ILOILO City — The city government is moving to institutionalize an interest-free, collateral-free loan program for micro, small and medium enterprises (MSMEs), with Mayor Raisa Treñas seeking a local ordinance that would give small entrepreneurs easier access to capital without forcing them to rely on high-interest informal lenders.
Announcing the proposal during the city’s first-ever MSME Summit, Treñas said she has directed the Local Economic Development and Investment Promotion (LEDIP) Office to coordinate with the City Council in crafting an ordinance that will establish the financing program as part of the city’s long-term economic development strategy.
“We will be giving loans para sa aton MSMEs, and I want no interest and no collateral. Ara na ang kwarta, pangitaan lang sang paagi nga maipasar ini sa City Council para makabenepisyo dayon ang aton mga negosyante,” Treñas said.
The mayor said many small enterprises remain locked out of formal lending institutions because they cannot provide collateral, leaving them vulnerable to informal lenders that charge steep interest rates.
“Prices of goods continue to increase while operating expenses of MSMEs are also rising. Kun mangutang ka sa informal lenders, ang interest amo lang ang ginabayran mo. We want to provide an alternative that will truly help our entrepreneurs grow their businesses instead of merely paying off interest,” she said.
Treñas said the proposed financing initiative complements the city’s existing programs supporting local enterprises, including the Nano Enterprise Incentives Ordinance, which has already drawn around 500 applicants this year.
She also highlighted the continued expansion of the Uswag Negosyo Academy, which has produced more than 25 batches of graduates through training in financial literacy, merchandising, marketing, entrepreneurship and digitalization.
“My dream is to expand the academy beyond our public market vendors so that all MSMEs in Iloilo City can benefit from these trainings. We want our entrepreneurs not only to survive but to become more competitive,” she said.
Treñas added that the city’s business climate continues to strengthen, noting that business permit registrations — including new applications and renewals — as of June 2026 have already equaled the total recorded for the whole of 2025.
“That is a strong indicator that businesses continue to grow in Iloilo City. We will continue developing programmes, strengthening market linkages, improving access to financing and making it easier to do business because when our MSMEs succeed, Iloilo City succeeds,” she added.
Around 170 entrepreneurs are participating in the three-day Iloilo City MSME Summit, which brings together government agencies, financial institutions and industry partners to provide business training, financing opportunities and expanded market access under the theme, “Bridging MSMEs to Knowledge, Finance, and Markets.”/PN
