A NEW legislative proposal aims to significantly expand financial support to cooperatives and revitalize the local economy.
During the Pulong pulong on Tuesday, Councilor AL Ryan Alejandre said his proposal seeks to amend the allowable loanable amount to assist people’s organizations and cooperatives in the city.
“This is a big help, imagine zero interest that we will be imposing that could be a help to different cooperatives sectors such as farmers, fisherfolk, or regular small cooperatives in the city,” Alejandre said.
The Davao City Special Livelihood and Economic Program (DCSLEP) introduces zero-interest loan facilities tailored for micro, small, medium, and large cooperatives.
The proposed amendment focuses on increasing the loanable amounts, particularly for beneficiaries who have successfully complied with their initial loans and are applying for renewal.
A primary purpose of the proposal is to amend the Cooperative Financial Assistance Program (CFAP), implemented by the City Cooperative Development Office (CCDO).
Under the current guidelines, cooperatives categorized as micro and small cooperatives (assets up to ₱15 million) can access loans between ₱100,000 and ₱300,000 with a three-year repayment term, with a quarterly mode of payment.
Medium and large cooperatives (assets above ₱15 million) are eligible for ₱301,000 to ₱1 million with a two-year repayment period, a similar mode of payment for micro and small.
If approved, micro and small cooperatives could see their loanable amounts rise to P300,000 to P500,000, while medium and large entities could access up to P1 million to P2 million.
The proposal further seeks to institutionalize the “Mag-Negosyo Ta Day” (MTD) Program-Cooperative.
This program would be implemented across various agencies, including the City Cooperative, City Agriculture, and CSWDO.
Also in the proposed amendment, the new applicants under the MTD program would be eligible for P500,000 to P1 million, while those seeking renewals could access up to P2 million.
The loans feature zero interest and flexible payment schemes ranging from quarterly to annual installments secured via postdated checks.
The proposal also included a dedicated track for individual women beneficiaries, which allows individuals to borrow up to P50,000 through their cooperatives.
Repayment periods are set at six months for those in large cooperatives and twelve months for those in medium cooperatives.
While the institutional loans are interest-free, these individual loans will carry a 1% monthly interest rate payable to the cooperative.
At present, the cooperative members who already have their own business can only avail a working capital loan of P30,000 to P50,000, payable within three years.
Alejandre stressed the proposal is being ironed out with the CCDO and scheduled a meeting before April ends.
“This has been a plan of the Mayor to increase the loanable amounts, as inflation continues to increase, hence the amount is not sufficient as of this moment,” he said.
As of April 2026, there are a total of 151 accredited CSOs in the city, most of which are farmers and fisherfolk associations (75), cooperatives (38), and NGOs (38).
CSOs such as cooperatives, NGOs, and people organizations are required to apply for local accreditation to gain formal recognition from the city.
