Business
Bill to institutionalize P3
Program filed in Senate
Senator Aquilino
“Koko” Pimentel
III
S
Credits: senate,gov,ph
enator Aquilino “Koko” Pimentel III filed on September
19, 2018 a Senate Bill that will institutionalize the Pondo
sa Pagbabago at Pag-asenso (P3) Program to further
strengthen the landmark micro loan program of Pres-
ident Rodrigo Duterte that will provide relief to micro
enterprises through alternative source of financing.
The Senate Bill No. 2017 or “An Act Providing a So-
cialized Microfinancing Program for Micro Enterprises
Thereby Promoting Entrepreneurship” aims to address
financing concerns of micro enterprises throughout the country and help
them sustain their businesses.
Trade Secretary Ramon M. Lopez welcomed the news, saying it will fur-
ther ensure funds are made available for micro enterprises to veer them
away from onerous loans, particularly the “5-6” money-lending system.
“This is another milestone as we continue our drive to empower
our MSMEs and alleviate poverty. Through this bill, we will be able
to assist more entrepreneurs to have easy access to P3 loans that
come in one-form, one-day processing, and don’t require any collat-
eral, especially those in the countryside,” said Sec. Lopez.
On the other hand, Small Business Corporation (SB Corp) Presi-
dent and CEO Ma. Luna E. Cacanando said the filing of the Senate
Bill will strengthen the Corporation’s mandate and will greatly con-
tribute to the development of micro enterprises, which comprises
the bulk of the micro, small and medium enterprise (MSME) sector.
Micro enterprises account for 90% out of the 99.6% from the
MSME sector.
As the financing arm of the Department of Trade and Industry
(DTI), SB Corp is tapped as the lead implementing agency of the P3
Program and is tasked to handle the fund delivery through direct
lending to micro enterprises, wholesale lending to conduits that
on-lend to micro enterprises.
Likewise, the House of Representatives in June 2018 also adopted
a bill that will establish P3 Program as an affordable and easy access
alternative source of financing for micro enterprises.
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Under House Bill No. 7446 or the "Pondo sa Pagbabago at
Pag-asenso" or "P3 Act," the House of Representatives seeks the
creation of the “Pondo sa Pagbabago and Pag-asenso” or the P3
Fund, which will be made available for beneficiaries such as market
vendors, agri-businessmen and members of cooperatives, industry
associations, and cooperators.
As of September 9, 2018, the P3 Program has assisted over 50,000
micro enterprises throughout the country with a total of P1.5 billion
of released loans.
Under the P3 Program, a micro enterprise can borrow between
P5,000 up to P200,000 depending on its business need and repay-
ment capacity with no collateral requirement. Interest rate and
service fees, all in, do not exceed 2.5% monthly.
The P3 Program serves as an alternative to the P30 billion “5-6”
money lending industry that charges 20% nominal interest rate to
MSMEs.
“We thank Sen. Koko Pimentel for sponsoring this bill in the Sen-
ate and being our partner in strengthening the MSME sector,” said
Sec. Lopez.
www.dti.gov.ph