Microfinance

Microfinance ‘Nanays’ back Sen. Bam’s re-election bid, thank him for making free college a reality

TACLOBAN CITY — Hundreds of Microfinance ‘Nanays’ declared their support behind the re-election bid of Sen. Bam Aquino, saying he helped uplift their lives through his Free College Law and other laws in support of micro entrepreneurs.

The Microfinance ‘Nanays’, or microfinance beneficiaries, expressed their backing for Sen. Bam during a sectoral meeting here on Wednesday.

“At home na at home ako dito. Nakauwi ako sa sektor na malapit sa puso ko at pinaglingkuran ko noon, ang mga nanay sa komunidad na tinulungan namin sa Hapinoy na magnegosyo,” said Sen. Bam, referring to work with the microfinance sector during his time as social entrepreneur before becoming a senator.

In his speech, Sen. Bam said he drew inspiration from community-based mothers in pushing for the passage of the Free College Law, saying he wants to fulfill their dreams of seeing their children obtain a college degree.

“Ang pangarap ng mga magulang na makatapos ang kanilang anak sa kabila ng hirap sa buhay ang nagtulak sa akin na isulong ang Libreng Kolehiyo,” said Sen. Bam, who pushed for the passage of the landmark law as principal sponsor.

“Madalas kong nairirinig sa mga nakakausap kong magulang na simple lang ang pangarap nila, huwag maranasan ng mga anak nila ang hirap na dinanas nila,” he added.

If he wins a second term, Sen. Bam promised to push for the passage of his Trabaho Center Bill, which is aimed to solve the prevalent problem of jobs mismatch and high unemployment rate in the country.

“Kung makakabalik tayo sa Senado, isusulong ko ang Trabaho Center Bill kung saan pagtatagpuin ang mga naghahanap ng trabaho at ang mga kumpanyang naghahanap ng empleyado,” Sen. Bam said.

Sen. Bam emphasized that the Trabaho Center Bill is the next best crucial reform after the Free College Law to help uplift the lives of Filipinos, especially the poor.

Aside from the Free College Law, Sen. Bam also pushed other measures that support micro, small and medium enterprises and microfinance sector, such as the Go Negosyo Act, Microfinance NGOs Act, Credit Surety Fund Cooperative Act, and Personal Property Security Act.

MFI NGOs back Sen. Bam’s candidacy for his work in strengthening sector

An overwhelming number of microfinance non-government organizations (MFI NGOs) want re-electionist Sen. Bam Aquino back in the Senate for his solid track record in helping the sector develop and expand their capacity to extend assistance to more Filipinos.

SEDP-Simbag sa Pag-asenso, Inc., led by its president and CEO Fr. Jovic Lobrigo, was among the first to express support behind Sen. Bam, saying he was instrumental in passing Republic Act 10693 or the Microfinance NGOs Act benefiting millions of women and their families.

“Praying that he can continue his work in the Senate,” the group said in a statement posted on Facebook. 

Eduardo Jimenez, president of Kabalikat para sa Maunlad na Buhay, Inc. (KMBI), promised to definitely vote and campaign for Sen. Bam, who, he said, collaborated and supported microfinance players even before becoming a senator.

Jimenez added that Sen. Bam’s RA 10693 supported and strengthened the work of MFI NGOs that ultimately helped micro-entrepreneurs in the country.

Mercy Abad, president of Ahon sa Hirap, Inc (ASHI), said Sen. Bam has done a lot for the “common tao”, adding that the Microfinance NGOs Act has “helped our sector serve thousands of families.” 

“We in the microfinance industry cannot thank him enough for what he has done to assist us in our work,” said Abad, believing that the country needs leaders like Sen. Bam in the Senate.

“Intelligent, with integrity (naku sigurado kayong hindi kurakot), fearless, and hard working for our country, especially for the poor. Please include him in your vote,” added Abad.

Gomby Maramba, manager for Research and Development of the Negros Women for Tomorrow Foundation, also expressed gratitude to Sen. Bam for pushing for the passage of RA No. 10693 as principal sponsor and co-author. 

“The impact of this bill is huge for the over seven million microfinance clients and their families in the Philippines,” said Maramba.

“It allowed us to continue with our non-financial services and at the same time, all microfinance NGOs are now regulated to better serve its clients,” he added.

The law sets performance standards and provides preferential tax treatment for MFI NGOs to enable them to continue to operate and serve poor Filipino communities through financing, financial literacy, livelihood, and entrepreneurship training.

