Magna Carta for Micro, Small and Medium Enterprises
(RA 6977, as amended by RA 8289, and further amended by RA 9501)

SEC. 19. New sections to be numbered as Sections 16, 17 and 18 are hereby inserted after Section 13 of the same Act, as amended, to read as follows:
“SEC. 16. Micro, Small, and Medium Enterprise Week. — In order to institute continuing awareness of the primacy of small business in nation-building and in people empowerment, and to celebrate and espouse the firm commitment of the State in the promotion, growth and development of small business, the second week of July of every year shall be declared as the “Micro, Small, and Medium Enterprise Development Week”. The MSMED Council, the Department of Trade and Industry, and the SB Corporation shall be jointly responsible in organizing activities for the event.”
Mayor declares 2nd week of July as MSME week in Davao City http://www.pia.gov.ph/news/index.php?article=1561341210151 (posted July 3, 2012)

Spearheaded by the Davao City MSME Development Council, several activities are lined up for the celebration slated from July 9 to 13.

1. MSME Week Exhibit at the Davao City Pasalubong Center and Abreeza Ayala Mall,
2. Seminars and trainings for MSMEs, financing forum and food safety seminar in public markets: * Solid Waste Management Seminar by the City Environment and National Resources Office; * Knowing Your Currency and Briefing on the Credit Surety Fund by the Bangko Sentral ng Pilipinas, * Techno-Demo on Scented and Decorative Candle Making by the Department of Science and Technology XI, * Financial Management Seminar by Department of Trade and Industry – Davao City Field Office; * Branding and IPO Seminar, How to Start a Business and Simple Bookkeeping Seminar; * and Anti-Corruption & Integrity Initiatives Seminar by the Davao City Chambers of commerce and Industry.

July celebrates MSMEs
(The Philippine Star) Updated July 03, 2012 12:00 AM | | http://www.philstar.com/Article.aspx?articleId=823403&publicationSubCategoryId=74 MANILA, Philippines - A food trade fair will showcase food products sourced from Filipino micro-, small and medium enterprises (MSMEs) from all over the country. Billed as “EATS more fun in the Philippines”, the trade fair will be held from July 12 to 15, at the Megatrade Halls 2 & 3 in SM Megamall, Mandaluyong City. The trade fair, with 190 producers and manufacturers, is part of the celebration of MSME Week under Republic Act (RA) 9501 or the Magna Carta for Micro, Small and Medium Enterprises.

‘SEC. 17. Presidential Awards for Outstanding MSME. — Presidential awards for outstanding MSMEs and good MSME practices, consisting of rewards in cash or in kind shall be granted to one hundred percent (100%) filipino-owned companies and development partners during the MSME development week.”

9 outstanding SMEs get presidential awards
July 27, 2009, 6:01pm http://mb.com.ph/articles/212996/9-outstanding-smes-get-presidential-awards Nine successful enterprises were honored with the first-ever Presidential Awards for Outstanding Micro, Small and Medium Enterprises (MSMEs).

1. The outstanding MSMEs from Luzon were Roger & Beth Pili Nut Candy (micro), J. Emmanuel Pastries (Small) and Lighthouse Cooperative (Medium). 2. For Visayas, the awardees were Dood’s Enterprises (Micro), Filbake Food Corporation (Small) and VICKMIK Enterprises (Medium). 3. The recipients for Mindanao are Lao Integrated Farm-Bansalan (Micro), Manolette Bakeshop-Panabo City (Small) and AMS Employees Fresh Fruits- Kapalong, DDN (Medium).

Best practices are initiatives that have made outstanding contributions to improving any of the four strategic areas which are fundamental in developing the MSME sector. These are: 1) creating a business and investment enabling environment; 2) providing access to finance; 3) improving access to markets and; 4) enhancing productivity and efficiencies of MSMEs.

