In line with President Duterte’s efforts to improve the lives of the most marginalized sectors of Filipinos, the Department of Finance, headed by Sec. Carlos G. Dominguez III, recently signed the Implementing Rules and Regulations (IRR) of a new law providing them access to microfinance services and operations.
With this, families once considered as “unbankable” loan clients can now tap government funding to open up small businesses.
Under Republic Act No. 10693, aspiring small entrepreneurs who do not have access to financial products and services can team up with accredited microfinance nongovernment organizations (NGOs) that will provide them with convenient, flexible and low-interest credit.
Signing the IRR with Secretary Dominguez were Sec. Ramon Lopez of the Department of Trade and Industry (DTI) ), and Undersecretary Mae Fe Templa of the Department of Social Welfare and Development (DSWD). Chairperson Teresita Herbosa of the Securities and Exchange Commission (SEC) was also a signatory to the IRR.
Also attending the event was Rep. Pablo Nava III of the APPEND partylist group, who was instrumental in authoring the law in the House of Representatives.
One key feature of RA 10693’s IRR is the set of guidelines on the creation of a Microfinance NGO Regulatory Council, which is tasked to accredit NGOs that provide financial products and services to small entrepreneurs.
Under RA 10693, an accredited microfinance NGO is eligible for preferential tax treatment of 2% tax—in lieu of national taxes—based on their respective gross receipts from microfinance operations.
This new law is attuned to President Rodrigo Duterte’s 10-point socioeconomic agenda designed to sustain the economy’s high growth path and make its benefits felt by all Filipinos.
Continue reading at http://mindanation.com/3171/new-law-gives-microfinancing-small-entrepreneurs/