The Department of Science and Technology (DOST) and Land Bank of the Philippines have signed a memorandum of understanding (MOU) aimed at expanding financing access for startups, particularly those backed by government innovation programs.
The agreement, signed May 4 at Landbank Plaza in Malate, Manila, links DOST-supported startups to the bank’s lending facility under the LIFTING MSMEs program, providing an additional funding pathway beyond government grants.
“MSMEs are the backbone of our economy,” Landbank president and CEO Lynette V. Ortiz said. “They generate a lot of employment, sustain local industries, and anchor growth in our community. And yet, access to capital is scarce, and they always find it difficult to grow and expand because financing is limited.”
Startups assisted under DOST initiatives such as the Technology Innovation for Commercialization (TECHNiCOM) Program and the Startup Grant Fund (SGF) will be prioritized for referral to Landbank for possible loan financing. These firms are typically in early-stage development and require capital to scale operations beyond initial grant support.
Under the lending program, startups may access up to P500,000 in financing, while larger, more mature enterprises can secure higher loan amounts depending on growth stage, according to Landbank executive vice president Charlotte I. Conde.
DOST secretary Renato U. Solidum Jr. said the agency will assist startups in meeting lending requirements, including feasibility studies and application support.
“We will help MSMEs with the application procedure under the LIFTING MSMEs program. We have already been doing that. For example, when they avail of the SETUP program, there are feasibility studies. Now, the difference is that their source of funds will come from Landbank’s lending program,” he said.
The DOST has identified an initial pool of qualified enterprises from around 10,000 candidates, including startups already supported under its programs, for endorsement to the bank.
“The enterprises we will recommend to Landbank have been growing over time and closely supported by DOST. In essence, they now need capitalization so they can further expand and scale up,” said DOST undersecretary Sancho A. Mabborang.
Solidum said the initiative is aligned with the government’s push to strengthen the local startup ecosystem and generate jobs through innovation-driven enterprises.
“I know that this is not simply about earning money, but about improving the lives of our countrymen so they can have richer, safer, longer, and better-quality lives. We look forward to seeing Filipino enterprises succeed — not only here in the Philippines, but also globally,” he said.
