TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE 
s. NO. 789
Senate
25 AUG-4 P1:11
Rl'CEIVJi') B'..
Introduced by Senator Loren Legarda
AN ACT
INSTITUTIONALIZING THE POVERTY REDUCTION THROUGH SOCIAL 
ENTREPRENEURSHIP (PRESENT) PROGRAM, PROMOTING SOCIAL 
ENTERPRISES WITH THE POOR AS PRIMARY STAKEHOLDERS, AND 
STRENGTHENING SUPPORT SYSTEMS FOR SOCIAL IMPACT ECONOMIES
EXPLANATORY NOTE
Social enterprises are a growing global force for inclusive and sustainable 
development. These mission-driven organizations combine entrepreneurial discipline with 
a social purpose—engaging the poor not as passive beneficiaries but as active 
stakeholders in wealth creation and community transformation. In the Philippine context, 
social enterprises have long operated at the grassroots, often filling gaps left by traditional 
business and state interventions, particularly in agriculture, artisanal trades, informal 
work, and disaster-affected communities.
According to a study by the British Council and Philippine Social Enterprise 
Network, there are an estimated 164,000 social enterprises across the country, many of 
which remain under-supported by current legal and institutional frameworks. While the 
government provides various forms of assistance to micro, small, and medium enterprises 
(MSMEs), these programs are not specifically designed to address the dual challenges 
faced by social enterprises: achieving commercial viability while fulfilling a measurable 
social mission.
This bill seeks to institutionalize the Poverty Reduction through Social 
Entrepreneurship (PRESENT) Program as a flagship national strategy to harness the 
potential of social enterprises for inclusive growth, poverty reduction, and resilience 
building. It recognizes social enterprises that reinvest a majority of their profits toward


improving the lives of marginalized groups—including farmers, fisherfolk, women, persons 
with disabilities, indigenous peoples, and informal workers.
Among the key features of this bill are:
• 
The creation of a National Social Enterprise Registry, and the accreditation 
of Certified SEs based on clear impact thresholds and annual reporting 
requirements;
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A dedicated Social Enterprise Development Fund (SEDF) to provide grants, 
financing, guarantees, and ecosystem-building support;
• 
Mandatory credit windows in government financial institutions and a 
guarantee facility managed by the Small Business Corporation (SB Corp.) 
to de-risk social enterprise lending;
• 
Preferential access to government procurement, particularly for SEs 
producing goods or delivering services aligned with public needs;
• 
The integration of social entrepreneurship education in curricula at all levels 
through DepEd, CHED, and TESDA;
• 
The recognition and prioritization of women-led SEs and those supporting 
the formalization of informal workers;
• 
Alignment with the Sustainable Development Goals (SDGs), the Nationally 
Determined Contributions (NDCs) under the Paris Agreement, and the 
gender equity mandates of the Magna Carta of Women.
This version builds on earlier legislative proposals and stakeholder drafts but 
introduces improvements to strengthen institutional alignment, monitoring and 
evaluation, and fiscal feasibility. It simplifies governance by assigning leadership to the 
Department of Trade and Industry (DTI), in coordination with the National Anti-Poverty 
Commission (NAPC), and avoids unnecessary duplication by leveraging existing MSME 
structures and oversight mechanisms.
By enacting this measure, we put in place a durable policy framework that 
recognizes the transformative role of social enterprises in building a just economy—one 
that puts the poor at the center of development, not at the margins.
In view of the foregoing, the urgent passage of this bill is sought.
LOREN LEGARDA


