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Republic of the Philippines  
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House of Representatives 
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Quezon City 
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TWENTIETH CONGRESS 
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First Regular Session 
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House Bill No. __________ 
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Introduced by Representative Jernie Jett V. Nisay 
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EXPLANATORY NOTE 
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Micro and small enterprises (MSEs) play a vital role in driving local economies and 
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creating jobs, yet many struggle to access affordable financing. This often forces them to rely 
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on informal lenders with high interest rates, hindering their growth and sustainability. 
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This bill establishes the Pondo sa Pagbabago at Pag-asenso (P3) Fund to provide low-
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interest, collateral-free loans to MSEs, particularly in underserved areas. It mandates the Small 
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Business Corporation (SB Corp.) to manage the fund through direct lending and accredited 
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partners, with strict oversight and regular reporting to ensure transparency. 
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By creating an accessible and sustainable financing program, this measure aims to 
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empower small entrepreneurs, reduce poverty, and promote inclusive economic growth. 
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Support for this bill is earnestly requested from my colleagues. 
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      REP. JERNIE JETT V. NISAY 
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        Pusong Pinoy Partylist 
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September 10, 2025
3:58 pm
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Republic of the Philippines 
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House of Representatives 
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Quezon City 
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TWENTIETH CONGRESS 
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First Regular Session 
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House Bill No. __________ 
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Introduced by Representative Jernie Jett V. Nisay 
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AN ACT 
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PROMOTING ENTREPRENEURSHIP BY ESTABLISHING A SUSTAINABLE 
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FINANCING PROGRAM FOR MICRO AND SMALL ENTERPRISES THROUGH 
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THE PONDO SA PAGBABAGO AT PAG-ASENSO PROGRAM, AND 
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APPROPRIATING FUNDS THEREFOR 
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Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
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assembled: 
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SECTION 1.  Title. – This Act shall be known as the “Pondo sa Pagbabago at Pag- 
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asenso Act” or the “P3 Act”. 
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SEC. 2. Declaration of Policy. – It is the declared policy of the State to foster national 
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development, promote inclusive growth, and reduce poverty by promoting the growth of micro 
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and small enterprises (MSEs) that facilitate local job creation, production and trade in the 
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country. Towards this end, the State shall develop policies, plans and programs, and initiate 
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means to encourage entrepreneurial activities, and to ease the constraints and challenges to 
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MSEs, particularly on access to financing. 
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SEC. 3. Objectives. – The objectives of this Act are: 
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a.
To provide an affordable, accessible, and simple financing program for the
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country’s MSEs, especially those in the poorest populations and underserved areas; 
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b.
To provide a better alternative to informal lenders or the so-called “5-6”
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money lending system availed of by micro enterprises; 
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c.
To bring down the interest rate at which financial services is made available
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to MSEs; 
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d.   To boost the development of entrepreneurship and the micro, small and 
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medium enterprise (MSME) sector, particularly the MSEs; and 
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e.    To support the recovery of MSEs from the effects of the covid-19 pandemic 
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lockdown and ensure their viability. 
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SEC. 4. Creation of the Pondo sa Pagbabago at Pag-asenso (P3) Fund. – There 
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is hereby created the Pondo sa Pagbabago at Pag-asenso Fund, hereinafter referred to as the  
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“P3 Fund”, which shall be lent out to qualified MSEs under such terms and conditions that will 
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meet the purposes of this Act. 
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The beneficiaries of the P3 Fund shall be the micro and small enterprises, as defined 
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under Republic Act No. 6977, as amended, otherwise known as the “Magna Carta for Micro, 
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Small and Medium Enterprises (MSMEs)”. 
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The fund shall be accessible through the Small Business Corporation (SB Corp.) and 
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through accredited partner financial institutions (PFIs) such as rural banks, thrift banks, 
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development banks, cooperative banks, cooperatives, non-stock savings and loan 
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associations, microfinance non-government organizations, or lending companies. 