The recipients of Presidential Citations for best practices in the area of creating a business and investment enabling environment were: German Technical Cooperation (GTZ); Municipal Governments of Baler, Aurora; Sta. Maria, Bulacan; Aliaga, Nueva Ecija; Talavera, Nueva Ecija; and Hermosa, Bataan; City Governments of Angeles, Pampanga; San Fernando, Pampanga; and Bayawan, Negros Oriental; Provincial Government of Camarines Sur; Chinese Filipino Business, Inc. and St. Mary's College Business Resource Center Tagum City, Davao del Norte.
Conferred for best practices in the area of improving access to finance were: Baao Multi-Purpose Cooperative; Cooperative Bank of Benguet; Simbag sa Pag-Asenso, Inc. (SEDP); MASICAP MSME Development Foundation, Inc.; CARD Bank, Inc.; Bank of Philippine Islands (Universal/Commercial Bank Category); Planters Development Bank (Thrift Bank Category); and Fair Bank (Rural Bank Category). (EHL)
DTI CITES 5 OUTSTANDING COOPERATIVES IN CELEBRATION OF 'SMALL AND MEDIUM ENTERPRISE WEEK', JULY 7-9, 2011 http://cooperatives-society.blogspot.com/2011/07/dept-of-trade-industry-cites-5.html (posted July 8, 2011)

* The SME Rising Star Award is given by DTI to enterprises in the start-up and capability-building stages and is awarded at the provincial level.

* The SME Elite Star Awards are given to enterprises at the domestic market penetration and export awareness staged and is given to enterprises at the regional level, according to the DTI.

“The SME STAR Program is an important component in micro, small and medium enterprise (MSME) development and promotion, as it recognizes outstanding entrepreneurs that have shown remarkable achievements in growing their business to become globally competitive enterprises, according to DTI Secretary Gregory L. Domingo.”

“SEC. 18. Congressional Oversight Committee. — To monitor and oversee the implementation of this Act, there shall be a Congressional Oversight Committee on Micro, Small and Medium Enterprise Development (COC-MSMED) composed of the chairpersons of the Senate Committee on Economic Affairs and the House Committee on Small Business and Entrepreneurship
Development as chairperson and co- chairperson, respectively; five (5) members of each of the Senate and House of Representatives to include the chairpersons of the Senate committees on Trade and Commerce; and Banks, Financial Institutions and Currencies; and the chairpersons of the House committees on Trade and Industry, Banks and Financial Intermediaries, and Appropriations: Provided, That two (2) of the five Senators and two (2) of the five House Members shall be nominated by the respective minority leaders of the Senate and the House of Representatives. “The COC-MSMED shall set the guidelines and overall framework for the monitoring of the implementation of this Act and shall adopt its internal rules of procedure. The Secretariat of the COCMSMED shall be drawn from the existing personnel of the Senate and House of Representatives committees comprising the COCMSMED.”

Chairperson of COCMSMED - Manny Villar

SEC. 20. Section 14 of the same Act, as amended, on Penal Clause is hereby renumbered as Section 19, and further amended, to read as follows: “xxx”
“Penalties on noncompliance shall be directed to the development of the MSME sector. Ninety percent (90%) of the penalties collected should go to the MSMED Council Fund, while the remaining ten percent (10%) should be given to the BSP to cover for administrative expenses.”

The Bangko Sentral ng Pilipinas shall impose administrative sanctions and other penalties on the lending institutions for non-compliance with provisions of this Act including a fine of not less than Five hundred thousand pesos (P500,000.00).

SEC. 21. A new section is hereby inserted after Section 14 of the same Act, to read as follows:
“SEC. 20. Implementing Rules and Regulations. — The Department of Trade and Industry, through the Bureau of Micro, Small and Medium Business Development and in consultation with other concerned government agencies, nongovernment organizations and private sector involved in the promotion of MSMEs, shall formulate the Implementing Rules and Regulations (IRR) necessary to implement the provisions of this Act within ninety (90) days from the approval of this Act. The IRR issued pursuant to this Section shall take effect thirty (30) days after publication in a national newspaper of general circulation.”

