needing capital for import and export requirements may also be covered by the partnership.

Trade Secretary Cristina A. Roque said demand is growing among transport operators interested in replacing conventional vehicles with electric alternatives, but financing remains an obstacle.

“Many transport operators want to make the shift, but they need financing to do it. Through this partnership, we can connect more of them—from small operators to larger groups—with a bank that can help fund that transition,” Roque said.

Under the MOU, the DTI may refer prospective borrowers to Philippine Veterans Bank.

The DTI and the bank will also develop financing products tailored to business requirements and designed to complement programs already administered by the department.

Roque said access to financing could allow businesses to acquire more efficient vehicles, purchase equipment or obtain working capital to fulfill export orders.

“Access to capital is the true engine of enterprise growth and modernization. We need to ensure that flexible, accessible financing is within reach so our enterprises can take that next step,” Roque added.

The partnership also seeks to create more financing options for smaller enterprises that could become suppliers to expanding Philippine exporters.

The DTI and its financing arm, Small Business Corp., already provide financing support to MSMEs, but the department said partnerships with commercial banks can broaden the range of funding available as enterprises grow.

“Maraming opportunities for our MSMEs, especially as more Philippine products reach both local and global markets. We want to make sure they have access to the capital they need to grow and expand” Roque said.

The agreement links the government’s EV transition efforts with its broader MSME development agenda by using bank financing to support both vehicle acquisition and business expansion.

For transport operators, access to financing can determine whether the shift to electric mobility is financially feasible, while for MSMEs, additional credit options can support equipment purchases, working capital and entry into emerging industries.