The Department of Trade and Industry (DTI) has launched a ₱1‑billion Youth Enterprise Fund (YEF) offering collateral‑free loans of up to ₱500,000 for Filipinos aged 18 to 30, aiming to empower young entrepreneurs and expand financial inclusion.
DTI Empowering Youth Entrepreneurs
Trade Secretary Cristina Roque states that the program aims to provide young entrepreneurs with accessible financing to start or expand businesses.
Powered by DTI’s financing arm Small Business Corporation (SBCorp), the program indicates the government’s drive to support youth‑led businesses and stimulate the Philippine economy.
Loans range from ₱30,000 to ₱500,000, with a one‑year grace period on both principal and interest, and repayment terms spread over three years.
Applications open July 27 via the Small Business Corporation (SB Corp.) mobile application, with support available through DTI’s 18 regional offices and 1,600 Negosyo Centers nationwide.
The Youth Enterprise Fund (YEF) is designed to remove financing barriers for young Filipinos who often lack collateral or credit history. Through collateral‑free loans, DTI seeks to encourage risk‑taking, innovation, and job creation among the youth.
The program’s goal is not only to provide capital but to foster a culture of entrepreneurship that contributes to national development, aligning with the government’s broader agenda of inclusive growth and digital transformation.
The program primarily benefits youth entrepreneurs, particularly those in MSMEs. It is expected to support ventures in agriculture, retail, technology, and creative industries.
DTI hopes to harness fresh ideas and energy among the youth to drive inclusive growth. Beneficiaries include young agripreneurs seeking to modernize farming practices, tech start‑ups developing digital solutions, and creative industry entrepreneurs producing content for global markets.
Looking for a Business Loan? Apply for YEF
Eligible applicants are Filipinos aged 18 to 30 who wish to start or expand a business.
Applicants must present a business plan, proof of age, and valid identification. Ineligible applicants include those outside the age bracket, individuals with existing loan defaults, or businesses that fail to meet DTI’s viability criteria.
The program is specifically targeted at youth entrepreneurs, ensuring that resources are directed toward those most in need of support.
Applications can be submitted through the SB Corp. mobile app. The process involves registering on the app, uploading required documents, and submitting a business plan.
YEF loan applicants must submit the following documentary requirements:
- Valid government-issued ID;
- Mayor’s Business Permit;
- Proof of bank account;
- Corporate documents (if applicable); and,
- A Business Plan detailing the implementation plan of the project.
Applications will be evaluated based on feasibility and potential impact. Successful applicants will receive loan disbursements directly through digital channels, ensuring efficiency and accessibility. Assistance is available at Negosyo Centers nationwide, providing guidance even for those in rural areas.
Market State of Youth-Owned Businesses
Youth‑owned businesses in the Philippines represent a dynamic but still under‑served segment of the economy.
According to the Philippine Statistics Authority (PSA) and the DTI’s MSME Development Plan, MSMEs account for 99.5 percent of all registered businesses, and within this group, a growing share is led by entrepreneurs aged 18 to 30.
Many of these ventures are concentrated in retail trade, food services, agribusiness, and increasingly in digital platforms such as e‑commerce and app‑based services.
Recent surveys also show that Filipino youth are highly entrepreneurial: a 2025 Global Entrepreneurship Monitor (GEM) report noted that nearly 40 percent of Filipinos aged 18–29 expressed intent to start a business within three years, one of the highest rates in ASEAN.
However, the same report highlighted that access to financing remains the most significant barrier, with young entrepreneurs often relying on personal savings, family support, or informal lending.
The market state reflects both opportunity and challenge. On one hand, the rapid growth of digital commerce—accelerated by pandemic‑era shifts—has lowered entry barriers for youth entrepreneurs.
Platforms like Lazada, Shopee, and TikTok Shop have enabled small businesses to reach national audiences with minimal capital. On the other hand, competition is intense, and without adequate financing, many youth‑led ventures struggle to scale beyond micro‑enterprise status.
Data from the BSP’s 2025 Financial Inclusion Survey shows that while account ownership among youth has risen to over 60 percent, only a fraction actively use digital financial services for business purposes.
This underutilization underscores the importance of programs like the Youth Enterprise Fund, which not only provide capital but also encourage formalization and integration into the digital economy.
The current state of the market is also shaped by vast economic trends.
The Philippines recorded strong loan growth in mid‑2026, with banks reporting the highest monthly loan disbursements in June. This indicates promising confidence in the economy and growing demand for credit.
This environment is favorable for youth entrepreneurs: access to affordable loans, combined with digital platforms, creates a pathway to scale businesses more sustainably.
Nationwide Support for the Modern Hustlers
Financing remains a challenge for the young businessmen and businesswomen, with many relying on personal savings or informal lending. The YEF addresses this gap by providing structured, affordable loans.
DTI has also previously launched initiatives such as the Pondo sa Pagbabago at Pag‑asenso (P3) program for MSMEs and the Negosyo Centers network providing advisory services.
The Youth Enterprise Fund builds on these efforts by focusing specifically on young entrepreneurs. Other programs, such as the Shared Service Facilities (SSF) initiative, provide equipment and technology to MSMEs, complementing the financial support offered by the Youth Enterprise Fund.
Programs such as Go Negosyo’s mentorship initiatives, TESDA’s skills training, and the Department of Science and Technology’s start‑up grants complement DTI’s efforts. The Department of Labor and Employment (DOLE) also offers livelihood assistance for young workers.
Hand in hand, these initiatives create an ecosystem of support for young entrepreneurs, combining financing, mentorship, and skills development.
Are Loans the Right Financing Choice?
The launch coincides with a surge in lending activity in the country.
Banks recorded the highest monthly loan growth in June 2026, revealing a strong demand for credit amid economic recovery. The BSP reported double‑digit growth in loans to production sectors, including MSMEs.
The Youth Enterprise Fund aligns with this trend, providing structured, affordable loans to a demographic often excluded from traditional financing. Through the integration of youth loans into the broader credit expansion, the program supports both individual empowerment and macroeconomic growth.
Loans can be a smart choice for Filipinos if used responsibly.
In the digital age, access to financing enables entrepreneurs to scale quickly, adopt technology, and compete globally.
However, security and compliance are essential to ensure that borrowing does not lead to financial vulnerability.
Digital tools allow borrowers to track repayments, manage cash flow, and make informed financial decisions. Responsible borrowing, combined with secure digital platforms, transforms loans from a risk into an opportunity.
Digital Tools are Must-Haves for the Modern Entrepreneur
Beyond enabling secure transactions, DOPAY encourages savings and informed financial decisions, making it a smart financial choice for young entrepreneurs.
As a BSP‑licensed Electronic Money Issuer (EMI) and Virtual Asset Service Provider (VASP), DOPAY ensures that every transaction is secure, empowering Filipinos to build businesses confidently in the digital economy.
Not just that, with DOPAY’s Refer & Earn program, Filipinos can unlock new doors for earning possibilities with every successful referral.
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