BUSINESS FINANCIAL
ASSISTANCE
REPUBLIC OF THE PHILIPPINES
QUESTION
: IS THERE ANYONE WHO CAN HELP YOU FINANCIALLY IN SETTING UP
A
BUSINESS?
ANSWER : YES, THE BARANGAY MICRO BUSINESS ENTERPRISE LAW
REPUBLIC ACT NO. 9178
Republic of the Philippines
Congress of the Philippines
Metro
Manila
Twelfth Congress
Second Regular Session
Begun and
held in Metro Manila, on Monday, the twenty-second day of July, two thousand
two.
Republic Act No. 9178
November 13, 2002
AN ACT TO PROMOTE THE ESTABLISHMENT OF BARANGAY MICRO
BUSINESS ENTERPRISES (BMBEs), PROVIDING INCENTIVES AND BENEFITS THEREFOR, AND
FOR OTHER PURPOSES.
Be it enacted by the Senate and House of
Representatives of the Philippines in Congress assembled.
PRELIMINARY PROVISIONS
Section 1. Short
Title – This Act shall be known as the "Barangay Micro
Business Enterprises (BMBE's) Act of 2002."
Section 2. Declaration
of Policy – It is hereby declared to be the policy of the State to
hasten the country's economic development by encouraging the formation and
growth of barangay micro business enterprises which effectively serve as
seedbeds of Filipino entrepreneurial talents, and intergranting those in the
informal sector with the mainstream economy, through the rationalization of
bureaucratic restrictions, the active granting of incentives and benefits to
generate much-needed employment and alleviate poverty.
Section 3. Definition
of Terms – As used in this Act, the following terms shall mean:
(a)
"Barangay Micro Business Enterprise," hereinafter referred to as
BMBE, refers to any business entity or enterprise engaged in the production,
processing or manufacturing of products or commodities, including
agro-processing, trading and services, whose total assets including those
arising from loans but exclusive of the land on which the particular business
entity's office, plant and equipment are situated, shall not be more than Three
Million Pesos (P3,000,000.00) The Above definition shall be subjected to review
and upward adjustment by the SMED Council, as mandated under Republic Act No.
6977, as amended by Republic Act No. 8289.
For the
purpose of this Act, "service" shall exclude those rendered by any
one, who is duly licensed government after having passed a government licensure
examination, in connection with the exercise of one's profession.
(b)
"Certificate of Authority" is the certificate issued granting the
authority to the registered BMBE to operate and be entitled to the benefits and
privileges accorded thereto.
(c)
"Assets" refers to all kinds of properties, real or personal, owned
by the BMBE and used for the conduct of its business as defined by the SMED
Council: Provided, That for
the purpose of exemption from taxes and fees under this Act, this term shall
mean all kinds of properties, real or personal, owned and/or used by the BMBE
for the conduct of its business as defined by the SMED Council.
(d)
"Registration" refers to the inclusion of BMBE in the BMBE Registry
of a city or municipality.
(e)
"Financing" refers to all borrowings of the BMBE from all sources
after registration.
REGISTRATION AND OPERATION OF BMBE
Section 4. Registration
and Fees - The Office of the Treasurer of each city or municipality
shall register the BMBE's and issue a Certificate of Authority to enable the
BMBE to avail of the benefits under this Act. Any such applications shall be
processed within fifteen (15) working days upon submission of complete
documents. Otherwise, the BMBEs shall be deemed registered. The Municipal or
City Mayor may appoint a BMBE Registration Officer who shall be under the
Office of the Treasurer. Local government units (LGU's) are encouraged to establish
a One-Stop-business Registration Center to handle the efficient registration
and processing of permits/licenses of BMBEs. Likewise, LGUs shall make a
periodic evaluation of the BMBE's financial status for monitoring and reporting
purposes.
The LGUs
shall issue the Certificate of Authority promptly and free of charge. However,
to defray the administrative costs of registering and monitoring the BMBEs, the
LGUs may charge a fee renewal.
The
Certificate of Authority shall be effective for a period of two (2) years,
renewable for a period of two (2) years for every renewal.
As much as
possible, BMBEs shall be subject to minimal bureaucratic requirements and
reasonable fees and charges.
Section 5. Who
are Eligible to Register – Any person, natural or juridical, or
cooperative, or association, having the qualifications as defined in Section
3(a) hereof may apply for registration as BMBE.
Section 6. Transfer
of Ownership - The BMBE shall report to the city or municipality of
any changer in the status of its ownership structure, and shall surrender the
original copy of the BMBE Certificate of Authority for notation of the
transfer.
INCENTIVES AND BENEFITS
Section 7. Exemption
from Taxes and Fees – All BMBEs shall be exempt from tax for income
arising from the operations of the enterprise.
The LGUs
are encouraged either to reduce the amount of local taxes, fees and charges
imposed or to exempt BMBEs from local taxes, fees and charges.
Section 8. Exemption
from the Coverage of the Minimum Wage Law – The BMBEs shall be
exempt from the coverage of the Minimum Wage Law: Provided, That all employees covered under this Act shall
be entitled to the same benefits given to any regular employee such as social
security and healthcare benefits.
Section 9. Credit
Delivery – upon the approval of this Act, the land Bank of the
Philippines (LBP), the Development Bank of the Philippines (DBP), the Small
Business Guarantee and Finance Corporation (SBGFC), and the People's Credit and
Finance Corporation (PCFC) shall set up a special credit window that will
service the financing needs of BMBEs registered under this Act consistent with
the Banko Sentral ng Pilipinas (BSP) policies; rules and regulations. The
Government Service Insurance System (GSIS) and Social Security System (SSS)
shall likewise set up a special credit window that will serve the financing
needs of their respective members who wish to establish a BMBE. The concerned
financial institutions (FIs) encouraged to wholesale the funds to accredited
private financial institutions including community-based organizations such as
credit, cooperatives, non-government organizations (NGOs) and people's
organizations, which will in turn, directly provide credit support to BMBEs.
