THE approval of the House of Representatives of the proposed amendments to Republic Act (RA) 6977, otherwise known as the Magna Carta for Small Enterprises, will fast track the growth of micro, small, and medium enterprises (MSMEs) in the region, the Department of Trade and Industry (DTI) said.
The initiative aims to provide more support for MSMEs who are actually the backbone of the country's economy.
The House approved the measure on third and final reading and it is expected to be signed before the 13th Congress ends.
House Bill (HB) 5811 or the "Act Promoting Entrepreneurship and Supporting the Development of MSMEs" has three major features, to wit: increase in the existing eight percent mandatory allocation of the bank's loan portfolios for MSMEs to 10 percent; mandating concerned agencies to relax procedural rules and requirements within their respective offices and in coordination with other agencies in terms of registration, for entrepreneurs availing financing and accessing other government services and assistance; and increase in capitalization and funding of the Small Business Corporation (SB Corp.) from its current authorized capital stock of P5 billion to P10 billion for the expansion of its lending and guarantee capacities.
DTI Assistant Secretary Merly M. Cruz said this development will further help the MSME sector improve their productivity and widen their market access. "Right now, this sector really needs some assistance on financial aspect and I'm glad that HB 5811 pays cognizance to this requirement," she said.
Cruz expressed optimism that when the bill is signed and implemented, more MSMEs will be developed in the Davao Region.