Aside from the MFI NGOs Act, Sen. Bam pushed for the passage of other laws for the development of micro, small and medium enterprises, such as the Go Negosyo Act, Youth Entrepreneurship Act, Credit Surety Act and the Personal Property Security Act.

Sen. Bam joins MFIs in celebrating anniversary of significant law, MFI NGOs Act

CEBU CITY – Sen. Bam Aquino joined the microfinance community here to celebrate the third anniversary of the enactment of Republic Act 10693 or the Microfinance NGOs Act, which he spearheaded as principal sponsor in the Senate.

The reform was signed into law on Nov. 3, 2015 and has since saved the sector P479.5 million, allowing MFI NGOs to help more Filipinos in need of low-interest, no-collateral loans.

In his speech during the Ramon Aboitiz Foundation Inc. (RAFI) Microfinance Entrepreneurs Summit, Sen. Bam thanked MFI NGOs for their role in crafting RA 10693 to help them become more effective in providing assistance to millions of Filipinos.

“Talagang maganda ang ating nakakamit kapag tayo’y nagtutulungan. Kaya po natin gumawa ng mga repormang nakakatulong sa ating mga kababayan,” Sen. Bam said.

“Thanks to our law, there are more micro-loans and more training programs from MFI NGOs for Filipino families and micro-entrepreneurs,” said Sen. Bam.

The senator also said that many micro-enterprises and local entrepreneurs inspired him to push for the passage of the law in the Senate, saying RA 10693 provides them the needed assistance and opportunity to succeed.

“Kaunting tulong, kaunting oportunidad at kaya nang iangat ng Pilipino ang kanilang pamilya. Kaunting tulong at matinding pagkayod at umaasenso ang pamilyang Pilipino,” said Sen. Bam.

Before he became a senator, Sen. Bam worked closely with MFI NGOs during his time as social entrepreneur and co-founder of Hapinoy program, which assists sari-sari store owners.

“Noong binigyan namin sila ng training sa negosyo, noong iniugnay natin sila sa MFIs para makakuha ng puhunan, nagawa nilang palaguin ang kanilang munting tindahan, mapaaral ang mga anak, at makalikha ng mas mabuting kinabukasan para sa kanilang pamilya,” said Sen. Bam. 

Republic Act 10693 gives incentives to MFI NGOs to continue helping Filipinos overcome poverty not just through financing but also through financial literacy, livelihood, and entrepreneurship training.

The law also provides MFI NGOs needed support and incentives that includes access to government programs and projects, technical assistance and exemption from taxes.

Sen. Bam’s advocacy for micro, small and medium enterprises inspired him to push for the enactment of several laws, such as the Go Negosyo Act, Youth Entrepreneurship Act, Credit Surety Act and the Personal Property Security Act.

Sen. Bam: Equipment, livestock and other personal property now OK as bank loan collateral

Filipinos will soon be able to use their personal properties, and not just land titles, as collateral for bank loans, according to Sen. Bam Aquino.

Sen. Bam said that President Duterte signed on Aug. 17 Republic Act 11057 or Personal Property Security Act, which he pushed in the Senate as principal author and co-sponsor.

With the law, Sen. Bam said micro, small and medium enterprises (MSMEs) will have better access to capital to grow their business since they’ll be allowed to use personal properties, like inventory and equipment, as collateral for loans.

“Sa batas na ito, mabibigyan na ang ating mga kababayan ng mas maraming paraan para makakuha ng pautang na maaari nilang gamitin para makapagsimula o di kaya’y magpalawak ng negosyo,” said Sen. Bam.

 “Sa tulong ng batas na ito, umaasa tayo na mas marami pang Pilipino ang makakapagsimula ng negosyo bilang pagkukunan ng ikabubuhay,” added Sen. Bam.

Usually, banks and other financial institutions prefer to immovable assets, like land, as collateral for loans. With this law, equipment, inventory, livestock, motor vehicles and receivables will now be accepted as collateral, creating a healthier loan environment for both MSMEs and banking institutions.

The law also provides safeguards to reduce the risk involved in accepting movable assets.

“This just one step towards inclusive finance in the Philippines. Tuloy pa rin ang aming pagtrabaho sa mga reporma para sa mga maliliit na negosyanteng Pilipino,” said Sen. Bam.

A known advocate of entrepreneurship and MSME development as a source of livelihood for poor Filipinos, Sen. Bam passed several laws to support the sector, including the Go Negosyo Act, Youth Entrepreneurship Act, Philippine Competition Act, Foreign Ships Co-Loading, Microfinance NGOs Act and the Credit Surety Fund Cooperative Act.

