Women-owned businesses get higher loan guarantees

Women-owned and women-led micro, small and medium enterprises (MSMEs) can obtain additional financing support under a new government initiative that raises loan guarantee coverage to help address barriers to credit access.

The Philippine Guarantee Corporation (PHILGUARANTEE) has launched a 60-day promotional program granting qualified businesses an additional five percentage points in guarantee coverage under its MSME Credit Guarantee Facility (MCGF).

The campaign, which runs from Oct. 12 to Dec. 10, 2026, raises the standard guarantee rate from 60% to 65%, subject to existing program limits. It also covers enterprises where the wife is the primary borrower.

The initiative is designed to encourage lending institutions to extend credit to more women entrepreneurs, particularly those who struggle to meet collateral requirements. PHILGUARANTEE provides credit guarantees that reduce lenders’ exposure to potential loan defaults, helping financial institutions serve borrowers who might otherwise have difficulty securing financing.

PHILGUARANTEE President and Chief Executive Officer Alberto Pascual said the program seeks to narrow financing gaps faced by women entrepreneurs and strengthen their participation in economic activity.

The corporation is also working with rural banks, financial institutions and cooperatives to promote gender-inclusive lending practices and incorporate Gender and Development principles into credit assessment processes.

The initiative is particularly relevant to rural women who operate agricultural enterprises, community businesses and microenterprises that contribute to local economic activity but may have limited access to formal financing.

Since 2020, PHILGUARANTEE has extended credit support to 54,446 women entrepreneurs, equivalent to 8% of women-owned businesses registered with the Department of Trade and Industry, according to the corporation.

The campaign supports President Ferdinand Marcos Jr.’s push to remove economic barriers and expand opportunities for women entrepreneurs.

By increasing guarantee coverage, the government aims to encourage wider access to business financing and help more women-owned enterprises sustain operations, expand their activities and contribute to employment and community development.