QuestionsQuestions (OWWA MEMORANDUM OF INSTRUCTIONS NO. 01, S. OF 2009)
The FELSF is a supervised and direct lending facility under the Livelihood Development Program of the Overseas Workers Welfare Administration (OWWA) that serves as an economic safety net for displaced Overseas Filipino Workers (OFWs) and their families due to the global economic crisis.
The main objective is to provide credit assistance and facilities for entrepreneurial activities to displaced OFWs to improve their economic productivity, strengthen entrepreneurial capabilities, and provide self-employment opportunities.
Only Overseas Filipino Workers (OFWs) and their family members displaced at country-worksites abroad due to the global financial crisis, who are OWWA members and meet the program requirements, are eligible.
The maximum loanable amount is Fifty Thousand Pesos (PhP50,000.00) per qualified borrower, with an interest rate of five percent (5%) per annum, payable within 24 months with a 90-day grace period.
Borrowers must have completed Phase I of the Department of Labor and Employment (DOLE) Livelihood Package, which includes business counselling and skills training through the National Reintegration Center for OFWs (NRCO).
The borrower must provide proof of OWWA membership, proof of displacement, a business proposal, financial statements if applicable, a promissory note, and marital consent if married.
Loans are released after RWO validation, with disbursement vouchers prepared by ROCS, and funds are released based on business needs, including staggered disbursements and direct payment to suppliers for machinery purchases.
Borrowers are oriented on the importance of the business proposal, the terms of the promissory note including payment commitments in case of redeployment, and the repayment schedule.
Repayments are collected by the Regional Welfare Offices through various modes and recorded in a designated cash book. Payments are deposited in the OWWA FELSF account, with reminders, follow-ups, and legal measures for delinquent accounts.
Loan restructuring may be recommended and granted in cases of natural and man-made calamities, illness, or accident, but is denied for mismanagement of business operations or fund diversion, with extensions requiring OWWA Administrator approval.