The Personal Property Security Act is Sen. Bam’s 27th law in his five years as senator.

Senate passes measure to improve access to financing for small business

The measure that will give micro, small and medium enterprises (MSMEs) better access to financing was approved by the Senate on third and final reading, according to its principal author, Sen. Bam Aquino.

Sen. Bam Senate Bill No. 1459 or the Personal Property Security Act hurdled the Senate on third and final reading via an overwhelming 21-0 vote. The House has already passed its version on 3rd and final reading.

“Makakatulong ito sa mga maliliit na negosyo na nahihirapan makakuha ng mga loan sa bangko. Suportahan natin ang paglago ng maliliit na negosyo na kabhuayan ng mga pamilyang Pilipino,” said Sen. Bam.

If passed into law, Sen. Bam said MSMEs will be allowed to use other properties, such as inventory and equipment, as collateral for loans. Usually, Sen. Bam said banks and other financial institutions prefer immovable assets like land.

“Sa panukalang ito, mas madali at mas ligtas para sa mga bangko ang magpautang sa mga maliliit na negosyo,” Sen. Bam pointed out, adding that banks are more likely to offer loans to our small businesses, thus helping them grow.

According to Sen. Bam, a former social entrepreneur, a successful business is a way out of poverty for many Filipinos.

“Ang pagpasa sa Personal Property Security Act ay pagsuporta sa mga maliliit na negosyo at pamilyang Pilipino,” Sen. Bam stressed.

Sen. Bam explained that assets of MSMEs are mostly personal in nature, including equipment, inventory, livestock, motor vehicles and receivables, which makes it difficult for them to meet bank requirements to get loan approvals.

With this measure, MSMEs can use these personal properties and assets as collateral in acquiring loans from banks and other financial institutions.

During the technical working group (TWG) conducted by the Committee on Banks, different financial associations and concerned government agencies have supported the passage of the measure.

Sen. Bam said the proposal can provide a win-win situation for both MSMEs and banks with a healthier loan environment.

Countries like China, Vietnam and Mexico have passed a similar measure and helped more than one million entrepreneurs and unlocked value amounting to $4 billion.

As an advocate of small business development, Sen. Bam passed several laws to support the sector, including the Go Negosyo Act, Youth Entrepreneurship Act, Philippine Competition Act, Foreign Ships Co-Loading, Microfinance NGOs Act and the Credit Surety Fund Cooperative Act.

Sen. Bam calls on rural banks to expand support to small businesses

Senator Bam Aquino urged rural banks to expand their services to more small businesses, saying many local entrepreneurs still need access to reasonable loan packages that can help them grow their business.
 
Sen. Bam issued this plea during his speech at 60th Charter Symposium of the Rural Bankers Association of the Philippines (RBAP) recently. 
 
“Nagpapasalamat ako sa RBAP sa inyong pagsisikap na maabot ang ating mga kababayang nangangailangan ng serbisyong pinansiyal. Marami pa po ang nangangailangan ng ating tulong,” said Sen. Bam.
 
During his time as a social entrepreneur, Sen. Bam learned that lack of financing poses a big challenge for micro, small and medium enterprises as it hampers their development.
 
“So when I became a senator, we focused on policies that can help support our MSMEs in the Philippines,” Sen. Bam pointed out.
 
One of them is finding ways to link MSMEs to financial institutions, including rural banks, to help their search for fresh capital to start or expand their businesses.
 
In his four years as senator, Sen. Bam worked for the passage of Republic Act 10644 or the Go Negosyo Act, the first of his 19 laws as legislator.
 
The law mandates the establishment of Negosyo Centers in every town, city, municipality, and province of the country to serve as support hubs for entrepreneurs.
 
As of now, there are over 600 Negosyo Centers across the country that link MSMEs to suppliers and markets, providing training and support and connect them to sources of capital and financing.
 
As its principal sponsor and co-author, Sen. Bam also pushed for the enactment of Republic Act 10679 or the Youth Entrepreneurship Act , which mandates the inclusion of financial literacy and entrepreneurial training will be included in basic education.
 
“This will help groom young Filipinos to be responsible with their money and savings,” said Sen. Bam.
 
Sen. Bam also passed other laws in support of MSMEs, such as the Philippine Competition Act, Foreign Ships Co-Loading, Microfinance NGOs Act and the Credit Surety Fund Cooperative Act.
 
