Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City

Eighteenth Congress
‘Third Regular Session

IS DATENovember 25, 202159
* TIME 3:23 pm *
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Introduced by: REP. Allan Benedict S. Reyes

EXPLANATORY NOTE

HOUSE BILL NO. 10550

When it comes to promoting and supporting micro and small enterprises,
Quezon City has a number of programs and best practices that other Local Government
Units (LGUs) can adopt. For instance, the City has the Small Business and Cooperatives
Development and Promotions Office (“QC-SBCDPO”) which aims “[t]o promote,
support, strengthen and encourage the establishment, continuing viability, sustainable
growth and development of innovative micro and small enterprises, entrepreneurs, and
cooperatives.” The said Office was created in 2014 under City Ordinance No. SP-2364,
$-2014 which was enacted on 24 November 2014. Its mandate includes sputring
“inclusive growth and development by stimulating entrepreneurship, growing micro and
small enterprises and strengthening cooperatives through appropriate organizational and
business development programs and service. The QC-SBCDPO also oversees and
facilitates the planning, delivery, coordination, consolidation and convergence of all
stakeholder efforts to develop and promote micro and small enterprises and
entrepreneurship in the City. The said Office is also in charge of evaluating Micro
Enterprises (ME) covered by Republic Act (R.A.) No. 9178" otherwise known as the
Barangay Micro Business Enterprises (BMBE) Act of 2002. Pursuant to the
implementing cules and regulations of the said law, Quezon City also has a Business
One-Stop Shop (BOSS) under its Business Permits and Licensing Department that
handles the efficient registration and processing of permits or licenses of BMBEs.

Quezon City also enacted Ordinance No. SP-2360, $-2014 or an Ordinance
Adopting a Magna Carta for Micro and Small Business Enterprises in Quezon City.
Seeing the vital role of the MSE sector in the economy and their potential to generate
sustainable employment, the City Government upheld the declared policy of Republic
Act 6977, as amended, or the Magna Carta for Micro, Small and Medium Enterprises
(MSMEs). To maximize the potential of MSEs, the City Government found it imperative
“to develop a measure that will provide for a holistic and comprehensive program and
requisite support systems, mechanisms and infrastructures for the sustainable
development and promotion” of MSEs. For this purpose, one of the development
objectives of the Ordinance is to create “an enabling business envionment that is
conducive to the establishment, innovation, development and sustainable growth of
MSEs. Furthermore, the Ordinance aims to enable MSEs to “conveniently access
appropriate and affordable financial products, services and programs (ve., savings, credit,
insurance, remittance, transfers) from multiple sources and for various purposes. To

‘office (ast accessed 20 November 2021).
2 An Act to Promote the Establishment of Barangay Micro Business Enterprises (BMBES), Providing
Incentives and Benefits therefor, and for Other Purposes, 13 November 2002.


carry out the declared policy and principles in the said Ordinance, the Micro and Small
Enterprise Development (MSED) Council was also created by the City Government.
‘The QC-SBCDPO was also identified as the primary office in charge to implement the
policies and programs of the Ordinance. The QC-SBDPO was also mandated to
facilitate and assist all qualified MSEs to avail of the incentives, benefits and privileges
granted under the Ordinance.

Similarly, during the COVID-19 pandemic, Quezon City launched Kalingang QC
Sa Negosyo which aims to provide assistance to micro and small business enterprises by
helping them meet ongoing business costs through wage subsidies that can help retain
their employees and business operations. Eligible micro-business enterprise can apply for
wage subsidy equivalent to fifty percent (30%) of an employee's minimum wage for a
three-month period?

While, admittedly, not all LGUs are similarly situated, it seems that the adoption
as far as practicable by other LGUs of some of the best practices of Quezon City may
help more MSEs nationwide. Consequently, this important sector in society can thus
contribute further to the economic development of the country in general.

In view of the foregoing, passage of this bill is earnestly sought.

| p—

HON. ALLAN BENEDICT S. REYES (/\
Representative, 30 District, Quezon City

> huipss//sikap.com ph/loans/halingang-qc-panusa-negossa/ (ast accessed 20 November 2021)
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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Eighteenth Congress
‘Third Regular Session

HOUSE BILL NO. 10550

Introduced by: REP. Allan Benedict S. Reyes

AN ACT CREATING THE SMALL BUSINESS DEVELOPMENT AND
PROMOTIONS OFFICE (SBDPO) IN ALL CHARTERED CITIES IN THE
PHILIPPINES, PRESCRIBING ITS AUTHORITY AND DUTIES, AND FOR
OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION L. Short Title. - This Act shall be known as the “Small Business
Development and Promotions Office Act of 2021.”

SECTION 2. Declaration of Policy. ~ It is hereby declared a policy of the
State to promote, support, strengthen and encourage the growth and development of
‘micro and small enterprises (SMEs) in all productive sectors of the economy. To ensure
that SMEs have better and more convenient access to requisite support systems,
mechanisms and infrastructures, an Office that will develop and promote them is hereby
created.

SECTION 3. Coverage. ‘This Act shall apply to all chartered cities in the
Philippines, except Quezon City and other cities which may already have the same or
similar Office.

SECTION 4. Creation of the Small Business Development and
Promotions Office. \t is hereby created a Small Business Development and Promotions
Office (SBDPO) under the executive supervision of the Department of Interior and
Local Government (DILG) which shall promote, support, strengthen and encourage the
establishment, continuing viability, sustainable growth and development of MSEs in all
chartered cities nationwide.

SECTION 5. Outright Subsidy. Vo ensure fast and efficient facilitation, the
SBDPO shall have the authority to give outright subsidy to all legitimate SMEs operating
in their respective chartered cities. For this purpose, the SBDPO shall only require
minimum eligibility and documentary requirements to prove the legitimacy of the SME.
‘The amount of subsidy shall be decided in coordination with the DILG and concerned
LGU.

SECTION 6. Credit Facility. Subject to a certain threshold that it may impose,
the SBDPO shall also have the authority to extend loans to SMEs with no interest and
payable in at least twelve (12) to eighteen (18) months. It shall only require minimum

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eligibility and documentary requirements to ensure access to most number of MSEs
within its jurisdiction.

SECTION 7. Implementing Rules and Regulations and Standard Forms. -
Within sixty (60) days from the promulgation of this Act, the necessary rules and
regulations for the proper implementation of its provisions shall be formulated by the
appropriate government office or agency in coordination with all the stakeholders and
covered LGUs.

SECTION 8. Repealing Clause. — All laws, executive orders, administrative
orders, rules, regulations, decrees, and other issuances or parts thereof, which are
inconsistent with the provisions of this Act are hereby revoked, repealed, or modified
accordingly.

SECTION 9. Separability Clause. - If any provision of this Act is held
unconstitutional or invalid, the other provisions not affected thereby shall continue in
operation and remain in full force and effect.

SECTION 10. Effectivity Clause. - This Act shall take effect fifteen (15) days
after its publication in a newspaper of general circulation or the Official Gazette.