Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
Introduced by HON. GUS S. TAMBUNTING 
AN ACT PROVIDING FOR GOVERNMENT FINANCIAL INSTITUTIONS 
UNIFIED INITIATIVES FOR DISTRESSED ENTERPRISES FOR ECONOMIC 
RECOVERY 
(GUIDE) 
EXPLANATORY NOTE 
Article Il, Section 20 of the 1987 Constitution provides that, "The State recognizes the 
indispensable role of the private sector, encourages private enterprise, and provides 
incentives to needed investments. " 
One of the priority bills of President Ferdinand R. Marcos, Jr. is the Government 
Financial Institutions (GFIs) Unified Initiatives to Distressed Enterprises for Economic 
Recovery also known as the “GUIDE” Act.”  
This bill seeks to provide financial assistance to distressed enterprises critical to 
economic recovery through programs and initiatives to be implemented by the Land 
Bank of the Philippines, the Development Bank of the Philippines, and the Philippine 
Guarantee Corporation for purposes of addressing liquidity or solvency problems of 
MSMEs and strategically important industries, to encourage their continued operations 
and maintain employment. 
On behalf of the people of Parañaque City’s Second District, and for the common good 
of the Filipino people, the approval of the said measure is earnestly sought. 
REP. GUS S. TAMBUNTING 
2nd District, Parañaque City 
August 31, 2022
8:54 am
4264


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
Introduced by HON. GUS S. TAMBUNTING 
AN ACT PROVIDING FOR GOVERNMENT FINANCIAL INSTITUTIONS 
UNIFIED INITIATIVES TO DISTRESSED ENTERPRISES FOR ECONOMIC 
RECOVERY (GUIDE) 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Title. — This Act shall be known as the "Government Financial 
Institutions (GFIs) Unified Initiatives to Distressed Enterprises for Economic Recovery 
(GUIDE) Act. " 
SEC. 2. Declaration of Policy. — It is hereby declared the policy of the state to protect 
employment and assist distressed enterprises to reinvigorate the economy. The State 
recognizes the role of these businesses composed of micro, small and medium enterprises 
(MSMEs) and strategically important companies in employing the Filipino people and in 
supporting the Philippine economy. Thus, it is these enterprises that must be necessary 
access to credit and financial assistance. 
SEC. 3. Definition of Terms. —As used in this Act: 
(a)Agribusiness value chain refers to a set of actors/players, such as farmers, fisherfolk,
traders, suppliers, processors, and aggregators, who make up the linked sequence of
value-adding activities undergone by an agricultural product when converted from raw
material to the final form it is presented to the consumers;
(b)Community Quarantine (CQ) refers to the enhanced community quarantine
imposed in the entire Luzon area under Presidential Proclamation No. 92 dated
16 March 2020, as may be extended or modified under such other laws,
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presidential proclamations or executive orders that may be subsequently issued 
or promulgated to contain the spread of COVID-19; 
 
(c) Critically impacted businesses refer to non-essential businesses that have been 
directly and adversely impacted by the COVID-19 outbreak such that (i) them 
liabilities have become more than their assets, or (ii) they have experienced at 
least a [50%] decline in gross receipts for at least one calendar quarter, and in 
either instance, are generally unable to pay or perform their obligations as they 
fall due in the ordinary course of business, as a result of the COVID-19 outbreak. For 
purposes of this Act, Critically-Impacted Business shall include the air transport industry, 
tourism industry, and export-import industry, but 
shall exclude banks and other financial institutions under the supervision of the Bangko 
Sentral ng Pilipinas (BSP); 
 
(d) Micro, Small, and Medium Enterprises (MSMEs) refer to any business activity or 
enterprise engaged in industry, agribusiness, and/or services, whether single 
proprietorship, cooperative, partnership, or corporation whose total assets, 
inclusive of those arising from loans but exclusive of the land on which the particular 
business entity's office, plant, and equipment are situated, must have values falling under 
the following categories: 
Micro: not more than PHP 3,000,000.00 
Small: PHP 3,000,000.01- PHP 15, 000,000.00 
Medium: PHP 15,000,000.01- PHP 100,000,000.00  
 
 
(e) Non-essential businesses refer to business entities engaged in businesses that are not 
allowed to operate during the CQ under applicable laws, presidential proclamations, or 
executive orders issued or promulgated to contain the spread of COVID-19. The term 
excludes business entities allowed to operate during CQ such as those related to (i) the 
production and sale of goods, or provision of services related to food, medicine, and health 
supplies, such as public markets, supermarkets, groceries, convenience stores, hospitals, 
medical clinics, pharmacies, and drug stores, (ii) food preparation and delivery services, 
water refilling stations, manufacturing and processing plants of basic food products and 
medicines, (iii) banks and financial institutions under the supervision of the BSP, and (iv) 
utility services involving power, energy, water, and telecommunications; 
 
(f) Senior executive officers refer to top management officials exercising 
responsible 
and critical roles, as may be determined in the implementation rules and regulations. 
 


