institutionalize P3 Program filed in Senate
September 27, 2018
MAKATI CITY –
Senator Aquilino “Koko” Pimentel III filed on September 19, 2018 a
Senate Bill that will institutionalize the Pondo sa Pagbabago at
Pag-asenso (P3) Program to further strengthen the landmark micro
loan program of President Rodrigo Duterte that will provide relief
to micro enterprises through alternative source of financing.
The Senate Bill No. 2017
or “An Act Providing a Socialized Microfinancing Program for Micro
Enterprises Thereby Promoting Entrepreneurship” aims to address
financing concerns of micro enterprises throughout the country and
help them sustain their businesses.
Trade Secretary Ramon M.
Lopez welcomed the news, saying it will further ensure funds are
made available for micro enterprises to veer them away from onerous
loans, particularly the “5-6” money-lending system.
“This is another milestone
as we continue our drive to empower our MSMEs and alleviate poverty.
Through this bill, we will be able to assist more entrepreneurs to
have easy access to P3 loans that come in one-form, one-day
processing, and don’t require any collateral, especially those in
the countryside,” said Sec. Lopez.
On the other hand, Small
Business Corporation (SB Corp) President and CEO Ma. Luna E.
Cacanando said the filing of the Senate Bill will strengthen the
Corporation’s mandate and will greatly contribute to the development
of micro enterprises, which comprises the bulk of the micro, small
and medium enterprise (MSME) sector.
Micro enterprises account
for 90% out of the 99.6% from the MSME sector.
As the financing arm of
the Department of Trade and Industry (DTI), SB Corp is tapped as the
lead implementing agency of the P3 Program and is tasked to handle
the fund delivery through direct lending to micro enterprises,
wholesale lending to conduits that on-lend to micro enterprises.
Likewise, the House of
Representatives in June 2018 also adopted a bill that will establish
P3 Program as an affordable and easy access alternative source of
financing for micro enterprises.
Under House Bill No. 7446
or the "Pondo sa Pagbabago at Pag-asenso" or "P3 Act," the House of
Representatives seeks the creation of the “Pondo sa Pagbabago and
Pag-asenso” or the P3 Fund, which will be made available for
beneficiaries such as market vendors, agri-businessmen and members
of cooperatives, industry associations, and cooperators.
As of September 9, 2018,
the P3 Program has assisted over 50,000 micro enterprises throughout
the country with a total of P1.5 billion of released loans.
Under the P3 Program, a
micro enterprise can borrow between P5,000 up to P200,000 depending
on its business need and repayment capacity with no collateral
requirement. Interest rate and service fees, all in, do not exceed
The P3 Program serves as
an alternative to the P30 billion “5-6” money lending industry that
charges 20% nominal interest rate to MSMEs.
“We thank Sen. Koko
Pimentel for sponsoring this bill in the Senate and being our
partner in strengthening the MSME sector,” said Sec. Lopez.