HB09533: AN ACT PROMOTING ENTREPRENEURSHIP BY ESTABLISHING A SOCIALIZED MICROFINANCING PROGRAM FOR MICRO ENTERPRISES THROUGH THE PONDO SA PAGBABAGO AT PAG-ASENSO PROGRAM, AND APPROPRIATING FUNDS THEREFOR
House Bill No. 9533, also known as the "Pondo sa Pagbabago at Pag-asenso (P3) Act," aims to promote entrepreneurship and reduce poverty in the Philippines by establishing a socialized microfinancing program. This program provides an affordable, accessible, and simple microfinancing alternative to informal lenders, specifically targeting micro enterprises, especially those in the poorest populations. The P3 Fund, managed by the Small Business Corporation (SB Corp.) of the Department of Trade and Industry (DTI), will offer loans with an interest rate not exceeding twelve percent (12%) per annum and will not require collateral from beneficiaries.
The significance of this bill lies in its potential to foster inclusive growth and local job creation by empowering micro enterprises. By making financing more accessible and affordable, the P3 Act directly addresses a major constraint faced by small businesses. This can lead to increased production, trade, and overall economic development at the grassroots level, ultimately improving the livelihood of many Filipinos. The policy oversight function of the MSMED Council and the yearly reporting to Congress ensure accountability and continuous monitoring of the fund's utilization and disbursements.