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CHAPTER i 
 
Philippine Guarantee Corporation 
SEC. 4. Loan Guarantee Expansion by PGC. — To ensure that non-essential businesses 
can fulfill their loan obligations, whether existing, outstanding, or new loans, to banks, 
lending or financing institutions, and to help strengthen the liquidity and financial position of 
these non-essential businesses towards expediting the country's economic recovery, the 
Philippine Guarantee Corporation (PGC) shall: 
 
a. Issue an expanded government guarantee program for non-essential businesses 
by increasing the maximum loan guarantee coverage per borrower, widening the 
coverage of guarantees to loans provided by non-bank financial institutions and 
lending and financing companies supervised by the Securities and Exchange 
Commission (SEC), reducing eligibility requirements and guarantee fees, waiving 
the benefit of excussion under the guarantee, relaxing the guidelines on claims by 
allowing lenders to call on the guarantee when there is an occurrence of payment default, 
and any other measures necessary to give non-essential businesses and MSME+ access 
to better terms of credit. 
b. Ease its current rules and regulations and give preference to critically impacted 
businesses and MSME, including those in the informal sector, in issuing government 
guarantees to help achieve the policy objectives of this Act. 
c. PGC is mandated to implement a loan portfolio guarantee scheme whereby it 
can guarantee a specified loan portfolio of partner financial institutions which 
cover eligible MSME loans subject to the criteria set under the Implementing Rules and 
Regulations. The criteria for accrediting partner financial institutions shall likewise be 
stipulated therein. 
For the efficient and faster implementation of the Section, the PGC may require assistance, 
such as facilities and personnel resources, from other government financial institutions. The 
PGC shall also implement measures aimed at the digital transformation of its guarantee 
application and enrollment process. The PGC shall coordinate with the DICT, Bangko 
Sentral ng Pilipinas (BSP), and solicit assistance from the private sector for the proper 
implementation of this Section. The guarantee programs of PGC should meet the applicable 
standards and regulations of the BSP. 
 
SEC. 5. Trust Fund of PGC. — For the implementation of Section 4 hereof, a trust fund for 
Twenty Billion Pesos (PhP20,000,000,000.00) is hereby established. The PGC may retain 
the guarantee fee from loans as an administrative fee. 
 
The PGC may process and grant loan guarantees to qualified businesses within three years 
from the effectivity of this Act unless the President of the Philippines extends it for not more 
than three years. Upon the maturity of all the loans, the PGC shall start to wind up its 


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activities, which shall be completed within two (2) years. The remaining amount of the fund 
shall be returned to the National Treasury. 
 
 
CHAPTER 2 
 
Development Bank of the Philippines 
SEC. 6. DBP Loan Assistance Program. — The Development Bank of the Philippines (DBP) 
shall introduce an interest-free loan program available to MSMEs to assist and encourage 
them to continue investing in their businesses: Provided, that the interest-free loans shall 
be granted by the following guidelines 18 and such other conditions as may be imposed 
under the implementing rules that will 19 be issued by the Department of Finance (DOF) 
and the BSP: 
 
(a) The loan shall be payable within three (3) to five (5) years: Provided, further that priority 
shall be given to infrastructure, services, and manufacturing business. 
 
(b) The loans to eligible MSMEs should meet the applicable standards and regulations of 
the BSP. 
Notwithstanding the foregoing, the President of the Philippines shall have the power to (i) 
declare a moratorium on the payment of loans of MSMEs; (ii) make available emergency 
loans to MSMEs in critically-impacted businesses for an additional capital outlay under this 
Section, and (iii) ease regulations to ensure that MSMEs have facilitated access to the loan 
facility provided herein. 
 
