MSME

Sen. Bam to DTI: Help micro-businesses affected by water shortage

Re-electionist Sen. Bam Aquino called on concerned government agencies, led by the Department of Trade and Industry (DTI), to extend assistance to micro-businesses affected by the water shortage.

“Kadugtong ng krisis sa tubig ang kabuhayan ng mga kakababayan natin. Bawas kita ang dulot nitong krisis sa tubig sa mga kababayan natin lalo na mahihirap,” said Sen. Bam, who is running under the Otso Diretso slate.

In Metro Manila, Sen. Bam said there are around 150,000 registered micro-businesses, aside from those belonging to the so-called informal economy, that need immediate help due to the water shortage.

“Kailangan ng kagyat na solusyon para hindi mawalan ng kabuhayan ang maraming kababayan natin,” added Sen. Bam, chairman of the Committee on Trade and Entrepreneurship in the 16th Congress.

Sen. Bam said the DTI and the Department of Social Welfare and Development (DSWD) to tap Negosyo Centers and microfinance institutions in Metro Manila to give micro-businesses access to micro-loans and micro-insurance to help them weather the effect of the water shortage.

During his tenure as chairman of the Committee on Trade, Sen. Bam pushed for the passage of several laws aiming to help micro, small and medium enterprises (MSMEs), including the Go Negosyo Act and the Microfinance NGO Act.

Meanwhile, Sen. Bam stressed that those responsible for the water shortage must be punished as he called on concerned stakeholders to work together to bring immediate relief to consumers.

“Mahalagang panagutin ang mga responsable sa krisis na ito pero mas kailangan magtulungan muna para mabigyan ng agarang ginhawa ang taumbayan,” said Sen. Bam.

Sen. Bam pointed out that short- and long-term solutions are needed to avoid a repeat of the water shortage problem, including the creation of a water agency and the appointment of a water czar who will focus on water resource management.

Also, the Metro Manila Waterworks and Sewerage System (MWSS) must continue its cooperation with Manila Water and Maynilad to speed up water sharing through cross-border sharing.

Sen. Bam added that plans for the activation of alternative water sources should be crafted immediately to enable affected household and local government agencies to prepare.

“Kailangan malinaw ang agaran at pangmatagalang plano upang hindi na maulit ang ganitong krisis, sa Metro Manila man o sa ibang bahagi ng bansa,” said Sen. Bam.

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.

Sen. Bam: 900 Negosyo Centers now open to support small Filipino businesses

Residents of Carmen, Agusan del Norte can now visit their community’s Negosyo Center for help and support in starting a business or growing their family’s livelihood with the opening of the 900th Negosyo Center in the Philippines. 
 
“900 na ang mga Negosyo Centers na handang tumulong sa mga kababayan nating nais magnegosyo at magkaroon ng kabuhayan. Lahat po ay welcome kaya bumisita na kayo,” said Sen. Bam, principal sponsor and author of Republic Act No. 10644 or the Go Negosyo Act. 
 
Located at the municipal grounds, the newest Negosyo Center was inaugurated by Carmen mayor Ramon Calo. He was joined by other local officials, Department of Trade and Industry Undersecretary Zenaida Maglaya and other concerned stakeholders. 
 
Sen. Bam’s first enacted law in 2014, the Go Negosyo Act mandates the establishment of Negosyo Centers in all municipalities, cities and provinces that will assist micro, small and medium enterprises in the country. 
 
Negosyo Centers provide access to markets and financing for businesses, training programs, and a simplified business registration process, thus helping ease of doing business and fast-track government processes in putting up a business. 
 
According to Sen. Bam, Negosyo Centers provide a key role in fulfilling the dreams of many Filipinos who want to establish their own business as means of livelihood. 
 
“Malaking bagay ang ating Negosyo Centers para mabigyan ng karampatang tulong ang ating mga kababayan na nais magnegosyo,” said Sen. Bam. 
 
“Maliban pa rito, makatutulong din ang Negosyo Center para mabigyan ng suporta ang mga kababayan nating nais kumita ng extra, lalo ngayong mataas ang presyo ng bilihin,” added Sen. Bam, a long-time advocate of micro, small and medium enterprise (MSME) development.

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 to BIR: Ensure zero harassment of small businesses in intensified inspections

While he welcomes the Bureau of Internal Revenue’s move to intensify inspection of businesses, Sen. Bam Aquino said the agency must ensure that this action will not be a tool for harassment and corruption.

“We laud the BIR’s effort to go after tax evaders, but the agency should also guarantee that they will target large businesses and not harass our micro, small and medium enterprises (MSMEs). Walang kalaban-laban ang mga maliliit na negosyo kung sila ay gipitin,” said Sen. Bam.

