By Billy Begas
The House Committees on Appropriation and on Micro, Small, and Medium Enterprise Development have approved the measure seeking to extend for 10 years the law mandating banks to allocate 10 percent of its loanable funds to Micro, Small and Medium Enterprises (MSMEs).
The still unnumbered measure, authored by Deputy Speaker Bro. Eddie Villanueva and CIBAC Rep. Domingo Rivera seeks to amend the Magna Carta for Small Enterprises (Republic Act 6577).
Under the law, all lending institutions are mandated to set aside at least eight percent for Micro and Small Enterprises and at least two percent for Medium Enterprises their total loan portfolio. The provision lapsed in 2018.
Villanueva said based on data from the Bangko Sentral ng Pilipinas, as of March 2019, banks allocate a meager 2.72 percent of their loan portfolio to micro and small enterprises and 4.19 percent to medium enterprises.
“We owe our MSME sector a great deal. This bill is for them; karapat-dapat sila. It is only apt that we invest in them by ensuring availability of access to credit and government assistance and programs. They are our economy’s unsung heroes, comprising 99% of firms in our economy,” said Villanueva.
Other significant provisions of the proposals are as follows:
– National Government shall allocate at least 10% of its procurement needs to eligible MSMEs;
– Entitlement of registered MSMEs to 20% discount on shipping, delivery fees, mailing, freight, and other similar services for products and raw materials provided by either public or private
– 20% of total rentable spaces of private malls allocated for MSMEs at a 20% discount on rental payment;
-At least one percent of the total space available in all government buildings, structures, and open areas allotted for selling area of MSMEs
-At least 0.5 percent for every 5,000 square meters in private malls, supermarkets, shopping centers, commercial selling establishments, structures, or areas allotted for selling area to MSME stores