Republic of the Philippines
House of Representatives
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL no, 4863

INTRODUCED BY CONGRESSMAN ALFRED VARGAS

EXPLANATORY NOTE

Article XII Section 14 of the 1987 Philippine Constitution provides that a sustained
development of a reservoir of Filipino entrepreneurs and managers shall be promoted by the
State.

‘The Philippines is an entrepreneurial country. Slowly, entrepreneurship is becoming
the backbone of the country’s economy. Small and medium-sized enterprises (SMEs) comprise
of an estimated 99% of the establishments in the country and provide 66% of total
employment in the private sector. However, a number of problems continue to hold back
Filipinos from realizing their entrepreneurial aptitude. Among these challenges include lack of
adequate knowledge on financial management, high cost of doing business, lack of access to
finance and market information, and low productivity and competitiveness due to the lack of
economic capacity.

Recognizing these challenges, this Representation championed the passage of Republic
Act 10679, otherwise known as the “Youth Entrepreneurship Act” in the 16% Congress. This
intends to address the low level of entrepreneurial and financial skills among young Filipinos
through the delivery of highly relevant programs to our students. Now, this Representation
seeks to establish a financial literacy and entrepreneurship education program for Filipino
workers to empower them to generate more income and ultimately lead a life of economic and
financial freedom.

This bill mandates the Department of Labor and Employment to provide assistance, in
the form of grants or loans, to deserving working entrepreneurs to enable them to launch their
own small or medium enterprises. The Department is also directed to offer grants and loans to
cligible entities that will provide financial literacy and entrepreneurship programs to workers.

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

FRED VARGAS


Republic of the Philippines
House of Representatives
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE iitino, 4863

INTRODUCED BY CONGRESSMAN ALFRED VARGAS

AN ACT
PROVIDING FINANCIAL LITERACY AND ENTREPRENEURSHIP PROGRAMS FOR WORKERS

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

SECTION 1. Short T:
Workers Act.”

~ This Act shall be known as the “Financial Literacy for

SEC. 2. Definition of Terms. - For purposes of this Act, the following terms are hereby
defined:

(A) Eligible entity refers to the employer;

(B) Working entrepreneurs refers to individuals who are employed and engaged in
the operations and/or management of a micro, small or medium enterprise;

(C) Department means the Department of Labor and Employment;

(D) Secretary means the Secretary of Labor and Employment

SEC. 3. Grants and Loans. - The Secretary shall award grants and loans, on a
competitive basis, to eligible entities to enable 's to provide financial literacy and
entrepreneurship programs to workers, The Secretary may make available to deserving
working entrepreneurs, assistance in the form of grants or loans, to provide for the initial
launch of their small or medium enterprises.

SEC. 4. Application. - An eligible entity and working entrepreneur that desires to
receive grant and loan under this section shall submit an application to the Secretary
accompanied by itemized budget and other data as the Secretary may oblige

SEC. 5 Appropriations. The amount necessary for the initial implementation of this Act
shall be sourced from the current budgets and development funds of the Department of Labor
and Employment. Thereafter, the funds necessary for the continuous implementation of this


Act in the ensuing years shall be included in the respective annual appropriations of
Department in the ¢

eneral Appropriations Act,

SEC. 6 Implementing Rules and Regulations. The Department of Labor and
Employment, in consultation with relevant stakeholders shall issue within sixty (60) days after
the effectivity of this Act, the rules and regulations for the effective implementation of this Act.

SEC. 7. Separability Clause. If any provision of this Act or any part thereof shall be
declared unconstitutional or invalid, the other provisions, as far as they are separable, shall
remain in force and effect.

SEC. 8. Repealing Clause. All laws, decrees, orders, rules and regulations or thereot
which are inconsistent with the provisions of this Act are hereby repealed, amended or
modified accordingly.

SEC. 22. Effectivity,
the Official G:

This Act shall take effect fifteen (15) days after its publication in
zette or in at least two (2) newspapers of general circulation

Approved.