Davao City – To boost the growth of Micro, Small, and Medium Enterprises (MSMEs), the City Government of Davao, through the City Cooperative Development Office (CCDO), continues to offer a range of programs aimed at fostering entrepreneurial success and economic development.
Financial Assistance for Cooperatives
Under its Cooperative Financial Assistance Program (CFAP), the CCDO provides zero-interest loans to cooperatives. February Banate, CFAP Focal for the CCDO, emphasized the program’s role in enhancing the capacity of MSME cooperatives to contribute to the local economy.
“This program facilitates enhancement and growth of MSME cooperatives that will contribute to the improvement of the local economy,” Banate stated.
Micro and small cooperatives can borrow between P100,000 and P300,000, payable within three years, while medium and large cooperatives can access loans from P301,000 to P1 million, payable within two years. Since 2020, 45 cooperatives have benefitted from the CFAP.
Cooperatives interested in availing of the CFAP must submit a letter of intent, certification of no outstanding loan balance, and a project proposal. For guidance and application, cooperatives can visit CCDO’s district offices.
Support for Individual Cooperative Members
For individual cooperative members, the Cooperative Livelihood Development Program-Start-Up Capital Assistance (CLDP-SUCA) offers zero-interest financial assistance to help disadvantaged members establish or expand their businesses.
Edna Haspe, CLDP-SUCA Focal, highlighted the program’s focus on self-sufficiency.
“The program aims to promote self-sufficiency among identified marginalized cooperative members,” Haspe explained.
The CLDP-SUCA includes mandatory livelihood and financial literacy training, ensuring that members are equipped with the necessary skills before receiving assistance. “We provide them with livelihood training before granting financial assistance. In order to avail of the assistance, they first need to complete the training, and the business they plan to establish must be in line with the training they’ve completed,” Haspe said.
Under the program, individual members can borrow P10,000 to P20,000 for start-up capital, payable within one year. Those with existing businesses may avail of a working capital loan of P30,000 to P50,000, payable over three years. Both loans are offered at zero percent interest.
Since the program’s launch in 2021, 12 batches comprising 135 beneficiaries have received assistance.
To qualify, applicants must be Davao City residents, cooperative members, have completed CCDO-conducted skills training, maintain a good loan repayment record, and have no outstanding loans. Qualified members can coordinate with CCDO district offices for more information.
Empowering MSMEs Through Training
Beyond financial assistance, the CCDO provides livelihood and financial literacy training to cooperatives and their members. These initiatives equip participants with technical and vocational skills essential for running successful businesses.
The City Government of Davao’s commitment to fostering MSME growth demonstrates its dedication to empowering local entrepreneurs and strengthening the city’s economy. Interested parties are encouraged to reach out to the CCDO for details on how to access these transformative programs.