EXECUTIVE ORDER NO. 176
EXECUTIVE ORDER NO. 176 -
INSTITUTIONALIZING THE “ISANG BAYAN, ISANG PRODUKTO, ISANG MILYONG
PISO” PROGRAM TO STIMULATE LOCAL ECONOMIC ACTIVITY
WHEREAS,
a need exists for a stable alternative strategy to stimulate local
economic activity and growth, given the vulnerability of foreign
markets to fluctuations in major economies of the world;
WHEREAS, supporting countrywide growth of our local small and medium
enterprises would be an ideal and stable program to stimulate local
economic activity and sustain the anti-poverty thrust of the government;
NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic
of the Philippines, upon consultation with the Secretary of Trade and
Industry and by virtue of the powers vested in me by law, do hereby
order:
Section 1. Institutionalization and Objectives of the
Program. — There is hereby institutionalized the “Isang Bayan, Isang
Produkto, Isang Milyong Piso” Program, hereinafter referred to as the
Program, with the objectives of stimulating local economic activity and
small and medium enterprise (SME) growth, generating jobs, developing
the countryside, and sustaining the anti-poverty thrust of government
through countrywide lending to SMEs.
For purposes of this Executive Order and as provided under the Magna
Carta for Small Enterprises (Republic Act No. 6977, as amended by
Republic Act No. 8289), as amended by the Small and Medium Enterprise
Development Council (SMEDC) through SMEDC Resolution No. 1, Series of
2003, in accordance with law, SME shall refer to any business activity
or enterprise engaged in industry, agribusiness and/or services,
whether single proprietorship, cooperative, partnership or corporation
whose total assets, inclusive of those arising from loans but exclusive
of the land on which the particular business entity’s office, plant and
equipment are situated, have a value falling under the following
categories:
micro
: not more than P3,000,000
small :
P3,000,001 P15,000,000
medium :
P15,000,001 P100,000,000
Sec. 2. Program Features. — The Program is
designed such that the Government will allocate for lending to an SME,
through identified Funding Sources, One Million Pesos (P1 Million) for
every city or municipality in the country.
For every city or municipality in the country, a product or service
cluster will be identified for funding support, such that an SME
offering such product or service in the said city or municipality shall
be eligible to apply for a loan with a Funding Source.
A Funding Source shall grant loans to eligible SMEs which have complied
with loan requirements at a maximum effective interest rate of ten
percent (10%) per annum. If necessary and in accordance with applicable
laws, a Funding Source may also require collateral or guarantees from
the SME-borrower.
Sec. 3. Program Beneficiaries. — The beneficiaries
of the Program shall be eligible SMEs which provide a product or
service that has been identified for funding support in the city or
municipality.
Sec. 4. Funding Sources. — Funding Sources for
loans under the Program shall be as follows:
a.
The Effective Response to Alleviate Poverty Trust Fund, which is under
the supervision of the Land Bank of the Philippines (LBP), is hereby
renamed as the National Livelihood Support Fund (NLSF). The LBP shall
allocate a maximum of Nine Hundred Million Pesos (P900 Million) out of
the capital fund of the NLSF for the Program.
The LBP is further directed to
restructure the NLSF, its funds, personnel and programs, as the LBP may
deem fit to better serve said mandate, in accordance with applicable
laws, rules and regulations.
b. Other
Funding Sources shall include:
i.
LBP, Six Hundred Million Pesos (P600 Million);
ii.
Development Bank of the Philippines, Five Hundred Million Pesos (P500
Million);
iii.
Technology and Livelihood Resource Center (TLRC), Seventy Million Pesos
(P70 Million); and
iv. Small
Business Guarantee and Finance Corporation, Fifty Million Pesos (P50
Million).
c. Funding
Sources may likewise include other government instrumentalities and
agencies, government financial institutions and government-owned or
controlled corporations whose respective mandates are consistent with
the objectives of the Program.
d. Previous
loans which have been bridge-financed under the Program by other
Funding Sources prior to the issuance of this Executive Order shall be
taken out by government financial institutions and government-owned or
controlled corporations, upon compliance with their respective loan
requirements.
Sec. 5. Policy-Making. — Policies of the Program
shall be made under the direction, supervision and control of the
Office of the President, as assisted by the Secretary, of Trade and
Industry.
Sec. 6. Lead Agency. — The Department of Trade and
Industry (DTI) shall be the lead agency of the Program. As the lead
agency of the Program, the DTI, through its regional and/or provincial
offices, shall undertake the following:
i.
Coordinate with local government units, Funding Sources and eligible
SMEs to accomplish the objectives of the Program;
ii. After a
review of the economic factors in each city or municipality and in
coordination with local government units, identify a product or service
for each city or municipality that an SME must provide to be eligible
to avail of the loans under the Program;
iii.
Coordinate with and assist the local government of the city or
municipality, as the case may be, in screening and identifying eligible
SMEs, in accordance with Program guidelines;
iv. In
cooperation with the Department of Agrarian Reform, the Department of
Agriculture, and the TLRC, provide technical assistance to eligible
SMEs in relation to project proposals and documentation required for
application and availment of loans under the Program;
v. Monitor
performance of SMEs who availed of loans under the Program; and
vi. Submit an
annual review and report on the progress and development of the Program
to the President of the Philippines within thirty (30) days from the
end of each calendar year.
Sec. 7. Technological Support. — The Department of
Science and Technology, assisted by the Technical Education and Skills
Development Authority, the TLRC, and the DTI, shall provide
technological support, as may be needed.
Sec. 8. Implementing Guidelines, Rules and
Regulations. — Within thirty (30) days from the effectivity of this
Executive Order, the DTI shall issue the appropriate guidelines, rules
and regulations to implement the provisions of this Executive Order,
subject to the approval of the President of the Philippines.
Sec. 9. Amendment and Repeal. — Executive Order
No. 138 dated August 10, 1999, insofar as it is inconsistent with this
Executive Order, is hereby amended accordingly.
All other executive orders, rules and regulations, and issuances, or
portions thereof, inconsistent with this Executive Order are hereby
repealed or amended accordingly.
Sec. 10. Effectivity. — This Executive Order shall
take effect fifteen (15) days after publication in a newspaper of
general circulation.
DONE in the City of Manila,
this 11th day of February, in the year of our Lord, Two Thousand and
Three.
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Since 19.07.98.