Iloilo City eyes zero-interest loans for MSMEs

By Rjay Zuriaga Castor

ILOILO CITY — Micro, small, and medium enterprises in Iloilo City may soon gain easier access to capital through a proposed city-backed loan program offering interest-free, collateral-free financing to help businesses recover and grow.

Mayor Raisa Treñas-Chu has endorsed to the City Council the proposed Negosyo Credit Access for Resilient Enterprises, or Negosyo CARE, Program, which aims to provide entrepreneurs with access to capital without interest charges or collateral requirements.

“Just as we have emergency employment programs, we also want emergency loans for businesses. The city government is here to ensure that entrepreneurs do not incur additional costs when borrowing and that they have access to seed capital to grow their businesses,” Treñas-Chu said.

Treñas-Chu said the proposed program would provide MSMEs with working capital at minimal cost, allowing business owners to reinvest more of their earnings into expanding their enterprises instead of paying interest.

“The important thing is that they will pay only the principal amount, with no interest. Instead of spending a large portion of their income on interest payments, they can use that money to strengthen and expand their businesses. This will serve as seed capital for our MSMEs,” she said.

While eligibility requirements are still being finalized, Treñas-Chu said one of the primary qualifications would be possession of a valid business permit issued by the city government.

She said the city is also considering requiring applicants to have operated in Iloilo City for a minimum number of years to help ensure borrowers have stable operations and the capacity to repay their loans.

“We are studying whether the loans will be granted to groups or individuals. We are also reviewing the requirement on the minimum number of years a business has been operating in the city to prevent the program from being abused,” she said.

“If a business has been operating here for several years, it is more likely to be stable. It is not a fly-by-night business, and there is a greater likelihood that the borrower will repay the loan,” the mayor added.

Treñas-Chu said the City Legal Office is reviewing the program’s guidelines and documentary requirements to ensure adequate safeguards against abuse.

The proposed financing program would complement the city’s existing entrepreneurship initiatives, including the Uswag Negosyo Academy, which provides training in entrepreneurship, financial literacy, marketing, and business management.

A city government press release issued in June 2026 said the combined number of new and renewed business permit registrations had already matched the city’s full-year total for 2025, although no figures were provided.

Daily Guardian sought the figures from Treñas-Chu’s spokesperson, Joy Fantilaga-Gorzal, but had yet to receive a response as of this writing.

The mayor attributed the increase in business activity partly to the Nano Enterprise Incentives Ordinance, which provides incentives and support to micro-scale entrepreneurs.

The ordinance was enacted by the City Council on Dec. 12, 2025, and formally launched on Feb. 26, 2026.

Under the ordinance, qualified nano enterprises with startup capital of PHP 250,000 or less may receive graduated discounts on regulatory fees and local business taxes, along with training in merchandising, financial literacy, and business management.

Graduates of the city’s business training program may also receive an additional PHP 5,000 in seed capital assistance.

The ordinance has attracted at least 500 applications from aspiring nano entrepreneurs, reflecting growing interest in establishing businesses in Iloilo City.

If approved, the Negosyo CARE Program would further expand the city government’s support for MSMEs by addressing one of the sector’s biggest challenges—access to affordable financing—while encouraging entrepreneurship, job creation, and local economic growth.