Susan D. Villanueva | Ritz Angelica R. Alejandro | Maria Sharielle V. Sagad
With the goal to bring more accessible financing opportunities to Filipino inventors and continue assisting them with the commercialization of their inventions, an improved version of the Innovation and Technology Lending Program (“i-TECH 2.0”) was rolled out by the Department of Science and Technology’s (“DOST”) Technology Application and Promotion Institute (“DOST-TAPI”), in partnership with the Land Bank of the Philippines (“LandBank”) and the Philippine Economic Zone Authority (“PEZA”), allowing Filipino inventors and innovators to avail of interest-free loans to commercialize their inventions.
More Accessible Financing
To recall, DOST-TAPI and LandBank launched the first i-TECH Lending Program in September 2017, offering loans at a five percent (5%) annual interest rate, with zero-interest options limited to projects funded through DOST-TAPI’s Invention Guarantee Fund (“IGF”). Further, the first i-TECH Lending Program had a loan-sharing agreement wherein the funding was structured as follows: forty percent (40%) of the loan was provided by TAPI-IGF with zero interest, forty-five percent (45%) by LandBank at an interest rate of five percent and the remaining fifteen (15%) was the borrower’s equity.
In a key change from the original program, i-TECH 2.0 now offers loans at zero-interest. Further, the loan ceiling previously capped at Twelve Million Five Hundred Thousand Pesos (PhP12,500,000.00) has likewise been removed, allowing eligible borrowers to access funding based on the actual needs of the project, with up to eighty-five percent (85%) of the total project cost covered.
Streamlined Process
Additionally, the application processing has likewise been improved. From a step-by-step sequence involving separate evaluations by the Screening Committee, DOST-TAPI, and LandBank, the application processing will now be done concurrently. Otherwise stated, the technical, financial, and screening committee reviews will now run simultaneously, shortening the process time and making the structure simpler and faster.
Qualifications
In order to qualify for i-TECH 2.0, applicants must be registered Filipino-owned corporations or partnerships with active intellectual property (“IP”) rights, with at least one (1) year of validity and be engaged in commercialization activities at the time of the application. While registered business enterprises with active IP applications may apply, financial assistance will only be disbursed once the relevant IP registration is granted and said IP has at least one (1) year of remaining validity at the time of disbursement. Inventors must be either majority stockholders or managing partners of the applying entity.
As of this year, six (6) inventors have already benefited from i-TECH 2.0, with more to hopefully benefit as the DOST-TAPI has been encouraging more Filipino innovators to take advantage of the improved and upgraded loan system.
For more information, a complete list of requirements and comprehensive guidelines to avail the program is available at http://www.tapi.dost.gov.ph/call-for-proposals/i-tech.