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For efficient implementation and operation, cooperatives except cooperative banks 
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and insurance cooperatives shall be under the sole supervision and examination of the 
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Cooperative Development Authority (CDA); all other financial entities, corporations and 
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financial intermediaries, such as non-government organizations, financing companies, 
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nonstock savings and loan associations, microfinance non-government organizations, and 
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lending investors shall be under the Securities and Exchange Commission (SEC); banks shall 
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be under the Bangko Sentral ng Pilipinas (BSP); and insurance companies shall be under the 
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Insurance Commission (IC). 
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Cooperative banks shall be under the supervision and examination of the CDA and 
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BSP; while insurance cooperatives shall be under the supervision and examination of the CDA 
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and Insurance Commission (IC). 
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SEC. 5. Lead Implementing Agency. – The SB Corp., the financing arm of the 
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Department of Trade and Industry (DTI), shall be the lead implementing agency for the P3 
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Fund. The SB Corp. shall handle the fund delivery to MSEs through the following modes: 
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a.  Direct lending for forty percent (40%) of the P3 Fund; and 
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b.  Lending through accredited PFIs for sixty percent (60%) of the P3 Fund. 
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The SB Corp. shall prioritize lending to underserved and unserved areas and MSE 
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segments of the country, subject to the review and approval of the Micro, Small and Medium 
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Enterprise Development (MSMED) Council. 
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With the goal to achieve greater outreach to all provinces and barangays of the country, 
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financial technology-enabled systems and processes can be utilized in the implementation of 
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the P3 program. 
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An amount sourced from the accumulated P3 Fund of not more than five percent (5%) 
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of the total loans disbursed for the period can be used by the SB Corp. to support its annual 
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administrative and operating expenses for the P3 Fund, inclusive of the cost of regular plantilla 
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personnel, up to the extent of their involvement in developing and managing the P3 loan 
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portfolios. 
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SEC. 6. Features of the P3 Fund.  –  The P3 Fund shall have the following 
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features: 
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a.    The loanable amount for individual loans shall be set and regularly 
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reviewed by the MSMED Council; 
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b.     The effective interest rate to be imposed on the loan availed of by the P3 
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Fund beneficiaries shall not exceed one percent (1%) per month for direct lending, and shall 
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not exceed two and a half percent (2.5%) per month for lending through accredited PFIs; 
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c.     The interest earnings shall accrue to the P3 Fund; 
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d.    There shall be no collateral requirement from the P3 Fund loan 
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beneficiaries; and 
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e.     The lenders shall have a collection mechanism, whereby payments are made 
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on a daily, weekly, or monthly basis, or depending on the livelihood project income cycle. It 
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shall be the duty of the lender to collect the loan principal and the interest payments from the 
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borrower. 
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SEC. 7. Policy Oversight Function. – The MSMED Council shall monitor the 
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utilization and disbursements of the P3 Fund. It shall submit to the President of the Philippines 
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and to Congress, through the Congressional Oversight Committee on Micro, Small and Medium 
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Enterprise Development (COC-MSMED), a quarterly report on the status of the P3 Fund. 
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SEC. 8. Appropriations. – The initial amount for the implementation of this Act shall 
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be charged against the current year’s appropriations of the SB Corp. Thereafter, such amount 
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necessary shall be included in the annual General Appropriations Act. 
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SEC. 9. Implementing Rules and Regulations. – Within sixty (60) days from the 
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approval of this Act, the DTI, in consultation with the stakeholders concerned, shall formulate 
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and promulgate the necessary rules and regulations to implement the provisions of this Act. 
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SEC. 10. Separability Clause. – If any part or section of this Act is declared 
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unconstitutional, such declaration shall not affect in any manner other parts or sections hereof. 
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SEC. 11. Repealing Clause. – Section 22 of Republic Act No. 8367, otherwise known 
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as the “Revised Non-Stock Savings and Loan Association Act of 1997” is hereby repealed. All 
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laws, decrees, proclamations, issuances, or ordinances that are contrary to or inconsistent with 
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the provisions of this Act are hereby amended, repealed or modified accordingly. 
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SEC. 12. Effectivity. – This Act shall take effect fifteen (15) days after its 2 publication 
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in the Official Gazette or in a newspaper of general circulation. 
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Approved, 
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