“Lalo na ngayong tumataas ang presyo ng bilihin, inaasahan ng mga pamilya ang kanilang maliit na negosyo, tulad ng sari-sari store at carenderia. Tiyakin dapat ng BIR na hindi papahirapan ng mga inspectors ang mga kababayan nating nasa laylayan,” added Sen. Bam.

Earlier, Sen. Bam pushed for the exemption of micro enterprises earning less than P250,000 annually from paying the required percentage taxes, on top of their income tax exemption, under the Tax Reform Acceleration and Inclusion Act (TRAIN) Act.

“Malaki ang naitutulong ng mga maliliit na negosyo at sideline sa mga mahihirap nating pamilya at komunidad. Dapat lang na suportahan sila ng gobyerno,” said Sen. Bam.

Sen. Bam is a former social entrepreneur and long-time advocate for MSME development.

His first law, Republic Act 10644 or the Go Negosyo Act, has established more than 800 Negosyo Centers around the Philippines to help Filipinos put up and manage successful businesses.

Sen. Bam also filed Senate Bill No. 169 or the Small Business Tax Reform Act, which seeks to provide small businesses with a lower income tax rate, VAT exemption and simplified filing of taxes.

Under the measure, all small businesses shall be exempt from payment of income tax for the first three years of its operation from date of establishment and will be subjected to lower income tax rates thereafter.

“This bill also proposes the lowering of the income tax rate for MSEs and an exemption from VAT, among other methods to help our small businesses grow,” said Sen. Bam.

Sen. Bam enlists help of Negosyo Centers to support vendors, freelancers during Boracay closure

Senator Bam Aquino said concerned government agencies should also help small businesses in Boracay as they are also will be affected by the administration’s six-month closure order on the island.

“Huwag nating kalimutan ang mga maliliit na negosyante, mga vendor at sumiside-line na tatamaan din sa pagsasara ng Boracay. Tumataas na nga ang presyo ng bilihin, mawawalan pa sila ng kita at kabuhayan,” said Sen. Bam. 

“Kailangan ng malinaw na plano at programa para sa mga maliliit na negosyo, tulad ng mga nagbebenta ng chori burger at naghehenna. Siguraduhin dapat ng gobyerno na may sapat na kita at kabuhayan pa rin ang ating mga kababayan sa Boracay ,” added Sen. Bam. 

Sen. Bam said Negosyo Centers in Aklan and other nearby areas play an important role in keeping micro and small enterprises in the area afloat by connecting them to other markets and provide them with alternative livelihood. 

“Maaaring iugnay ng Negosyo Centers ang mga maliliit na negosyante sa iba’t ibang merkado habang naghihintay na bumalik sa normal ang operasyon ng Boracay,” said Sen. Bam, principal sponsor and author of Republic Act No. 10644 or the Go Negosyo Act.

The law was the first of 19 laws passed by Sen. Bam. 

Passed during Sen. Bam’s term as chairman of the Committee on Trade, Commerce and Entrepreneurship in the 16th Congress, the Go Negosyo Act mandates the establishment of Negosyo Centers in all municipalities, cities and provinces that will assist micro, small and medium enterprises in the country. 

Negosyo Centers provide access to markets and financing for businesses, training programs, and a simplified business registration process, thus helping ease of doing business and fast-track government processes in putting up a business.

As of latest tally, there are more than 800 Negosyo Centers in different parts of the country, including around 10 in Aklan, ready to cater to the needs of micro, small and medium enterprises (MSMEs).

Sen. Bam: No more taxes for micro businesses

Micro enterprises earning less than P250,000 annually will no longer be required to pay percentage taxes thanks to the amendment pushed by Sen. Bam Aquino on the proposed tax reform program.

 During the period of amendments on the Tax Reform Acceleration and Inclusion Act (TRAIN), Sen. Bam pushed for an amendment that exempts micro enterprises earning below P250,000 from paying percentage tax, on top of their income tax exemption.

“Exempted na sa percentage tax ang mga fishball vendors, sari-sari store owners, pati ang mga magsasaka at mangingisda na kumikita ng 250,000 pesos or less sa isang taon,” said Sen. Bam Aquino, a former social entrepreneur and principal sponsor of the Go Negosyo Act.

“We moved for this amendment because we have received many reports that some micro businesses are being required to pay the 3% percentage tax,” Sen. Bam added.

 Sen. Bam said the amendment will ensure a tax-free status for our micro entrepreneurs and free them from harassment by tax agents, at no additional cost to the government. The senator also proposed to simplify bookkeeping records and requirements for micro businesses.