SEC. 7. DBP Rediscounting and other Programs. — Subject to applicable standards and 
regulations of the BSP, DBP may rediscount loans and other credit accommodations to 
enterprises enumerated in Section 6(a) above granted by BSP- supervised Financial 
Institutions (BSFIs), Small Business corporations (SBC), and those granted under credit 
programs of the Department of Agriculture Agricultural Credit Policy Council (DA-ACPC) to 
MSMEs affected by the Coronavirus Disease 2019 (COVID-19) pandemic engaged in 
infrastructure, service industry, and/or manufacturing businesses. 
DBP may undertake other similar activities for purposes of this Act as may be provided 
under the implementing rules and regulations to be issued. 
SEC. 8. Trust Fund of DBP. — For the implementation of Chapters 2 and 4 hereof, a trust 
fund for Fifteen Billion Pesos is hereby established. The DBP may retain the amount 
equivalent to one per centum (1%) of collections from loans as an administrative fee. 
 
The DBP may process and grant loans and rediscounting to qualified businesses within 
three years from the effectivity of this Act unless the President of the Philippines extends it 
for not more than three years. Upon the maturities of all the loans, the DBP shall start to 


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wind up its activities, which shall be completed within two years. The remaining amount of 
the fund shall be returned to the National Treasury. 
 
CHAPTER 3 
Land Bank of the Philippines 
SEC. 9. LBP Loan Assistance Program. — The Land Bank of the Philippines (LBP) shall 
introduce an interest-free loan program available to MSMEs engaged in activities in the 
agribusiness value chain and encourage them to continue investing in their businesses: 
Provided, That the interest-free loans shall be granted by the following guidelines and such 
other conditions as may be imposed under the implementing rules that will be issued by the 
DOF and the BSP: 
 
(a) The loan shall be payable within three to five years: Provided, further, That priority shall 
be given to Agri-fishery businesses and non-essential businesses that are small and 
medium enterprises. 
 
 (b) The loans to eligible MSMEs should meet the applicable standards and regulations of 
the BSP. 
Notwithstanding the foregoing, the President of the Philippines shall have the power to (i) 
declare a moratorium on the payment of loans of MSME; (ii) make available emergency 
loans to MSME in critically-impacted businesses for additional capital outlay under this 
Section, and (iii) ease regulations to ensure that MSME has facilitated access to the loan 
facility provided herein. 


 
SEC. 10. LBP Rediscounting and other Programs. — Subject to applicable standards and 
regulations of the BSP, LBP may rediscount loans to eligible MSMEs engaged in activities 
in the agribusiness value chain granted by BSFIs, SBC, and those granted under credit 
programs of the DA-ACPC to MSMEs affected by the COVID- 19 pandemic. LBP may 
undertake other similar activities for purposes of this Act as may be provided under the 
implementing rules and regulations to be issued. 
 
SEC. 11. Trust Fund of LBP. — For the implementation of Chapters 3 and 4 hereof, a trust 
fund for Thirty-Five Billion Pesos (PhP35,000,000,000.00) 12 is hereby established. The 
LBP may retain the amount equivalent to one per centum 13 (1%) of collections from loans 
as an administrative fee. The LBP may process and grant loans and rediscounting to 
qualified businesses within three years from the effectivity of this Act unless the President 
of the Philippines extends it for not more than three (3) years. Upon the maturity of all the 
loans, the DBP shall start to wind up its activities, which shall be completed within two years. 
The remaining amount of the fund shall be returned to the National Treasury. 
 
CHAPTER 4 Strategically Important Companies 
SEC. 12. Loans to Strategically Important Companies. — To ensure that strategically 
important companies remain solvent, LBP and DBP are hereby authorized to offer interest-
free loans to facilitate the rehabilitation of strategically important companies affected by the 
COVID-19 pandemic that are experiencing solvency issues, such as those with 
considerable impact on the economy including those from the agriculture, infrastructure, 
service industry, and manufacturing industries and  other industries to be identified in the 
implementing rules and regulations, subject to  the following conditions: 
 
(a) The debtor company must not reduce the number of employees beyond the percentage 
prescribed by the loaning institution, as may be determined in the implementing rules and 
regulations; 
(b) The debtor company shall not, without prior authorization from the loaning institutions, 
be allowed to issue stock dividends and repurchases during the 
terms of the loan; 
 
(c) The debtor company shall not issue cash dividends during the term of the 
loan; 
(d) The debtor company must not increase the salaries, benefits, and other 
forms of remuneration of its senior executive officers and members of its 
board; 
(e) The debtor company shall not provide or grant senior executive officers and 
members of its board separation pay or retirement pay: Provided, That any 
the amount received by the senior executive officers and members of the board 
which violates the foregoing shall be returned; 


