DTI and First Circle Renew Partnership to Support ASEAN's Next Generation of MSMEs

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As the Philippines prepares to host ASEAN in 2026, First Circle and the Department of Trade and Industry (DTI) have renewed their Memorandum of Understanding, extending their partnership from 2026 to 2028 and reaffirming their shared commitment to building stronger, more competitive MSMEs across the region.

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The renewal coincides with the 2026 National MSME Week, observed every second week of July under Republic Act No. 9501 in recognition of the vital role of MSMEs in creating jobs, generating income, and driving economic growth. This year's celebration carries the theme, "Navigating the Shift: Building Resilient and Future-Ready MSMEs" a fitting backdrop for a partnership built on preparing Filipino enterprises for the future.

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The fourth renewal since the partnership began in 2018 comes at a pivotal moment for Southeast Asia. MSMEs form the backbone of ASEAN economies, yet access to financing remains one of the biggest barriers to their growth. In the Philippines, SME credit penetration remains among the lowest in the region, leaving countless capable businesses without the working capital they need to scale and compete.

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For DTI Undersecretary Blesila Lantayona, the continued collaboration demonstrates how government and fintech institutions can work together to close that gap.

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"As we renew this collaboration for the fourth time, we recognize its growing contribution not only to the Philippine MSME sector, but also to the broader ASEAN vision of fostering a more innovative, competitive, and inclusive regional economy," she said.

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Aligned with the MSME Development Plan 2023-2028, the partnership seeks to strengthen financial inclusion, accelerate digital transformation, and enable enterprises to participate more actively in regional and global value chains, where access to timely, flexible financing is essential.

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Lantayona highlighted the role fintech partnerships play in reaching businesses underserved by traditional lenders.

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"Traditional financing channels may not always be accessible to small enterprises due to collateral limitations, lengthy processes, or lack of credit history. Fintech institutions help address these barriers by offering more agile, technology-driven, and inclusive financial solutions."

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Since partnering with DTI in 2018, First Circle has grown into one of the country's leading providers of SME financing, disbursing approximately ₱25 billion to thousands of Philippine SMEs, over two-thirds of them accessing formal credit for the first time helping businesses build resilience even through the difficult years of the pandemic.

The renewed agreement also comes as First Circle significantly expands the capital it can deploy. Asia United Bank (AUB) has approved a fourfold upsize of the company's credit line from ₱500 million to ₱2 billion (approximately USD 33 million), following First Circle's landmark partnership with the International Finance Corporation (IFC), a member of the World Bank Group, for a securitization facility of up to USD 110 million, the IFC's first such transaction in the Philippines. Together, these facilities channel a substantial pipeline of new capital toward underserved SMEs poised to benefit from deepening ASEAN integration.

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The renewal caps a milestone year for First Circle, which celebrated its 10th anniversary last March 17. Entering its second decade with four DTI partnership renewals, expanded bank facilities, and a landmark IFC collaboration, the company is deploying more capital than ever toward a more resilient, innovative, and globally competitive ASEAN business community.

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