NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
S. No. 1499
§)rnnrf
of tl)C gn'cvetaii)
72 NOV 14 A8S6
RECEIVED B';.
Introduced by Senator MANUEL "LITO" M. LAPID
AN ACT
PROVIDING SUPPORT SERVICES FOR MICRO, SMALL, AND MEDIUM 
ENTERPRISES (MSMEs) IN ONLINE SPACES, PROVIDING MECHANISMS 
FOR THEIR INTEGRATION INTO THE FORMAL ECONOMY, AND FOR OTHER
PURPOSES
EXPLANATORY NOTE
The Philippines recognizes the significance of e-commerce in our economic 
recovery, growth, and development, especially when the whole world struggled under 
the COVID-19 pandemic. The Department of Trade and Industry (DTI) reported that 
e-commerce contributed about 3.4% of our Gross Domestic Product in 2020. In fact, 
the Philippines ranked second, after Indonesia, in terms of e-commerce adoption that 
same year.
Among those who helped to mitigate job losses during the same period were 
the so-called "self-employed without any paid employee". About 28.7% of workers in 
April 2020 were from this class of worker, which primarily consists of those with new 
online businesses in the social media and other digital platforms. However, the DTI 
estimated in 2020 that there were about six million micro enterprises, or those 
considered to be in the informal sector, who are not registered. Only 1.5 million micro 
enterprises were registered. Attention should be given to the potential of these small 
online enterprises when formalized and registered and when given adequate support 
services.


This bill seeks to incentivize the registration of the micro, small, and medium 
online enterprises (online MSMEs) by providing support services that will aid in the 
efficient and effective operation of their businesses. This also aims to provide sufficient 
and adequate capital and credit access for those seeking to operate in online spaces, 
to create a small online business one-stop portal for all the support services, to adapt 
to and make them attuned with the recent developments and advancements in 
technology, among others.
In view of the foregoing, early passage of this bill is earnestly sought.
MA
Senator


NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
S. No. 1499
Senate
of tljf £ ftnrp
*22 NOV 14 A8S6
RECEIVED BV;
Introduced by Senator Manuel "Lito" M. Lapid
AN ACT
PROVIDING SUPPORT SERVICES FOR MICRO, SMALL, AND MEDIUM 
ENTERPRISES (MSMEs) IN ONLINE SPACES, PROVIDING MECHANISMS 
FOR THEIR INTEGRATION INTO THE FORMAL ECONOMY, AND FOR OTHER
PURPOSES
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled:
1 
SECTION 1. Short Title. - This Act shall be known as the "Support Services for
2 
Online MSMEs Act of 2022."
3 
SECTION 2. Objectives. - This Act acknowledges the effort of Filipino workers
4 
to find decent employment through online entrepreneurial activities, and seeks to
5 
provide them with the support services they need to become formal, duly registered,
6 
and taxpaying businesses that create dependable employment for their operators and
7 
others, and generate value in their communities.
8 
Towards these ends, this Act aims to:
9 
a. Provide adequate capital and credit access for individuals seeking to operate
10 
micro, small, and medium online enterprises (online MSMEs);
11 
b. Facilitate the registration and operation of such enterprises, and streamline
12 
government support services relevant to their needs;


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c. Assist online MSMEs to adapt to new trends and developments in the digital 
space;
d. Assist existing businesses in entering to the online commercial space;
e. Provide adequate training on the various aspects of online entrepreneurship; 
and
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f. Encourage the creation of online enterprises among rural communities and
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provide farmers and fisherfolk with opportunities for higher income.
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SECTION 3. Micro, small, and medium online enterprises. - For purposes of this
9 
Act, the online MSMEs are as follows:
a. "Micro online enterprises" shall refer to duly-registered businesses whose 
assets do not exceed P3,000,000;
b. "Small online enterprises" shall refer to those whose assets exceed 
P3,000,00 but not more than P15,000,000; and
c. "Medium online enterprises" shall refer to those whose assets exceed 
P15,000,00 but not more than P100,000,000;
16 
Provided, that the consumer access of the enterprise's products or services are
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primarily offered through online channels.
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SECTION 4. Access to capital. - The Landbank of the Philippines (LBP) and the
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Development Bank of the Philippines (DBP) shall establish loan products for online
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MSMEs as defined by this Act, with interest rates which shall not exceed the lowest
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interest rate for an existing loan product with similar loan tenures offered by the said
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banks.
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LBP and DBP shall also establish, within their official websites, online facilities
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where loan applications may be initiated and evaluated for further action.
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LBP shall prioritize offering the loans pursuant to this Section to enterprises
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from rural areas and/or enterprises related to agriculture, fisheries, and forestry.


