TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
t . t
«Ttof
25 JUL 16 P4 -13
SENATE
Senate Bill No. (17.9
RLCEIV.
INTRODUCED BY SENATOR CHRISTOPHER LAWRENCE "BONG" T. GO
AN ACT
PROMOTING ENTREPRENEURSHIP BY ESTABLISHING A SUSTAINABLE 
FINANCING PROGRAM FOR MICRO AND SMALL ENTERPRISES THROUGH 
THE PONDO SA PAGBABAGO AT PAG-ASENSO PROGRAM, AND 
APPROPRIATING FUNDS THEREFOR
EXPLANATORY NOTE
It is the duty of the State to provide and ensure inclusive economic growth by 
sustaining equal employment opportunities among those who are unemployed or 
underemployed, establish a rising income generation and provide for a higher 
standard of living for every Filipino. Mirco and small enterprises play an irreplaceable 
role in our country's journey towards normalcy and recovery.
In its latest record, the Philippine Statistics Authority reported that there are 
1,080,810 business enterprises that operate in the country, 99.58% of which are 
MSMEs and the remaining 0.4% are large business enterprises. This only proves the 
importance and urgency of creating a sustainable financing program for Micro and
Small businesses to make sure that their financial needs are met during these 
uncertain times.1
2023mQ^’,sft^rilv.-TiTrcnoAttnPS:o)TV:manilatimeSnet/2023/06/10/business/,oP-business/msme-highlights-for-the-half-of- 
. xt-BASED /o20on /o20the%20latest%20record,enterprises%20operate%20in%20our%20country.


This bill seeks to foster national development, promote inclusive growth, and 
reduce poverty by promoting the growth of micro and small enterprises (MSEs) that 
facilitate local job creation, production and trade in the country. Towards this end, the 
State shall develop policies, plans and programs, and initiate means to encourage 
entrepreneurial activities, and to ease the constraints and challenges to MSEs,
particularly on access to financing through a fund which can be easily accesses by 
beneficiaries.
In view of the foregoing, the passage of this bill is earnestly sought.
SENATOR CHRISTOPHER U^^RENCE "BONG" T. GO


TWENTIETH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
cif I
25 JUL 16 P4 -13
8
9
10
11
12
13
14
15
16
SENATE
Senate Bill No. 679
RiiCEiVLO ov.
INTRODUCED BY SENATOR CHRISTOPHER LAWRENCE "BONG" T. GO
AN ACT
rrRp?*r!!.?.TING entrepreneurship by establishing a sustainable
™pANDiM^/^R0GRAM F0R MICR0 AND SMALL ENTERPRISES THROUGH
I2L«n0ND0 SA PAGBABAG0 AT PAG-ASENSO PROGRAM, AND 
APPROPRIATING FUNDS THEREFOR
^ongmss<assembledf Senate and H0USe of RePresentatives of the Philippines in
SECTION 1. Short Title. - This Act shall be known as the "Strengthening Access 
to Credit for Mirco and Small Businesses Act of2025."
SEC. 2. Declaration of Policy. - It is the declared policy of the State to foster 
national development, promote inclusive growth, and reduce poverty by promoting 
the growth of micro and small enterprises (MSEs) that facilitate local job creation, 
production and trade in the country. Towards this end, the State shall develop policies, 
plans and programs, and initiate means to encourage entrepreneurial activities, and 
to ease the constraints and challenges to MSEs, particularly on access to financing.
SEC. 3. Objectives. - The objectives of this Act are as follows:
(a) To provide an affordable, accessible, and simple financing program for the
country's MSEs, especially those in the poorest populations and underserved 
areas;
(b) To provide a better alternative to informal lenders or the so-called "5-6" money 
lending system availed of by micro enterprises;


