Private businesses in Visayas and Mindanao having difficulty accessing commercial financing have the reason to rejoice for they have now the opportunity to get a grant that can be used to expand their business or diversity into a new line of business. Thanks to the Enterprise Challenge Fund (ECF) worth P640 million offered by the Australian government.

Any private enterprise could qualify to avail of the grant, except projects that involve alcohol, tobacco and gambling. Bidders also need to be able to prove that they are having difficulty obtaining commercial funding for the project. Government-owned and controlled corporations, local government units and non-governmental organizations are not qualified, but NGOs and LGUs may be partners in a consortium led by a business firm.

ECF would grant financing only to business projects implemented in Visayas and Mindanao. It will provide funds at a maximum of 50 percent. It can be also 10 or 20 percent depending on the enterprise’s financial position. They will take the risk and the entrepreneur will also take the risk. If an entrepreneur is putting in 50 percent of the cost, it’s a great assurance that the entrepreneur do justice to the business.

This concept of the Australian Agency for International Development (AusAID) is the first of its kind in the Asia and the Pacific. In this scheme, the business projects can be funded, and the best project wins.