7 
(f) The debtor company shall not incur irregular, unnecessary, excessive, extravagant, or 
unconscionable expenditures such as entertainment, events, office/facility renovations, 
aviation/transportation services, and other activities. 
CHAPTER 5 Incentives and Exemption Privileges of DBP and LBP, 
SEC. 13. Tax Exemptions and Fee Privileges. —Any existing law to the contrary 
notwithstanding and to ensure the effective implementation of the purposes 
of this Act, the following transactions of DBP, LBP, shall be exempt from documentary 
stamp tax, capital gains tax, creditable withholding income tax, value-added tax, gross 
receipts tax, and such other taxes that may be imposed under Republic Act No. 8424, 
as amended, or the "National Internal Revenue Code of 1997," whichever is applicable 
under the regulations to be issued by the DOF, upon the recommendation of the Bureau of 
Internal Revenue (BIR): 
(a) Loan Assistance Program, Rediscounting, and other Programs of DBP and 
LBP under Chapters 2 and 3 of this Act, respectively, includes dating in payments (dacion 
en pago) by the borrower or by a third party in favor of DBP and LBP. 
The abovementioned transfers shall also be subject to the following, instead of the 
applicable fees: 
(a) Fifty percent (50%) of the filing fees for any foreclosure initiated by DBP 
and LBP about Loan Assistance and Rediscounting Programs as 
prescribed by the Rules of Court; and 
 
(b) Fifty percent (50%) of the land registration fees prescribed under the existing circulars 
of the CRA. 
All sales or transfers of rediscounted loans/other credit accommodations, 
including transfers by way of dation in payment by the borrower or by a third party to 
DBP and LBP shall be entitled to the privileges enumerated herein for a period of not 
more than three years from the date of effectivity of the applicable implementing rules and 
regulations or of the applicable revenue regulations, whichever comes later: Provided, That 
the Secretary of Finance may extend such period by a maximum of three years. 
 
CHAPTER 6 
Miscellaneous Provisions 
SEC. 14. Appropriations. — The amount of Seventy Billion Pesos (PHP 14 
70,000,000,000.00) is hereby appropriated from the funds in the National Treasury not 
otherwise appropriated to implement the provisions of this Act. 
SEC. 15. Implementing Rules and Regulations. —Within 30 days from the effectivity of this 
Act, the DOF, acting as chairperson, the BIR, the BSP, the PGC, 
the DBP and the LBP shall jointly promulgate the necessary rules and regulations for 


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the effective implementation of this Act: Provided, That the DOF may call upon any 
agency to provide information or assistance in the drafting of the rules and 
regulations: Provided, Further, that within 30 days from the effectivity of this Act, the DOF, 
upon recommendation of the BIR, shall promulgate the revenue regulations implementing 
the fiscal incentives under this Act. 
 
SEC. 16. Oversight Committee. —There is hereby created a Joint Congressional 
Oversight Committee (JCOC) to oversee, monitor, and evaluate the implementation of 
this Act. The JCOC shall be composed of five (5) members each from the House of 
Representatives and from the Senate. The JCOC shall be co-chaired by the 
Chairpersons of the House Committee on Banks and Financial Intermediaries and the 
Senate Committee on Banks, Financial Institutions and Currencies, with the Senate 
and House of Representatives Chairpersons of the Committees on Economic Affairs, Trade, 
Commerce and Entrepreneurship, Cooperatives, and one member each from the minority 
as members. 
 
SEC. 17. Reports. -The PGC, LBP, and DBP shall submit reports to the DOF, DTI, and the 
JCOC regarding the implementation of this Act. 
CHAPTER 7 Final Provisions 
 
SEC. 18. Separability Clause. — If, for any reason or reasons, any part or 
provision of this Act shall be declared as unconstitutional or invalid, the other parts or 
provisions hereof which are not affected thereby shall continue to be in full force and effects. 
SEC. 19. Repealing Clause. —All provisions of existing laws, orders, rules, and regulations 
or parts thereof which are in conflict or inconsistent with the provisions of this Act are hereby 
repealed, amended, or modified accordingly. 
SEC. 20. Effectivity. — This Act shall take effect immediately upon its publication in the 
Official Gazette or a newspaper of general circulation in the Philippines. 
Approved,