House Bill seeks to expand lending programs to MSMEs as a way to revive their business and stimulate the local economy.
A bill seeking to expand the government's lending programs to micro small and medium enterprises has been approved by the House of Representatives.
At the hearing, the panel approved the Government Financial Institutions Unified Initiatives to Distressed Enterprises for Economic Recovery (GUIDE) — the first House Bill filed in the 19th Congress by House Speaker Ferdinand Martin Romualdez, Representatives Ferdinand Alexander Marcos (Ilocos Norte 1st district) and Tingog party-list Reps. Yedda Marie Romualdez and Jude Acidre.
House Bill No. 1 was consolidated with similar measures filed separately by Albay 2nd District Rep. Joey Salceda, Davao City 1st District Rep. Paolo Duterte, and Benguet Rep. Eric Go Yap.
The bill shall grant P7.5 billion to the Land Bank of the Philippines and P2.5 billion to the Development Bank of the Philippines (DBP) or P10 billion to be made available to MSMEs needing support for their businesses, the Inquirer reported.
The bill would also increase DBP’s capital stock from P35 billion to P100 billion, divided into one billion shares of P100 each.
“As a matter of procedure, we have to submit our approved committee report to the appropriations for funding and of course for ways and means for tax provision,” he added.
Not the first
GUIDE is not the first bill that was introduced in Congress as there was a similar bill that was approved in the 18th congress during their third reading. However, it did not reach the President’s desk due to time constraints in the Senate.
On January 8, former House Speaker Lord Allan Velasco asked the Senate to enact eight priority laws, including the GUIDE Act, before the 2022 election campaign season began. Committees may also dispose of priority bills that were previously presented and approved on third reading in the previous Congress.
The bill is crucial in helping the country recover from the scarring effects of the pandemic on Filipinos, specifically those who are doing business for a living. The bill would help these MSMEs in reviving their businesses and in return, stimulates the local economy.
“The pandemic has placed a severe strain on our economy. The previous Congress successfully passed several versions of the Bayanihan to Heal as One Act to cushion the economic impact of COVID-19. Nevertheless, our micro, small and medium enterprises remain struggling to survive the deleterious effects of the pandemic,” Acidre said.
“In view of the foregoing, it is our humble but firm belief that we need to create a more enabling environment for financial access for our MSMEs,” he added.
Tags: #MSME, #LendingPrograms, #Pandemic, #GUIDE