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE
S. No. f 89
'^arri^(©fKtr of tiK S', rct.irp
25 AUG-4 PI :11
\
RECEIVtO 8V
Introduced by Senator Loren Legarda
AN ACT
INSTITUTIONALIZING THE POVERTY REDUCTION THROUGH SOCIAL 
ENTREPRENEURSHIP (PRESENT) PROGRAM, PROMOTING SOCIAL 
ENTERPRISES WITH THE POOR AS PRIMARY STAKEHOLDERS, AND 
STRENGTHENING SUPPORT SYSTEMS FOR SOCIAL IMPACT ECONOMIES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
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Section 1. Short Title. - This Act shall be known as the "Poverty Reduction
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through Social Entrepreneurship (PRESENT) Act."
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Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to
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promote a just, inclusive, and sustainable economic system that empowers the poor
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and marginalized to become productive contributors to national development. The
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State recognizes the role of social enterprises as mission-driven organizations that
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pursue economic activities primarily to uplift the conditions of disadvantaged groups
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by engaging them as workers, suppliers, owners, or clients and reinvesting the
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majority of their profits to further their social mission.
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To this end, the State shall:
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a) Create an enabling environment that supports the development, growth,
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and sustainability of social enterprises;
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b) Facilitate the integration of social enterprises into government poverty
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reduction and local economic development plans;
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c) Ensure access to finance, markets, technology, and capacity-building for
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social enterprises;


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d) Promote inclusive, equitable, and environmentally sustainable business 
models;
e) Encourage innovation in addressing systemic social problems through 
entrepreneurship;
f) Rationalize and align support mechanisms from government agencies to 
avoid fragmentation and duplication of poverty reduction programs;
g) Promote the rights of women and marginalized sectors by advancing 
gender equality, social equity, and environmental justice through 
enterprise-based solutions.
Sec. 3. Definition of Terms. - For purposes of this Act:
a) "Social Enterprise (SE)" refers to any legally registered organization, 
regardless of form, that pursues a primary mission of addressing poverty 
or social exclusion through economic activity, and reinvests at least sixty 
percent (60%) of its net profits into programs that benefit the poor and 
marginalized. Such entities must demonstrate active engagement of the 
poor as workers, suppliers, owners, or beneficiaries.
b) "Certified SE" refers to a social enterprise that has been accredited by 
the Department of Trade and Industry (DTI) upon satisfying defined 
impact and operational criteria, and is duly registered in the National 
Social Enterprise Registry.
c) "Marginalized Sectors" refer to groups identified in Republic Act No. 8425 
(Social Reform and Poverty Alleviation Act) and Republic Act No. 9710 
(Magna Carta of Women), including but not limited to: farmers, 
fisherfolk, women, informal workers, persons with disabilities, 
indigenous peoples, senior citizens, urban poor, and disaster-affected 
populations.
d) "Social Enterprise Resource Institutions (SERI)" refer to academic 
institutions, non-governmental organizations, cooperatives, or 
enterprises that provide support services—such as training, research, 
market development, or technology transfer—to social enterprises.


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e) "Social Enterprise Development Fund (SEDF)" refers to the fund
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established under this Act to support grants, financing, insurance, and
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ecosystem-building activities for social enterprises.
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Sec. 4. PRESENT Program. - The Poverty Reduction through Social
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Entrepreneurship (PRESENT) Program is hereby institutionalized as a flagship program
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of the government to support the emergence and scaling up of social enterprises
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across the country. The DTI, through its Bureau of Micro, Small and Medium Enterprise
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(MSME) Development, and in coordination with the National Anti-Poverty Commission
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(NAPC), shall serve as the lead implementing agency.
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The PRESENT Program shall:
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a) Identify and support social enterprises operating in strategic economic
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subsectors with high potential for inclusive growth;
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b) Provide access to business development services, technical assistance,
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market linkages, and digital transformation;
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c) Integrate social enterprises into national and local development
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planning, including Local Development Investment Plans;
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d) Promote inclusive and sustainable value chains that enhance the
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participation and benefit of the poor and marginalized;
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e) Recognize the role of social enterprises in achieving the Sustainable
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Development Goals, particularly zero poverty, gender equality, decent
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work, reduced inequalities, and responsible consumption and
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production;
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f) Strengthen the resilience and preparedness of social enterprises for
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disaster risk reduction, climate change adaptation, and recovery from
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crises or shocks, including pandemics.
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Sec. 5. Accreditation and Registry. - The DTI shall establish and maintain a
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National Social Enterprise Registry. Only Certified SEs listed in this registry shall be
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eligible to access the benefits and support provided under this Act.
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Accreditation shall be based on the following minimum criteria:
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a) Demonstrated reinvestment of at least sixty percent (60%) of net profits
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for the benefit of marginalized stakeholders;


