The House Committee on Appropriations has endorsed for plenary approval two measures strengthening entrepreneurship and promoting a socialized microfinancing program for microenterprises in the country.
The measures are House Bill 5158, or the “Act Providing a Socialized Microfinancing Program for Microenterprises Thereby Promoting Entrepreneurship” and HB 3335, or “Act Promoting the Development of Entrepreneurship Skills Among Government Employees to Inspire Innovativeness and to Ensure their productivity even beyond government service.”
The measures were seen discussed at the plenary when session resumes on May 14.
HB 5158 seeks to provide Filipinos with an affordable, accessible and simple micro financing program for the country’s micro enterprises, especially in the poorest sectors.
The bill’s top feature is the creation of the Pondo sa Pagbabago at Pag-Asenso fund, or the P3. In fact, the short title of the measure is the “P3 Act.”
Eyed as beneficiaries of the P3 fund are microenterprises and entrepreneurs, including market vendors, agribusinessmen and members of cooperatives, industry associations and cooperators.
The measure mandates the Small Business Corp. (SB Corp.) as lead agency for the P3 fund, and will handle fund delivery through direct lending to microenterprises; wholesale lending to conduits, which shall on-lend to microenterprises; and provision of guarantees to loans granted by the banks to qualified P3 beneficiaries.
Once institutionalized, Rep. Karlo Alexei B. Nograles of Davao City, chairman of the appropriations committee, said the P3 will give prospective entrepreneurs a better source of capital than, say, informal moneylenders or loan sharks, including those who use the “5-6” lending system.
“Through this [law], the state will truly be a partner in growing one’s business or in simply helping make a good business idea come to fruition,” he added.
Meanwhile, HB 3335 intends to ensure the continuous flow of innovative and development-oriented government programs and projects for entrepreneurial development.
The bill targets the participation of government retirees, as well as employees, who are slated to retire from government service in five years. The measure provides that all government offices and agencies prepare and implement a post-service Government Service Entrepreneurship Development Program for their employees based on guidelines to be prescribed by the Civil Service Commission.