In the 17th Congress, Sen. Bam has filed the Philippine Islamic Financing Act, National Payment Systems Act and the Secured Transactions Act, measures that will help enhance the credit-worthiness and bankability of Filipinos, particularly small business owners.
 

Approved loans for small businesses thanks to Credit Surety Fund Act — Sen. Bam

Small enterprises will now benefit from the Credit Surety Fund Cooperative Act of 2015 with the signing of its implementing rules and regulations (IRR), according to Sen. Bam Aquino.

 “Finally, small enterprises can access loans and financing with the full implementation of the Republic Act 10744,” said Sen. Bam.

 Sen. Bam was the author and principal sponsor of the measure in the Senate during his time as chairman of the Committee on Trade, Commerce and Entrepreneurship in the 16th Congress.

 The law institutionalizes the Bangko Sentral ng Pilipinas’ Credit Surety Fund (CSF) program, which provides small businesses loans ranging from P200,000 to P5 million.

 Sen, Bam pointed out that loan needs for small businesses usually range from P500,000 to P5 million, which is too big for microfinance institutions and perceived as too risky by banks, which usually ask for collateral.

 “Through this measure, we hope more small enterprises will have access to the capital they need to grow their business,” Sen. Bam said.

The law mandates the BSP, local government units, cooperatives, microfinance NGOs and government financing institutions (GFIs) to create an initial fund.

 This initial fund may be used by entrepreneurs and businessmen belonging to cooperatives and microfinance NGOs, which helped establish it, as collateral or guarantee for bank loans.

 Currently, the BSP’s CSFs exist in 46 provinces and cities with two more to be launched next week. As of April 30 2017, the total amount released through CSFs is P3.25 billion to 16,360 MSMEs.

 Republic Act 10744 aims to build the capability of MSMEs, cooperatives and non-government organizations in the areas of credit evaluation, loan and risk management, and good governance.

It also seeks to enhance the MSMEs’ credit worthiness and broaden access to credit facilities, and sustain the continuous flow of credit in the countryside.

“This will generate more employment and alleviate poverty through increased investments and economic activities,” Sen. Bam pointed out.

Bam: MFI NGOs provide lower-interest, no-collateral loans to poor, micro-businesses

Rather than be burdened by high-interest loans collected by loan sharks and other informal lenders, Sen. Bam Aquino encouraged the public to approach m​icrofinance non-government organizations (​MFI ​NGOs) for lower-interest and no-collateral financing.

“Madali nga ang proseso ng pangungutang sa 5-6 subalit pinapatay naman tayo sa laki ng interes sa kanilang mga pautang,” said Sen. Bam.

 “Upang hindi na tayo mabigatan sa malaking interes, subukan nating lumapit sa mga MFI NGOs sa iba’t ibang bahagi ng bansa na nagbibigay ng pautang sa mas mababang interes at walang kolateral,” added Sen. Bam.

Sen. Bam explained that some micro-business owners were forced to close shop due to the high interest being collected by loan sharks. But businesses flourished after obtaining loans and undergoing training from different MFI NGOs in the country.

 “Huwag sayangin ang kita sa malaking interes na sinisingil ng 5-6,” said Sen. Bam.

 Aside from low-interest loans, MFI NGOs also provide clients with trainings and other business development skills that they can use to grow their livelihood. MFI NGOs also help in community organizing and values formation and offer other services like insurance and education and health-related loans to their regular clients.

Before he was elected as senator, Sen. Bam worked with MFI NGOs as a social entrepreneur.

During his term as chairman of the Committee on Trade, Commerce and Entrepreneurship in the 16th Congress, Sen. Bam sponsored and co-authored Republic Act 10693 or the Microfinance NGOs Act to ensure MFI NGOs continue to operate and serve poor Filipino communities.

 Sen. Bam said the MFI NGOs Act will help eradicate 5-6 by giving Filipinos an alternative means to obtain low-interest, no-collateral loans.

Republic Act 10693 gives incentives to MFI NGOs to continue helping Filipinos overcome poverty not just through financing but also through financial literacy, livelihood, and entrepreneurship training.

The law also provides MFI NGOs needed support and incentives that includes access to government programs and projects, technical assistance and exemption from taxes.

 In addition to the MFI NGOs Act, Sen. Bam will be looking into other measures where government can further support the MFI sector.

 Microfinance NGOs have been operating in the country since 1986. According to latest data, MFI NGO members of the Microfinance Council of the Philippines, Inc. (MCPI) have five million active borrowers.

 For a full list of MFI NGOs in the country, please visit http://www. microfinancecouncil.org/ regular-members/.