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b) Evidence of direct engagement of marginalized groups in enterprise 
operations or governance;
c) Submission of annual impact and financial reports, including data on 
beneficiaries, employment generated, and community outcomes;
d) Verification by a third-party validator or community-based certification 
mechanism, as may be defined in the implementing rules and 
regulations.
Sec. 6. Access to Finance.
a) Government financial institutions, including the Land Bank of the 
Philippines (LBP), Development Bank of the Philippines (DBP), and other 
government-owned or -controlled banks, shall allocate at least five 
percent (5%) of their loanable funds for special credit facilities for 
Certified SEs. These facilities shall feature flexible terms, low collateral 
requirements, and interest rates below prevailing market levels.
b) A Social Enterprise Guarantee Fund shall be established and 
administered by the Small Business Corporation (SBC) to guarantee non- 
collateralized loans extended to Certified SEs, including performance 
bond guarantees for government procurement participation.
c) DTI, in partnership with the private sector and multilateral institutions, 
shall promote hybrid financing options combining grants, equity 
investments, and concessional loans to fund social enterprise growth 
and innovation.
Sec. 7. Incentives and Support.
a) Certified SEs shall be eligible to access the following:
i. 
Startup and capacity-building grants under the Social Enterprise 
Development Fund;
ii. 
Preferential access to at least ten percent (10%) of government 
procurement, subject to guidelines issued by the Government 
Procurement Policy Board (GPPB); and
iii. 
Access to microinsurance and customized insurance products 
endorsed by the Insurance Commission (IC);


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b) SEs that are women-led or actively engage informal workers in their
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formalization efforts shall be prioritized for technical support, tax
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incentives, and partnerships with local governments and cooperatives.
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Sec. 8. Education and Awareness. - The Department of Education (DepEd), the
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Commission on Higher Education (CHED), and the Technical Education and Skills
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Development Authority (TESDA) shall incorporate social entrepreneurship education
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in appropriate academic and vocational curricula. Continuing education programs shall
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also be developed for community-based learners and out-of-school youth, focusing on
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inclusive business models, sustainability, and value-based enterprise development.
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The social enterprise curriculum shall include concepts such as fair trade,
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environmental stewardship, gender justice, and community transformation.
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Sec. 9. Monitoring and Accountability. - An Independent Social Enterprise
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Impact Committee shall be created under the Congressional Oversight Committee on
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MSMEs. It shall:
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a) Review and assess annual implementation reports submitted by the
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Department of Trade and Industry, including budget utilization and
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outcomes achieved;
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b) Oversee the integrity of the accreditation and registry process;
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c) Evaluate compliance by government agencies and financial institutions
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with the mandates of this Act; and
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d) Recommend policy or budgetary adjustments to improve program
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delivery.
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Sec. 10. Appropriations. - An initial amount of One Billion Pesos
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(P1,000,000,000.00) shall be appropriated from the current year's budget of the DTI
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for the implementation of this Act. The fund may be augmented from the following
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sources:
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a) A minimum of two percent (2%) of annual collections from sin tax
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revenues and Tourism Infrastructure and Enterprise Zone Authority
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earnings, subject to existing laws;
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b) Official development assistance, foreign grants, and donations from
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private foundations and philanthropies;and


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c) Undisbursed portions of the fund from the preceding fiscal year, which
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shall be carried over to the succeeding year.
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Sec. 11. Implementing Rules and Regulations. - Within ninety (90) days from
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the effectivity of this Act, the DTI, in consultation with the NAPC, Department of
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Finance (DOF), Bangko Sentral ng Pilipinas (BSP), Department of Budget and
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Management (DBM), GPPB, IC, and accredited social enterprise stakeholders, shall
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promulgate the necessary implementing rules and regulations to carry out the
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provisions of this Act.
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Sec. 12. Separability Clause. - If any provision of this Act is declared
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unconstitutional or invalid, the remaining provisions shall remain in full force and
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effect.
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Sec. 13. Repealing Clause. - All laws, presidential decrees, executive orders,
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rules and regulations, or parts thereof inconsistent with the provisions of this Act are
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hereby repealed or amended accordingly.
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Sec. 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) national newspapers of general
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circulation.
Approved,