Philippine Guarantee Corporation (PhilGuarantee) Acting Department Head for Priority Sectors Guarantee Group Gina Banaag and Senior Vice President and Group Head, Priority Sectors Guarantee Group Celso Gutierrez, with Visa Philippines Country Manager Jeffrey Navarro and Head for Visa Government Solutions, Regional Southeast Asia Bella Lai.
Visa has signed a memorandum of understanding (MOU) with the Philippine Guarantee Corporation (PhilGuarantee) to strengthen financial inclusion and expand credit access for micro, small, and medium enterprises (MSMEs).
Under the partnership, Visa and PhilGuarantee will explore the rollout of credit guarantee schemes to help MSMEs secure financing from partner lending institutions. The collaboration will also support digitization initiatives and capacity-building programs to improve financial literacy and operational efficiency among small businesses.
The initiative will tap Visa Government Solutions, which provides digital tools for disbursement programs, payment acceptance, and financial education—designed to streamline financial processes and empower underserved sectors. PhilGuarantee, an attached agency of the Department of Finance, plays a key role in implementing accessible guarantee systems across government priority sectors.
MSMEs form the backbone of the Philippine economy, accounting for more than 1.2 million enterprises and over 66 percent of national employment. Yet, they face persistent barriers in accessing capital. A Visa study revealed that 44 percent of MSMEs identify cash flow as a top challenge, with more than half saying their reserves would last less than six months. Notably, less than 10 percent of corporate loans in the Philippines go to MSMEs, underscoring the sector’s significant funding gap.
Beyond the Philippines, Visa has committed $100 million through its Visa Foundation Small Business Accelerator initiative to support SMEs across Asia Pacific. The program aims to increase access to capital, create jobs, and strengthen digital inclusion, complemented by Visa’s Practical Business Skills platform that helps entrepreneurs manage cash flow, integrate digital payments, and plan for long-term growth.
“Our collaboration with PhilGuarantee reiterates our support to the government’s vision of expanding financial inclusion,” said Jeffrey Navarro, Visa Country Manager for the Philippines. “MSMEs are vital contributors to economic growth, and they deserve financial solutions that truly respond to their needs.”