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
(c) To bring down the interest rate at which financial services are made available 
to MSEs;
(d) To boost the development of entrepreneurship and the micro, small and 
medium enterprise (MSME) sector, particularly the MSEs; and
(e) To support the recovery of MSEs from the effects of the covid-19 pandemic 
lockdown and ensure their viability.
SEC. 4. Creation of the Pondo sa Pagbabago at Pag-asenso Fund. - There is 
hereby created the Pondo sa Pagbabago at Pag-asenso Fund, hereinafter referred to 
as "the Fund", which shall be lent out to qualified MSEs under such terms and 
conditions that will meet the purposes of this Act.
The beneficiaries of the Fund shall be the micro and small enterprises, as 
defined under Republic Act No. 6977, as amended, otherwise known as the "Magna 
Carta for Micro, Small and Medium Enterprises (MSMEs)". The Fund shall be accessible 
through the Small Business Corporation (SB Corp) and through accredited partner 
financial institutions (PFIs) such as rural banks, thrift banks, development banks, 
cooperative banks, cooperatives, non-stock savings and loan associations, 
microfinance non-government organizations, or lending companies.
SEC. 5. Lead Implementing Agency. - The SB Corp, the financing arm of the 
Department of Trade and Industry (DTI), shall be the lead implementing agency for
the P3 Fund. The SB Corp shall handle the fund delivery to MSEs through the following 
modes:
(a) Direct lending for forty percent (40%) of the Fund; and
(b) Lending through accredited PFIs for sixty percent (60%) of the Fund. The SB 
Corp shall prioritize lending to underserved and unserved areas and MSE 
segments of the country, subject to the review and approval of the Micro, Small 
and Medium Enterprise Development (MSMED) Council. With the goal to 
achieve greater outreach to all provinces and barangays of the country,
financial technology-enabled systems and processes can be utilized in the 
implementation of the program.


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
An amount sourced from the accumulated Fund of not more than two percent 
(2%) of the total loans disbursed for the period can be used by the SB Corp to support 
its annual administrative and operating expenses for the Fund, inclusive of the cost of 
regular plantilla personnel, up to the extent of their involvement in deveioping and 
managing the fund loan portfolios.
SEC. 6. Features of the Fund. — The Fund shall have the following features:
(a) The loanable amount for individual loans shall be set and regularly reviewed by 
the MSMED Council;
(b) The effective interest rate to be imposed on the loan availed of by the Fund 
beneficiaries shall not exceed one percent (1%) per month for direct lending, 
and shall not exceed two and a half percent (2.5%) per month for lending 
through accredited PFIs;
(c) The interest earnings shall accrue to the Fund;
(d) There shall be no collateral reguirement from the Fund loan beneficiaries;
(e) The lender shall only require basic qualifications and requirements to its 
borrowers, such as the following:
1. At least eighteen (18) years of age;
2. A member in good standing of the duly-registered cooperative or 
association, or a resident of the local government unit (LGU), from which 
he/she intends to avail of the loan;
3. Willing to state under oath the facts establishing the foregoing; and
4. Has attended a DTI-accredited livelihood seminar, as evidenced by a 
certificate of participation, and possesses credit-worthiness, as likewise 
proven by a certificate issued by the DTI for that purpose.
(f) The lenders shall have a collection mechanism, whereby payments are made 
on a daily, weekly, or monthly basis, or depending on the livelihood project 
income cycle. It shall be the duty of the lender to collect the loan principal and 
the interest payments from the borrower.
SEC. 7. Policy Oversight Function. - The MSMED Council shall monitor the 
utilization and disbursements of the Fund. It shall submit to the President of the


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
Philippines and to Congress, through the Congressional Oversight Committee on 
Micro, Small and Medium Enterprise Development (COC-MSMED), a quarterly report 
on the status of the Fund.
SEC. 8. Appropriations. - The initial amount for the implementation of this Act 
shall be charged against the current year's appropriations of the SB Corp. Thereafter, 
such amount necessary shall be included in the annual General Appropriations Act.
SEC. 9. Implementing Rules and Regulations. — Within sixty (60) days from the 
approval of this Act, the DTI, in consultation with the stakeholders concerned, shall 
formulate and promulgate the necessary rules and regulations to implement the 
provisions of this Act.
SEC. 10. Separability Clause. - If any part or section of this Act is declared 
unconstitutional, such declaration shall not affect in any manner other parts or 
sections hereof.
SEC. 11. Repealing Clause. - Section 22 of Republic Act No. 8367, otherwise 
known as the "Revised Non-Stock Savings and Loan Association Act of 1997" is hereby 
repealed. All laws, decrees, proclamations, issuances, or ordinances that are contrary 
to or inconsistent with the provisions of this Act are hereby amended, repealed or 
modified accordingly.
SEC. 12. Effectivity. - This Act shall take effect fifteen (15) days after its 2 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,