 Sen. Bam is thankful to Sen. Sonny Angara, chairman of the Committee on Ways and Means, for accepting both these amendments in support of the micro enterprise sector.

 “Protektahan natin ang kita ng mga maliliit na negosyo at kabuhayan ng maraming pamilyang Pilipino,” said Sen. Bam, adding that this will help one million Filipinos or more.

 The Senate will continue to deliberate on the amendments to the TRAIN on Monday. “We will ensure that this amendment will make it to the end,” said Sen. Bam.

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.

Sen. Bam: Youth Entrepreneurship Act implementation long overdue

A legislator called on the Department of Education (DepEd) to implement the law encouraging students and graduates to venture into business.
 
“Nananawagan tayo sa Department of Education na ilabas na ang Implementing Rules and Regulations para sa Youth Entrepreneurship Act upang mapakinabangan na ng ating mga kabataan,” said Sen. Bam Aquino.
 
The Youth Entrepreneurship Act or Republic Act No. 10679 was passed August 2015 but no IRR has been released. The law mandates that the IRR be promulgated within one hundred twenty (120) days from its effectivity.
 
The law encourages young would-be entrepreneurs to establish their own business by providing them access to capital and other support.
 
It also creates financial literacy modules in all levels of Philippine education, to inculcate a culture of enterprise development among the Filipino youth.
 
“Gusto nating makakita ng trabaho ang ating mga graduates ngunit mayroon din silang opsiyon na pumasok at magtagumpay sa pagnenegosyo. Matutulungan sana ang ating kabataang magtagumpay sa negosyo kung ma-implement ng maayos ang iilang mga batas na ating isinulong noong 16th Congress,” said Sen. Bam.
 
Sen. Bam was the author and principal sponsor of the Go Negosyo Act (Republic Act 10667), his first law in the 16th Congress, and the co-author and principal sponsor of the Youth Entrepreneurship Act.
 
The senator pursued the passage of these two laws during his time as chairman of the Senate Committee on Trade, Commerce and Entrepreneurship in the 16th Congress to cater to the needs of micro, small and medium enterprises (MSMEs).
 
“These two laws provide MSMEs a conducive environment they need to succeed. At the same time, they also help provide fresh jobs and other livelihood opportunities for their fellow Filipinos,” stressed Sen. Bam, adding that MSMEs account for 66 percent of jobs in the country.
 
At present, Sen. Bam said 470 Negosyo Centers are already up and running in different parts of the country, catering to the needs of MSMEs.
 
In the 17th Congress, Sen. Bam filed Senate Bill No. 169 or Small Business Tax Reform Act, which provides small businesses with lower income tax rate, VAT exemption and other privileges.
 
Sen. Bam has also submitted Senate Bill No. 175 or the Innovative Startup Act seeking to ease restrictions and provide incentives for startups in the Philippines.

Bam lauds public, private sector for success of Negosyo Centers

Senator Bam Aquino credited the success of Negosyo Centers to the continued cooperation between the legislative and executive branches of government as well as the private sector.

 “Maayos po iyong batas, nakapondo po ito. Ngayon po ipinasa na sa executive. In fairness to our DTI family, buong-buo ang kanilang pagtanggap sa Negosyo Center. They’ve made the Negosyo Center one of their priorities,” said Sen. Bam during the launching of the 400th Negosyo Center in Marikina City.

 Sen. Bam is the principal author and sponsor of the Republic Act No. 10644 or the Go Negosyo Act in the Senate.

Through the Negosyo Center, Sen. Bam said the Department of Trade and Industry (DTI) now has a frontline service organization that will cater to the needs of micro, small and medium entrepreneurs.

“May 400 na sentro na pong pupuntahan ang ating mga maliliit na negosyante para makahingi ng tulong, kahit saan pa sila bansa,” Sen. Bam pointed out. 

Sen. Bam also lauded the private sector and non-government organizations for its participation in the success of the Negosyo Centers.

“In many areas, the Negosyo Center has become a focal point for support, even NGOs, microfinance groups, basta may kinalaman sa pagtulong sa maliliit na negosyante, ito na ang kanilang bahay,” the senator pointed out.

 The Go Negosyo Act, the first law passed by Sen. Bam in the 16th Congress, mandates the establishment of Negosyo Centers in all municipalities, cities and provinces that will assist micro, small and medium enterprises in the country.

 The Negosyo Center will provide access to bigger markets and financing for businesses, training programs, and a simplified business registration process, thus helping ease of doing business and fast-track government processes in putting up a business.

Sen. Bam continues to work closely with the DTI to ensure the effective implementation of the law.

According to the DTI, the number of Negosyo Centers will increase to 420 by the end of 2016.

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