Republic of the Philippines
House of Representatives
Quezon City, Metro Manila
Nineteenth Congress
Second Regular Session
HOUSEBILLNo.9917
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Introduced by Representative Lianda 8. Bolilia
EXPLANATORY NOTE
In  1991,  the  Philipines  enacted  Republic  Act  No.  6977  known  as  the
"Magma Carta for Small  Enterprises"  in recognition  of the potential of Small
and  Medium  Scale  Enterprises  (SREs)  as  loci  of  employment  generation,
economic growth, and industrial development for the philippines.         The
creation of the Micro, Small, and Medium Enteaperise Development (MSRED)
Council,   and  the   Small  Business  Finance  and  Guarantee  Corporation  are
products  of this  law,  and  both  were  created  with  the  goal  to  contribute  and
coordinate  efforts  in  boosting  the  growth  and  development  of MSME's  as
consistent  with  state  policy.  It  is  also  through  this  law  that  MSMEs  were
granted improved access to credit by requiring lending institutions to set aside
part  of  their  loan  portfolios  for  these  enterprises.  Republic  Act  No.  9501
amended  the  Magma  Carta  and  further  strengthened  the  development  and
assistance programs to Micro, Small, and Medium Scale Enterprises (MSMEs).
This   amendment   also   provided   for  the   definition   of  MSMEs,   and   other
regulations on the provision of grants and assistances.
Despite the successes of the law, its amendments, and the aforementioned
instrumentalities, there is a need to update its provisions to address new issues,
one of which is the outdated definitions of enteapises or businesses that belong
to  the  MSME  category.  The  asset  value  thresholds  need  to  be  adjusted  in
consideration of infliation, and other economic factors but no amendments have
been  made  since  the  enactment  of R.A  9501  thus  limiting  the  number  of
MSMEs that can benefit from the said program.


As  such,  I  file  this  bill  and propose the redefinition  of the  asset value
thresholds  in  order to  extend  the  benefits  and  priveleges  of the  law to  more
MSREs. Further, this is bill will help further the sectoral goals and outcomes
which the Philippine Development Plan 2023-2028 hopes to
In  consideration  of the  foregoing,  immediate  p
earnestly sought.
ieve.
this  bill   is


Republic of the Philippines
House of Representatives
Quezon City, Metro Manila
Nineteenth Congress
Second Regular Session
HOUSE BILL No. 9917
Introduced by Representative Lianda 8. Bolilia
1                                                                   AN ACT
2             EXPANDING THH COVERAGE OF MICRO ENTHRPRISES AS
3         BHNEFICIARIES OF THH MAGNA CARTA FOR MICRO, SMALL,
4          AND MEDIUM ENTERPRISES, AMENDING FOR THH PURPOSH
5                                 REPUBLIC ACT NO. 6977, AS AMENDHD
6
7      Be  it  enacted  by  the  Senate  and  the  House  Of  the  Representatives  Of  the
8      Philippines in congress assembled:
9
10                 SECTION   1.     Section  3  of the  Magna  Carta  for  Micro,  Small,  and
11      Medium Enteapises  or Republic Act No.  6977,  as  amended,  is hereby  further
12      amended to read as follows:
13
14
15
16
17
18
"See. 3. Micro, Small, and Medium Enterprises (MSMEs) as
Be73e¢cz.czrz.es. - MSMEs  shall be  defined as any business activity
or  enteaprise  engaged  in  industry,  agribusiness  and/or  services,
whether    single    proprietorship,     cooperative,    partnership    or
corporation  whose  total  assets,  inclusive  of those  arising  from
loans  but  exclusive  of the  land  on which the  particular business


entity's office, plant, and equipment are situated, must have value
falling under the following categories:
Micro: not more than P 3,000,000] P 75cO,000
Small:   P   3,000,001         P   15,000,000]   MORE   TIIAN
P7'500,000 to P15'000'000
Medium:   P15,000,001        P100,000,000]   MORE  THAN
PIS,000'000 T0 P|00'000'000.
" x x x.
10
« x x x."
SEC. 2.  Impleinenting Rules and Regulations. -W.Tlhiln tlilrty (30) days
11     upon the approval of this Act, the Department of Trade and Industry shall, in
12      coordination  with  the  Micro,   Small,  and  Medium  Enterprise  Development
13      Council,  promulgate  the  necessary   implementing  rules   and  regulations  to
14      effectively implement this Act.
15                  SEC.  3.  Rcpe¢/z.#g  CJ¢wse -All  laws,  acts,  decrees,  executive  orders,
16      issuances, and rules and regulations or parts thereof which are contrary to and
17      inconsistent   with   this   Act   are   hereby   repealed,   amended   or   modified
18      accordingly.
19                  SEC. 4. Ej7rec/i.tJrty -This Act shall take effect fifteen (15) days after its
20      complete publication in the official Gazetteor in at least two (2) newspapers of
21      general circulation.
22
Approved,