ADB, GCash expand financing for MSMEs

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February 8, 2026 | 12:00am

With P1.75 billion loan

MANILA, Philippines — The Asian Development Bank (ADB) and the lending arm of GCash launched a partnership to expand financing for micro, small and medium enterprises (MSMEs) through a P1.75-billion loan.

The partnership between ADB and Fuse Lending Inc. was officially launched on Friday at the SMX Convention Center in Taguig, with over 250 sari-sari store owners and women entrepreneurs.

Through the loan facility approved by the ADB, Fuse will be able to expand its lending portfolio and provide access to credit for MSMEs and women-owned businesses, which are considered critical drivers of economic growth.

MSMEs account for around 40 percent of the country’s gross domestic product and 63 percent of total employment.

As part of the initiative, the Mastercard Impact Fund, with support from the Mastercard Center for Inclusive Growth, also extended funding to help Fuse reach priority MSME segments.

Under the partnership, the ADB will also provide up to $125,000 in technical assistance to help Fuse come up with financial products and deliver financial and digital literacy training tailored for women, especially those with limited formal education.

“This fintech partnership is the first-of-its kind for ADB in the ASEAN region and marks a significant step in advancing financial inclusion in the Philippines,” Isabel Chatterton, director general for private sector operations at the ADB.

According to an ADB study, access to credit and capital is the second top challenge for MSMEs, next to access to markets.

With access to finance being a challenge, it takes less than a year for a small business to shut down operations.

“By combining Fuse’s digital reach with ADB’s development financing, we are building an inclusive digital financial ecosystem that expands access to finance for women-led and rural enterprises across the country,” Chatterton said.

Martha Sazon, president and CEO of GCash parent firm Mynt, said that the partnership strengthens the digital wallet’s ability to expand access to credit for MSMEs and women entrepreneurs that are currently underserved by the market.

“By combining our shared expertise and digital reach, we are advancing financial inclusion and helping more Filipinos grow their businesses,” she said.

For his part, Fuse president and CEO Tony Isidro emphasized the importance of the partnership in advancing their aim to deliver fair loans and expand access to inclusive credit.

“Through our partnership with ADB, with additional support from the Mastercard Impact Fund, we are strengthening our mission to make credit accessible to every Filipino who needs it most,” Isidro said.

“This investment enables us to accelerate our support for women entrepreneurs and small businesses in underserved areas, sectors with immense potential to drive the country’s long-term growth,” he added.

Trade Secretary Cristina Roque said the partnership would ensure that entrepreneurs who are ready to grow, but have long been underserved by traditional systems, would get access to capital.

“By aligning public-sector priorities with private-sector innovation, this collaboration helps widen the path to formal, fair and sustainable access to finance for MSMEs,” Roque said.