FIFTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
SENATE 
s,B1068 
Introduced by Senator Manny Villar 
EXPLANATORY NOTE 
S[-N"HE 
OFFICE Of 1 c;J Sfc:,:'RE1,J\In' 
Section 22, Article 11 of the Constitution states "The States recognizes the indispensable 
role of the private sector, encourages, private enterprise and provide incentives to needed 
investment." Likewise, Section 14, Article XII provides that: "the sustained development of a 
reservoir of national talents consisting of Filipino scientists, entrepreneurs, professionals, 
managers, high level manpower and skilled workers and craftsman in all fields shall be ' 
promoted by the State," 
Every year, Philippine colleges and universities produce thousands of college graduates 
who crowd the labor force, but cannot land in any job, Thus, it results into a huge reserve of 
unemployed, According to the Commission on Higher Education (CHED), more than 447,000 
college students graduated in schools nationwide in April 2006, Research says that this adds to 
the 2,8 million unemployed, One way by which the government can solve the high 
unemployment rate among college graduates and undergraduate students is to teach them to 
face the world with an entrepreneurial mindset. Thus, they should be equipped with skills to be a 
success, and be a boss of their own, 'Unfortunately, their dreams and aspirations to be self-
sufficient at a young age are hampered by lack of material and financial resources available to 
them, 
In line with the above constitutional provisions, this proposed measure seeks to promote 
the establishment, ownership and operation of economic enterprises by individuals, particularly 
college students and graduates, This is done by mandating banks and financial institutions, 
through their credit and financing system, to allot at least five per cent (5%) of their loanable 
funds to new college graduates and' fulltime college students, including those enrolled in 
technical and vocational schools, With access to financing scheme, they can start and put up 
their own entrepreneurial ventures, thereby foster their entrepreneurial mindset and develop 
skills and values necessary to build the backbone of competitiveness in the Philippine economy, 
The CHED shall issue the necessary guidelines to ensure that its objective of motivating 
entrep'reneurship among them be realized, Therefore, not all new graduates and fulrtime 
students will qualify for the grant of such privilege, The Bangko Sentral ng Pilipinas (BSP), in 
consultation with and upon recommendation of CHED, shall determine the eligibility of 
applicants to such credit and financial assistance, Thereafter, the new graduates and students 
are required to undergo educational training by the SSP and CHED in coordination with the 
Department of Trade and Industry (DTI) to stimulate their awareness of entrepreneurship as 
options for employment and help them 
be more creative, innovative, independent, and self confident which are essential attributes for' 
their success, 
In view of the foregoing, early passage of this proposed measure is earnestly requested, 
AR 


S!'~J,yq:: 
FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
OFI'ICE. Of TH. :;ECRE rAil"! 
t- , . 
SENATE 
S.B. 1068 
Introduced by Senator Manny Villar 
AN ACT 
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PROMOTING ENTREPRENEURSHIP BY MANDATING BANKS TO PROVIDE 
FIVE PER CENT (5%) OF THEIR LOANABLE FUNDS TO NEW GRADUATES 
AND FULL TIME STUDI;NTS, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines In 
Congress assembled: 
SECTION 1. Short Title. - This Act shall be known as the "College Graduates 
and Students Entrepreneurship Act of 2010". 
SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State to 
promote the establishment, ownership and operation of economic enterprises by 
individuals by fostering entrepreneurial mindset among new college graduates and full-
time students. Towards this end, banking institutions shall allot, through their credit and 
financing system, at least five per cent of their loanable funds to new college graduates 
and fulltime students. 
mean: 
SEC. 3. Definition of Terms. - As used in this Act, the following terms shall 
a. New Graduates - those who just graduated from college, including those who 
have finished a technical and vocational course upon the effectivity of this 
Act; 
b. Fulltime College Students - those who are presently enrolled in baccalaureate 
degree or technical vocational course, with at least fifteen (15) unit load per 
semester for the past four (4) semesters from the effectivity of this Act; 
c. Entrepreneurship - an organizer of an economic venture especially one who 
organizes, owns, manages and assumes the risk or danger of uncertain 
outcome or unforeseen. condition, especially a business enterprise of 
speculative nature. 
SEC. 4. Coverage. - This Act shall cover all new graduates and other fulltime 
students in the country. 
SEC. 5. Grant of Credit and Financial Assistance. -
Banks, whether 
government or private, shall allot at least five per cent (5%) of their loanable funds to 
graduates and fulltime students. Provided, however, that such amount loaned shall be 
exclusively utilized as seed money or capital for their business ventures. 
SEC. 6. Eligibility for Credit and Financial Assistance. - The Commission on 
Higher Education (CHED), in coordination with Bangko Sentral ng Pilipinas (BSP) shall 
issue the guidelines for the availment of credit and financial assistance from the banking 
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institutions by would-be student-entrepreneurs. It shall likewise assess and determine 
the eligibility of applicants to such loans. 
SEC. 7. Education and Training for Would-Be Student-Entrepreneurs. - The 
BSP and CHED, in coordination with the Department of Trade and Industry (DTI), shall 
conduct a training for eligible graduates and students within the coverage of this Act in 
order to promote their entrepreneurial mindset, enhance business skills and encourage 
innovative business start-ups. 
SEC. 8. Availment and Payment of Credit and Financial Assistance. - The 
Bangko 
Sentral 
ng 
Pilipinas 
(BSP), 
in 
consultation with, 
and/or upon the 
recommendation of CHED, shall determine the eligibility of applicants to such credit and 
financial assistance. It shall likewise provide the general guidelines for the payment of 
such loans by college graduates and. stUdents. 
SEC. 9. Implementing Rules and Regulations. - The Commission on Higher 
Education (CHED, in coordination with the BSP and DTI, shall issue and promulgate the 
necessary implementing rules and regulations within (60) days upon the approval of this 
Act. 
SEC.10. Repealing Clause. - All laws, rules and regulations or parts thereof, 
inconsistent with the proviSions of this Act are hereby repealed or modified accordingly. 
SEC. 11. Separability Clause. - If any part, section or provision of this Act shall 
be held invalid or unconstitutional, no other part, section or provisions thereof shall be 
affected thereby. 
SEC. 12. Effectivity. - This Act shall take effect after publication in the Official 
Gazette and in at least two (2) newspapers of general circulation. 
Approved, 
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