All loans
from whatever sources granted to BMBEs under this Act shall be considered as
part of alternative compliance to Presidential Decree no, 717,, otherwise known
as the Agri-Agra Law, or to Republic Act. No. 6977, known as the Magna Carta
for Small and Medium Enterprises, as amended. For purposes of compliance with
presidential Decree no. 717 and Republic Act No. 6977, as amended, loans
granted to BMBEs under this Act shall be computed at twice the amount of the
face value of the loans.
To minimize
the risks in lending to the BMBEs, the SBGFC and the Quedan and Rural Credit
Guarantee Corporation (QUEDANCOR) under the Department of Agriculture, in case
of agribusiness activities, shall set up a special guarantee window to provide
the necessary credit guarantee to BMBEs unde rtheir respective guarantee
programs.
The LBP,
DBP. PCFC, SBGFC, SSS, GSIS, and QUEDANCOR shall annually report to the
appropriate Committee of Both Houses of Congress on the status of the
implementation of this provision.
The BSP
shall formulate the rules for the implementation of this provision and shall
likewise establish incentive programs to encourage and improve credit delivery
to the BMBEs.
Section 10. Technology
Transfer, Production and Management Training, and marketing Assistance – A
BMBE Development Fund shall be set up with an endowment of Three Hundred
Million pesos (P300,000,000.00) from the Philippine Amusement and Gaming
Corporation (PAGCOR) and shall be administered by the SMED Council.
The
Department of Trade and Industry (DTI), the Department of Science and
Technology (DOST), the university of the Philippines Institute for Small Scale
Industries (UP ISSI), Cooperative Development Authority (CDA), Technical
Education and Skills Development Authority (TESDA), and Technology and
Livelihood Resource Center (TLRC) may avail of the said Fund for technology
transfer, production and management training and marketing assistance to BMBEs.
The DTI, in
coordination with the private sector and non-government organization (NGOs),
shall explore the possibilities of linking or matching-up BMBEs with small,
medium and large enterprises and likewise establish incentives therefor.
The DTI, in
behalf of the DOST, UP ISSI, CDA. TESDA and TLRC shall be required to furnish
the appropriate Committees of both Houses of Congress a yearly report on the
development and accomplishments of their projects and programs in relation to
technology transfer, production and management training and marketing
assistance extended to BMBEs.
Section 11. Trade
and Investment Promotions – The data gathered from business
registration shall be made accessible to and shall be utilized by private
sector organizations and non-government organizations for purposes of business
matching, trade and investment promotion.
INFORMATION DISSEMINATION
Section 12. Information
Dissemination - The Philippine Information Agency (PIA), in
accordance with the Department of Labor and Employment (DOLE), the DILG and the
DTI, shall ensure the proper and adequate information dissemination of the
contents and benefits of this Act to the general public especially to its
intended beneficiaries specifically in the barangay level.
PENALTY
Section 13. Penalty
- Any person who shall willfully violates any provision of this Act
or who shall in any manner commit any act to defeat any provisions of this Act
shall, upon conviction, be punished by a fine of not less than twenty-five
Thousand Pesos (P25,000.00) but not more than Fifty Thousand Pesos (P50,000.00)
and suffer imprisonment of not less than six (6) months but not more than two
(2) years.
In case of
non-compliance with the provisions of Section 9 of this Act, the BSP shall
impose administrative sanctions and other penalties on the concerned government
financial institutions, including a fine of not less than Five Hundred Thousand
Pesos (P500,000.00)
MISCELLANEOUS PROVISIONS
Section 14. Annual
Report – The DILG, DTI, and BSP shall submit an annual report to
the Congress on the status of the implementation of this Act.
Section 15. Implementing
Rules and Regulations – The Secretary of the Department of Trade
and Industry, in consultation with the Secretaries of the DILG, DOF, and the
BSP Governor shall formulate the necessary ruled and regulations to implement
the provisions of this Act within ninety (90) days after its approval. The
rules and regulations issued pursuant to this section shall take effect fifteen
(15) days after its publication in a newspaper of general circulation.
Section 16. Separably
Clause - If any provision or part hereof, is held invalid or
unconstitutional, the remainder of the law or the provision not otherwise
affected shall remain valid and subsisting.
Section 17. Repealing
Clause – Existing laws, presidential decrees, executive orders,
proclamations or administrative regulations that are inconsistent with the
provisions of this Act are hereby amended, modified, superseded or repealed
accordingly.
Section 18. Effectivity
– This Act shall take effect fifteen (15) days after its
publication in the Office Gazette or
in at least two (2) newspaper of general circulation.
Approved,
|
FRANKLIN DRILON
President
of the Senate
|
JOSE DE VENECIA JR.
Speaker
of the House of Representatives
|
This Act,
which is a consolidation of Senate Bill No. 1855 and House Bill No. 4871 was
finally passed by the Senate and the House of Representatives on October 24,
2002 and October 23, 2002, respectively.
|
OSCAR G. YABES
Secretary
of Senate
|
ROBERTO P. NAZARENO
Secretary
General
House of
Representatives
|
Approved:
November 13, 2002
GLORIA MACAPAGAL-ARROYO
President of the Philippines
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