MAGNA CARTA FOR MICRO, SMALL AND MEDIUM ENTERPRISES
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MAGNA CARTA FOR MICRO, SMALL AND MEDIUM ENTERPRISES
Republic Act No. 9501
May 23, 2008
Case Overview and Summary
Title: Magna Carta for Micro, Small and Medium Enterprises (MSMEs)Definition of MSMEs (Section 3):
- Micro: Total assets not more than P3,000,000
- Small: Total assets from P3,000,001 to P15,000,000
- Medium: Total assets from P15,000,001 to P100,000,000
Eligibility for Government Assistance (Section 4):
- Duly registered business
- 100% owned by Filipino citizens (60% for corporations)
- Engaged in industry, trade, services, or agri-business
- Not a branch or subsidiary of a large enterprise
Guiding Principles (Section 5):
- Coordination of government efforts across various agencies
- Formulation of a 6-year MSME Development Plan (MSMEDP)
MSME Development (MSMED) Council (Sections 6-9):
- Headed by the Secretary of Trade and Industry
- Composed of government and private sector representatives
- Tasked with policy formulation, program coordination, and MSME development
- Funded by an annual appropriation and private sector contributions
Rationalization of MSME Programs and Agencies (Section 10):
- The MSMED Council shall review and recommend changes to MSME programs
Small Business Guarantee and Finance Corporation (SB Corporation) (Sections 11-14):
- Charged with implementing MSME policies and programs
- Capitalized by government financial institutions and private sector
- Authorized to extend financial assistance, guarantee loans, and engage in venture capital and microfinance
- Subject to BSP supervision and examination
Mandatory Credit Allocation for MSMEs (Section 15):
- Lending institutions must set aside 8% of their loan portfolio for MSMEs for 10 years
- Compliance through actual lending, equity investment, or purchase of SB Corporation instruments
MSME Week and Presidential Awards (Sections 16-17):
- Second week of July declared as "MSME Development Week"
- Presidential awards for outstanding MSMEs and good practices
Congressional Oversight Committee (Section 18):
- Composed of Senate and House committee chairpersons and members
- Tasked with monitoring and overseeing the implementation of the Act
Penalties and Implementing Rules (Sections 19-20):
- Penalties for non-compliance shall be directed to MSME development
- DTI to issue implementing rules and regulations within 90 days
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micro enterprises
small enterprises
medium enterprises
MSME development
entrepreneurship
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Small Business Corporation
venture capital
microfinance
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congressional oversight
Law
MAGNA CARTA FOR MICRO, SMALL AND MEDIUM ENTERPRISES
Republic Act No. 9501
•May 23, 2008
Republic of the Philippines
Congress of the Philippines
Metro Manila
Fourteenth Congress
First Regular Session
Begun and held in Metro Manila, on Monday, the twenty-third day of July, two thousand seven.
Republic Act No. 9501 May 23, 2008
AN ACT TO PROMOTE ENTREPRENEURSHIP BY STRENGTHENING DEVELOPMENT AND ASSISTANCE PROGRAMS TO MICRO, SMALL AND MEDIUM SCALE ENTERPRISES, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 6977, AS AMENDED, OTHERWISE KNOWN AS THE "MAGNA CARTA FOR SMALL ENTERPRISES" AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled::
SECTION 1. Section 1 of Republic Act No. 6977, as amended, is hereby further amended to read as follows:
"SECTION 1. Title. - This Act shall be known as the "Magna Carta for Micro, Small and Medium Enterprises (MSMEs)".
SEC. 2. Section 2 of the same Act is hereby amended to read as follows:
"SEC. 2. Declaration of Policy. - Recognizing that MSMEs have the potential for more employment generation and economic growth...
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Amends
n/a
Amended by
n/a
Tags
Statutes
Republic Acts
micro enterprises
small enterprises
medium enterprises
MSME development
entrepreneurship
business loans
credit allocation
government assistance
MSME Council
Small Business Corporation
venture capital
microfinance
MSME awards
congressional oversight
Republic of the Philippines
Congress of the Philippines
Metro Manila
Fourteenth Congress
First Regular Session
Begun and held in Metro Manila, on Monday, the twenty-third day of July, two thousand seven.
Republic Act No. 9501 May 23, 2008
AN ACT TO PROMOTE ENTREPRENEURSHIP BY STRENGTHENING DEVELOPMENT AND ASSISTANCE PROGRAMS TO MICRO, SMALL AND MEDIUM SCALE ENTERPRISES, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 6977, AS AMENDED, OTHERWISE KNOWN AS THE "MAGNA CARTA FOR SMALL ENTERPRISES" AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled::
SECTION 1. Section 1 of Republic Act No. 6977, as amended, is hereby further amended to read as follows:
"SECTION 1. Title. - This Act shall be known as the "Magna Carta for Micro, Small and Medium Enterprises (MSMEs)".
SEC. 2. Section 2 of the same Act is hereby amended to read as follows:
"SEC. 2. Declaration of Policy. - Recognizing that MSMEs have the potential for more employment generation and economic growth...
Login to see full content