HB01070: AN ACT FURTHER PROMOTING ENTREPRENEURSHIP BY STRENGTHENING, EMPOWERING AND ENHANCING THE FINANCING PROGRAMS FOR MICRO, SMALL AND MEDIUM ENTERPRISES, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 6977, AS AMENDED, OTHERWISE KNOWN AS THE "MAGNA CARTA FOR MICRO,
This bill aims to significantly bolster the Philippine economy by strengthening the support systems for Micro, Small, and Medium Enterprises (MSMEs), which constitute nearly 100% of the country's establishments and employ over 63% of its labor force. It seeks to extend the mandatory credit allocation for MSMEs by lending institutions for another ten years, ensuring continued access to vital financing. Furthermore, the bill mandates the full capitalization of the Small Business Corporation (SB Corp.) within five years, enabling it to better serve as the financing arm for MSMEs and establish a guarantee system for distressed enterprises. The bill also introduces an increase in penalties for banks that fail to comply with mandatory lending, with 90% of these penalties directed back into MSME development.
The impact of HB 1070 on the Filipino people is far-reaching. By guaranteeing and enhancing access to finance for MSMEs, the bill directly supports job creation, stimulates economic growth, and fosters a more robust entrepreneurial environment. It helps ensure that small businesses, often the backbone of local communities, have the resources to thrive, innovate, and contribute more significantly to the national GDP. The provisions for a Venture Capital and Micro Finance Trust Fund and support for MSME value chain actors further aim to uplift emerging businesses and integrate them into formal economic systems, ultimately leading to improved livelihoods and reduced poverty across the country.