How to Apply for SBCorp Business Expansion Financing

Business Expansion Financing is a loan program offered by Small Business Corporation (SBCorp), the financing arm of the Department of Trade and Industry (DTI), to help young MSMEs grow by giving them extra funds for inventory, equipment, operating costs, or new product lines. It supports businesses that are still less than a year old but already showing real sales, making it easier for owners to continue building momentum. 

Knowing how to avail it matters because early-stage businesses often struggle with cash flow, and this program offers low-cost financing with flexible terms that can ease those growing pains. If you’re still finding your footing and need funds to grow, this guide will walk you through what the program offers, who can apply, the requirements, and the exact steps to submit your application so you can access the support you need to strengthen and expand your business operations.

Program Overview

The SBCorp Business Expansion Financing Program is a government loan program designed to help newly established MSMEs who want to expand or strengthen their operations. It supports businesses that have operated for 3 to 11 months and have shown at least three months of actual sales. It was designed to make financing more reachable for Filipinos who want to grow their business but struggle with traditional bank requirements. The program also supports MSMEs with the potential to generate more jobs, launch new products, or expand their services.

It was meant to soften the following problems that new business owners often face:

• limited working capital
• slow sales during the first few months
• rising supply and operating costs
• difficulty accessing bank loans
• unpredictable cash flow

With its offer of low-cost financing, flexible payments, and a long grace period, business owners can focus on growing instead of worrying about immediate loan pressure. By supporting new MSMEs, the government hopes to create more jobs, strengthen local economies, encourage innovation, and give Filipino entrepreneurs a fair chance to grow.

Features

Here’s what the SBCorp Business Expansion loan offers:

• Loan amount: PHP 50,000 to PHP 3,000,000
• Interest:
  • 0% interest for the first 12 months
  • 1% per month on diminishing balance after the first year
• Loan term: Payable monthly for up to 3 years
• Grace period: Up to 6 months (optional)
• Purpose: For expansion, operating expenses, or capital needs

These features are designed to give new MSMEs enough breathing room to grow before regular payments fully kick in.

Target Beneficiaries

This program is designed for:

• Newly established MSMEs with 3 to 11 months of operations
• Micro businesses that have already recorded at least three months of actual sales
• Small and medium enterprises trying to widen production or service offerings
• Startups shifting from soft launch to regular operations
• Online sellers who want to scale up their inventory or upgrade their tools
• Home-based businesses needing funds for equipment, supplies, or workspace improvements
• Retail shops planning to increase stock or open a second booth or kiosk
• Food businesses (carinderia, food carts, small cafés, catering startups) wanting to expand menus or buy more equipment
• Service providers (salons, repair shops, cleaning services, wellness services) aiming to boost capacity
• Manufacturing or production micro-enterprises adding new machines or increasing output
• Businesses exploring new products or services to reach wider markets
• MSMEs with high-employment potential, especially those looking to hire more staff

This program also welcomes solo entrepreneurs, partnerships, and corporations.

Who Can Apply?

You can apply if your business meets all of the following:

• Your business is 3 to 11 months old
• You have at least three months of proven sales
• You are registered as an MSME
• You are operating a new or emerging business
• You want to expand your products, services, or production
  

Is This Program Good for You?

You may find this loan program helpful if:

• your business is still young
• you need funds to expand or stabilize operations
• you cannot qualify for bank loans
• you want flexible payment terms
• you prefer a long grace period to help manage your early expenses

Simply put, if your business is ready to grow but your cash flow isn’t, this loan can serve as a bridge between where you are and where you want to go.

Documentary Requirements

To apply, you need to prepare the following documents:

General Requirements

• Government-issued ID
• Mayor’s Business Permit
• DTI or SEC Registration
• Proof of Bank Account
• Corporate documents, if applicable
  

Financial Performance Assessment

• Business Plan
• Proof of Sales
  

These documents help SBCorp understand your business activity, stability, and potential to grow.

Step-by-Step Guide

Here is a simple and clear way to apply:

Step 1. Check if you qualify

Before preparing anything, confirm that your business meets the eligibility requirements. If yes, you can move forward.

Step 2. Prepare all required documents

Gather your IDs, permits, registrations, business plan, and proof of sales. This helps you avoid delays in the online application.

Step 3. Register or log in to the SBCorp Borrower Registration System

Visit: https://brs.sbcorp.ph. If you already have an account, log in. If not, register using your basic personal and business information.

Step 4. Fill out the online loan application

You will be asked for:

• your business background
• your sales information
• your expansion plans
• your preferred loan amount
• your preferred loan term and grace period

Be honest and complete every field.

Step 5. Upload your documents

Upload clear photos or scanned copies of all required documents listed above. Avoid blurry or cropped images to prevent delays.

Step 6. Wait for the evaluation

SBCorp will review your application and documents. Processing time varies depending on the number of applicants and completeness of your files. You may be asked for clarifications or additional documents.

Step 7. Receive approval and sign the loan agreement

When approved, SBCorp will guide you through:

• signing the loan agreement
• understanding payment terms
• confirming your loan release schedule

Read everything carefully so you know your responsibilities.

Step 8. Claim your loan release

Once all requirements are done, your loan will be released to your bank account. You may now use the funds to:

• buy inventory
• add equipment
• expand operations
• pay for rent, supplies, or other operating needs
  

Where to Apply

SBCorp accepts applications through the Borrower Registration System (BRS). This online portal is open nationwide, allowing MSMEs from any part of the Philippines to apply without visiting a physical office.

Tips to Increase Your Chances of Approval

While SBCorp does not require collateral for this program, they still check if your business is active and capable of using the loan responsibly.

Here are helpful tips:

• Keep your sales proof complete and updated.
• Write a clear and practical business plan.
• Make sure all your business permits are renewed and valid.
• Use one consistent email and contact number for easier communication.
• Double-check your uploaded documents before submitting.

A clean and well-prepared application often gets processed faster.

Video: SBCorp Business Assistance

The SBCorp Business Expansion Financing Program gives new business owners a chance to strengthen and grow their operations without drowning in heavy interest or strict bank requirements. If your business is 3 to 11 months old and you have at least three months of sales, this program can help you expand with more confidence and less strain. So, if you want your business to reach the next level but need financial support, watch this video to learn more: