Young Filipinos with promising business ideas may soon receive the financial boost they need to get started, with loans of up to P500,000 available without collateral.
Applications for the government’s new Youth Enterprise Fund will open on July 27, 2026, through the Small Business Corporation’s mobile application.
For many young entrepreneurs, the biggest obstacle between a promising business idea and an actual business is not a lack of courage or creativity. It is the lack of capital and collateral required to secure financing.
A new government financing program aims to address that problem by allowing qualified entrepreneurs aged 18 to 30 to borrow from P30,000 to P500,000 without providing collateral.
Collateral is a valuable asset that a borrower promises to a lender as security for a loan. This may include property, a vehicle, equipment, or other assets that the lender may claim if the borrower fails to repay the loan.
For many young entrepreneurs who are just starting, providing collateral can be difficult because they may not yet own property or expensive business assets.
Under the Youth Enterprise Fund, no collateral is required. This means applicants will not need to pledge property or another valuable asset to secure the loan. However, approved borrowers must still follow the loan agreement and repay the amount according to the required schedule.
Department of Trade and Industry Secretary Ma. Cristina Roque announced the Youth Enterprise Fund, which will be implemented through the DTI’s lending arm, the Small Business Corporation or SB Corp.
Under the program, qualified young entrepreneurs may apply for financing ranging from P30,000 to P500,000.
The loan is intended to help young Filipinos obtain the capital needed to establish, operate, or expand a business, subject to SB Corp’s evaluation and final eligibility requirements.
Here are the initial details announced for the program:
| Program Detail | Information |
|---|---|
| Eligible age | 18 to 30 years old |
| Loan amount | P30,000 to P500,000 |
| Collateral | Not required |
| Payment term | Up to three years |
| Grace period | Up to one year |
| Applications open | July 27, 2026 |
| Application platform | SB Corp Money App |
| Implementing agency | Small Business Corporation |
| Initial program fund | P1 billion |
Qualified borrowers may be given a grace period of up to one year. During the approved grace period, borrowers will not be required to pay the loan’s principal and interest.
The loan may be repaid over a period of up to three years.
The grace period could provide young entrepreneurs with time to establish their operations, attract customers, and begin generating income before regular loan payments become due.
Applicants should still carefully review the final loan agreement, including the applicable interest rate, payment schedule, fees, and other conditions before accepting the financing.
Applications are scheduled to open on July 27, 2026, through the SB Corp Money App.
Interested applicants may visit the official Small Business Corporation website at sbcorp.gov.ph for access to the application platform and further announcements regarding the program.
The complete documentary requirements, qualification process, interest rates, and other loan conditions have yet to be detailed in the information initially released.
Applicants are advised to rely only on announcements from the DTI and SB Corp and to avoid individuals or pages asking for unofficial processing fees.
Roque encouraged young Filipinos not to allow fear or a lack of financing to prevent them from pursuing entrepreneurship.
“To the young entrepreneurs, this is for you. Huwag kayo matakot magsimula.”
The Youth Enterprise Fund is intended to make government financing more accessible to young people who may have viable business ideas but cannot meet the collateral requirements commonly imposed by traditional lenders.
More information about the eligibility requirements, permitted uses of the loan, interest rates, application process, and required documents is expected to be released through the official DTI and SB Corp platforms.
Source: Philippine News Agency, Department of Trade and Industry, and Small Business Corporation
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