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The Department of Finance (DOF), in cor.cjltation with LBP and DBP, shall issue
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the rules and regulations necessary for the implementation of this Section within thirty
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(30) days upon the effectivity of this Act.
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SECTION 5. Consolidation of support services. - The Department of Trade and
5 
Industry (DTI) shall establish an online portal consolidating all available government
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support services for online MSMEs. Such services may include, but shall not be limited
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to, loans from government financial institutions, regulatory relief and extensions,
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technical training, product development services, marketing assistance, and logistics
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support.
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The online portal shall be made publicly accessible within one (1) year upon
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the effectivity of this Act.
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The DTI shall also establish an "Online Negosyo Center" within the portal, which
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shall be an information and assistance center dedicated to serving the needs of online
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MSMEs, and to assisting informal businesses and other interested individuals and
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businesses transition into online MSMEs.
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The DTT shall assist government agencies offering services to online MSMEs in
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making these services accessible online. Government agencies shall, as far as
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practicable, digitalize the processes involved in the provision of these support services.
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The Department of Information and Communication Technology (DICT) shall provide
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the necessary assistance in digitalizing online MSME support services.
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The Anti-Red Tape Authority (ARTA) shall ensure that such support services
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abide by standards set under Republic Act No. 11032, or the Ease of Doing Business
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Law.
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SECTION 6. Minimal fee for credit rating and appraisal. - The Credit Information
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Corporation (CIC) shall provide, with minimal fees or charges, online MSMEs with their
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credit report and credit score. As far as practicable, the CIC shall make the application
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and processing of credit report and credit requests pursuant to this Section accessible
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online.


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The Governance Commission for GOCCs (GCG) shall issue the rules and
2 
regulations necessary for the implementation of this Section within thirty (30) days
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upon the effectivity of this Act.
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SECTION 7. Facilitated regularization. - To encourage small online businesses
5 
to register with the relevant tax and regulatory authorities, the ARTA shall compile an
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inventory and assessment of processes required for online MSMEs to be fully and duly
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registered businesses in the Philippines.
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The ARTA shall conduct an annual assessment and audit of the said processes,
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which shall be reflected in a report submitted to the President, the heads of relevant
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agencies, and the Congress. The said report shall assess the compliance of relevant
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agencies with Republic Act No. 9485, Republic Act No. 11032, and other laws and
12 
regulations that aim to streamline frontline and client services of government
13 
agencies. The report shall be submitted on or before the thirtieth day of June of every
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year.
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SECTION 8. Entrepreneurship training. - The Technical Education and Skills
16 
Development Authority (TESDA) shall offer practical training programs for online
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MSMEs, or for individuals seeking to establish business in online spaces. Training
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programs shall include, but shall not be limited to, supply chain management,
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marketing, packaging, maintenance of online selling spaces, consumer relations, laws
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and regulations on online selling, and others.
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TESDA programs whose objective is to encourage entrepreneurship shall also
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include modules on migrating enterprises online.
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As far as practicable, these training programs shall be made available online,
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and shall be displayed in the online portal created under Section 5 of this Act.
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Based on the demonstrated financial need of trainees, and on a competitive
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basis, the TESDA shall also offer online enterprise grants for successful completers of
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its online enterprise training programs. The funds necessary for the implementation
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of this paragraph shall be sourced annually from the General Appropriations Act.


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Priority for such grants shall be given to recently displaced workers or the
2 
unemployed seeking gainful employment. TESDA shall issue the rules and regulations
3 
necessary for the implementation of this Section within thirty (30) days upon the
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effectivity of this Act.
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SECTION 9. Online migration support services. - The Department of
6 
Information and Communication Technology (DICT), in partnership with the DTI, shall
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provide support services to assist businesses in migrating to the online space, and to
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support online MSMEs in maintaining their online businesses. The DICT shall designate
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an office within its agency as the focal office for the delivery of these support services.
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Such services shall include assistance in obtaining affordable and reliable
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internet connectivity, securing online payment systems, and such other information
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and communication technology (ICT) related support services as the DTI may request
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the DICT to help provide.
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The support services offered pursuant to this Section shall be made accessible
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in the online portai created under Section 5 of this Act.
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The funds necessary for the implementation of this paragraph shall be sourced
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annually from the General Appropriations Act, under a DICT program specifically
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intended for the purposes of this Section.
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SECTION 10. Rural online micro, small, and medium enterprises. - The
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Department of Agriculture (DA) shall provide support services to assist farmers and
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fisherfolk find direct market access in the online space and, whenever practicable, to
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duly register as enterprises. The DA shall also assist farmers and fisherfolk find
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partners or markets among the online MSMEs benefiting from the support services
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provided under this Act. The DA shall designate an office within its agency as the focal
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office for the delivery of these support services. The support services offered pursuant
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to this paragraph shall be made accessible in the online portal created under Section
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5 of this Act.
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The funds necessary for the implementation of this Section shall be sourced
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annually from the General Appropriations Act.
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The DA shall issue the rules and regulations necessary for the implementation
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of this Section within ninety (90) days upon the effectivity of this Act.
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SECTION 11. Oversight Committee. - The Chairs of House Committee on Micro,
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Small and Medium Enterprise Development and the Senate Committee on Trade,
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Commerce and Entrepreneurship, with five (5) members from each committee, shall
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jointly convene within six (6) months upon the effectivity of this Act to request updates
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on the drafting and issuance of rules and regulations mandated under this Act.
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Thereafter, the Oversight Committee shall convene at least once annually.
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SECTION 12. Separability Clause. -If, for any reason, any section, subsection,
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clause or term of this Act is held invalid or unconstitutional, such parts not affected by
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such declaration shall remain in full force and effect.
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SECTION 13. Repealing Clause. - All existing laws, orders, decrees, rules and
13 
regulations, or parts thereof, inconsistent with the provisions of this Act are hereby
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amended, modified or repealed accordingly.
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SECTION 14. Effectivity. - This Act shall take effect fifteen (15) days after its
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publication in the Official Gazette or in at least two (2) newspapers of general
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circulation.
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Approved,