The Philippine government, recognizing Overseas Filipino Workers (OFWs) as "modern-day heroes," has established a comprehensive legal and institutional framework to facilitate their return and successful reintegration into the local economy. For an OFW looking to transition from foreign employment to local entrepreneurship, several key programs, incentives, and credit facilities are available under Philippine law.

I. Legal Basis: Republic Act No. 8042 and RA 10022

The primary legal mandate for OFW benefits is Republic Act No. 8042 (Migrant Workers and Overseas Filipinos Act of 1995), as amended by RA 10022. These laws mandate the state to provide adequate resources for the reintegration of migrant workers into Philippine society. This led to the creation of the NRCO (National Reintegration Center for OFWs), which serves as the primary hub for business assistance.

II. Financial Assistance and Credit Facilities

Capital is the most significant hurdle for starting a small business. The government addresses this through specialized loan programs:

OFW-Reintegration Program (OFW-RP): This is a joint initiative between the Land Bank of the Philippines (LBP), the Development Bank of the Philippines (DBP), and the Overseas Workers Welfare Administration (OWWA).
Loan Amount: Individual borrowers can typically access between ₱100,000 to ₱2,000,000. Group borrowers (partnerships/cooperatives) can access up to ₱5,000,000.
Interest Rate: Generally fixed at 7.5% per annum.
Purpose: Working capital or fixed asset acquisition for various sectors (agri-business, construction, franchising, etc.).
Helping Others Prosper through Entrepreneurship (HOPE): Managed by the Small Business (SB) Corporation under the Department of Trade and Industry (DTI), this program offers low-interest, collateral-free loans specifically for repatriated OFWs affected by global crises or conflicts.

III. Livelihood Grants

For those who may not want to take on debt immediately, there are non-refundable grant programs available:

Balik Pinas! Balik Hanapbuhay! Program: A package of livelihood support/assistance intended to provide immediate relief to displaced OFWs. It provides a maximum grant of ₱20,000 as start-up capital or for additional capital for an existing small business.
Education and Training Assistance Program (ETAP): While primarily for skills, it includes entrepreneurship development training which is a prerequisite for many loan applications.

IV. Tax and Customs Incentives

Under the Bureau of Customs (BOC) and the Bureau of Internal Revenue (BIR) guidelines, returning OFWs enjoy specific privileges:

Tax-Exempt "Balikbayan Boxes": Under the Customs Modernization and Tariff Act (CMTA), OFWs can send home or bring in "professional instruments and implements, tools of trade, occupation or employment" tax and duty-free, provided they are not in commercial quantities and are intended for the OFW's own use in their local business.
BMBE Registration: While not exclusive to OFWs, the Barangay Micro Business Enterprises (BMBE) Act of 2002 (RA 9178) is a critical tool for OFW start-ups. Registration as a BMBE provides:
Income tax exemption from the operation of the enterprise.
Exemption from the Minimum Wage Law (though employees still receive social security and health benefits).
Specialized windows for government financing.

V. Technical Support and Capacity Building

The Department of Trade and Industry (DTI), through its Negosyo Centers, provides localized support for OFWs:

Business Name Registration: Streamlined processing for starting a sole proprietorship.
7M's of Entrepreneurship: A framework provided to OFWs covering Mindset, Mastery, Mentoring, Markets, Money, Machine, and Models.
Go Negosyo Partnerships: Collaborative mentoring programs that pair returning OFWs with successful local entrepreneurs.

VI. Procedural Requirements

To avail of these benefits, a returning OFW generally needs to provide:

OWWA Membership: Active or even inactive status (depending on the program).
Certificate of Business Training: Often issued by the NRCO or DTI.
Passport/Seaman’s Book: To prove overseas employment history.
Business Plan: A viable study of the intended enterprise.

Summary Table: Key Benefits

Program / Law	Agency	Primary Benefit
OFW-RP	OWWA / LandBank	Loans up to ₱2M (Individual)
Balik Pinas!	OWWA	₱20,000 Cash Grant
RA 9178 (BMBE)	DTI / LGUs	Income Tax Exemption
CMTA (RA 10863)	BOC	Duty-free "Tools of Trade"
Negosyo Centers	DTI	Mentoring & Fast-track Registration