Metro Manila (CNN Philippines, August 24) – The House of Representatives passed on third and final reading a bill that institutionalizes the government’s socialized micro financing program for micro enterprises in the country.
A total of 215 congressmen unanimously voted to pass House Bill No. 9533, also known as the Pondo sa Pagbabago at Pag-asenso (P3) Act.
The measure seeks the creation of the P3 Fund which will be lent out to qualified micro enterprises through accredited partner financial institutions like rural banks, development banks, thrift banks, and cooperative banks.
The implementation of the P3 Fund will be under the supervision of the Small Business Corporation (SB Corp), the financing arm of the Department of Trade and Industry.
The bill also provides the allowable interest rate, including service fees and other charges, which must not exceed 12% per annum.
The loanable amount will be reviewed by the Micro, Small, and Medium Enterprise Development Council.
P3 is one of the current programs implemented by SB Corp in 2017 to encourage small borrowers to not patronize loan sharks like the “5-6” lending scheme.
Under the P3 program, borrowers can lend from ₱5,000 to ₱200,000 with an interest rate not exceeding 2.5%.