Bam: Support Microfinance NGOs to end 5-6, loan sharks

Sen. Bam Aquino called on the government to strengthen microfinance institutions (MFIs) in the country to give millions of Filipinos a better alternative from loan sharks and other informal lenders that burden them with unreasonable and high interest rates.

“Dapat palakasin ng pamahalaan ang ating microfinance institutions upang tuluyan nang magwakas ang pagdepende ng mga Pilipino sa 5-6 na naniningil ng sobra at hindi makatwirang interes na lalo pang nagpapahirap sa kanila,” said Sen. Bam.

 “Sa tulong ng Microfinance NGOs, mayroon nang alternatibong malalapitan ang mahihirap at maliliit na negosyante para makakuha ng pautang sa mababang interes at walang collateral,” the senator said.

 Sen. Bam made the pronouncement after it was reported that around three million Filipinos, mostly small entrepreneurs, are indebted to loan sharks and informal lenders.

 Despite the high interest, many Filipinos are enticed to obtain financing from loan sharks because they are not required to submit documentary requirements and collateral, unlike in banks.

 “Hindi na tayo kailangang kumapit sa patalim at kumagat sa 5-6 dahil mayroon tayong microfinance NGOs na handang magbigay ng pautang sa mababang interes at walang collateral,” Sen. Bam said.

 Microfinance NGOs provide Filipinos access to low-interest, no collateral loans to pay for housing, medical, and educational needs as well as loans for small businesses.

 Sen. Bam was the principal sponsor and co-author of Republic Act 10693 or the Microfinance NGOs Act during his term as chairman of Committee on Trade, Commerce and Entrepreneurship in the 16th Congress.

 “Layunin ng batas na ito na mailayo ang mahihirap sa malaking interest na sinisingil ng loan sharks at masusuportahan ang pagnanais ng gobyerno na mabura ang talamak na 5-6,” he said.

The law gives incentives to microfinance NGOs to continue helping Filipinos overcome poverty not just through financing but also through financial literacy, livelihood, and entrepreneurship training.

The law also provides microfinance NGOs needed support and incentives that includes access to government programs and projects, technical assistance and exemption from taxes.

Bam: Boost MFI NGOs to beef up campaign vs loan sharks

While it aggressively pursues abusive loan sharks, the government must also strengthen the country’s microfinance institutions (MFI) to help address the financing needs of the poor, according to Sen. Bam Aquino.

“As author of the Microfinance NGOs Act, we are supportive of eradicating 5-6 in the Philippines,” said Sen. Bam, referring to Republic Act 10693, which he pushed as co-author and principal sponsor during his term as chairman of Committee on Trade, Commerce and Entrepreneurship in the 16th Congress.

 The senator pointed out there are better alternatives to 5-6, like MFIs NGOs that provide alternative low-interest, no-collateral financing to the poor and would-be entrepreneurs who need loan to start their own business.

 “There are better alternatives to 5-6, whether these are government programs, or led by the private sector. Mas magandang masuportahan ang mga grupo at programang ito na regulated ng goberyno na makapagbibigay rin ng pautang na hindi kasintaas ng mga 5-6 ang interes,” he added.

 Sen. Bam called on the BIR to finalize tax regulation for MFI-NGOs for the law to be fully implemented and fulfill its mandate to give the poor low-interest financing.

 Microfinance NGOs provide Filipinos access to low-interest, no collateral loans to pay for housing, medical, and educational needs as well as loans for small businesses.

 Republic Act 10693 gives incentives to microfinance NGOs to continue helping Filipinos overcome poverty not just through financing but also through financial literacy, livelihood, and entrepreneurship training.

The law also provides microfinance NGOs needed support and incentives that includes access to government programs and projects, technical assistance and exemption from taxes.

 “MFI NGOs aid our poor countrymen in times of inflation and price increases. They also provide financing and training for livelihood and small businesses so families can overcome poverty,” he said.

 In 2013, MFI NGO members of the Microfinance Council of the Philippines, Inc. (MCPI) had a gross loan portfolio of over 15.26 billion pesos catering to more than 2.7 million micro-entrepreneurs.

 At the same time, Sen. Bam called on concerned government agencies to expedite the release of the implementing rules and regulations for Republic Act 10744 or the Credit Surety Fund Act.

 Aquino, author and sponsor of the measure’s Senate version, said it will institutionalize the CSF program of the Bangko Sentral ng Pilipinas (BSP), which addresses loan requirements ranging from P200,000 to P5 million.

 

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