DTI Department Administrative Order (DAO) No. 9, Series of 2008: Rules and Regulations to Implement Republic Act No. 6977, as amended by Republic Act No. 8289, and further amended by Republic Act No. 9501

Rule 1:Preliminary Provisions on Title and Construction and Interpretation
Rule 2:Declaration of Policy and other General Policy Statements
Rule 3:Definition of MSMEs and Related Provisions Therein
Rule 4:Eligibility for Government Assistance
Rule 5:Guiding Principles
Rule 6:Micro, Small and Medium Enterprises Development Plan (MSMEDP)
Rule 7:Micro, Small and Medium Enterprise Development (MSMED) Council
Rule 8:Powers, Duties and Functions of the MSMEDC
Rule 9:MSMEDC Secretariat, Appropriations under the General Appropriations Act and MSMED Council Fund
Rule 10:Small Business Guarantee and Finance Corporation
Rule 11:Capitalization and Funding of the SB Corporation
Rule 12:BSP Supervision and Examination and Venture Capital and Micro Finance Trust Fund of the SB Corporation
Rule 13:Mandatory Allocation of Credit Resources to Micro,Small and Medium Enterprises
Rule 14:Micro, Small, and Medium Enterprise Week
Rule 15:Congressional Oversight Committee
Rule 16:Penalties
Rule 17:Provision of Amendments for IRR
Rule 18:Transitory Provisions SB Corporation
Rule 19:Final Provisions

Bangko Sentral ng Pilipinas Circular No. 625, Series of 2008: Revised Rules and Regulations Governing the Mandatory Allocation of Credit Resources to MSMEs
Section 1. Section X342 of the Manual of Regulations for Banks (MORB) and its Subsections are hereby amended to read as follows:
Section X342. Mandatory Allocation of Credit Resources to Micro, Small and Medium Enterprises.
Subsection X342.1. Definition of terms.
Subsection X342.2. Period covered; prescribed portions of loan portfolio to be allocated.
Subsection X342.3. Eligible credit exposures.
Subsection X342.4. Ineligible credit instruments.
Subsection X342.5. Rights/remedies available to lending institutions not qualified to acquire or hold lands of public domain.
Subsection X342.6. Submission of reports.
Subsection X342.7. Sanctions.
Subsection X342.8. Disposition of penalties collected.

Section 2. Subsection X365.5 on the incentives to participating financial institutions under R.A. No. 9178 is hereby amended to read, as follows:
“Subsection X365.5. Incentives to participating financial institutions.
Section 3. Repealing Clause.
Section 4. Effectivity.

SEC. 22. Separability Clause. — The provisions of the Act are hereby declared to be separable. If any provision of this Act shall be held unconstitutional, the remainder of the Act not otherwise affected shall remain in full force and effect.

SEC. 23. Repealing Clause. — All laws, executive orders, rules and regulations, or parts thereof, inconsistent herewith are hereby repealed or modified accordingly.

SEC. 24. Effectivity Clause. — This Act shall take effect within fifteen (15) days from its publication in at least two (2) national newspapers of general circulation.

SUMMARY:
MAGNA CARTA FOR SMEs has the following features: http://portal.sbgfc.org.ph/index.php?option=com_content&view=article&id=3:corporate-profile&catid=6:about-us&Itemid=5 1. Micro enterprises are now included in the expanded definition of MSMEs 2. The mandatory allocation of credit resources of MSMEs is increased from 8% to 10% and the period extended to another 10 years 3. The Micro, Small and Medium Enterprise Development (MSMED) Council is organized and strengthened. 4. Small Business Corporation is further strengthened as the government financing arm for SME’s. 5. A Congressional Oversight Committee of MSME Development is created to monitor and oversee the implementation of the Magna Carta for MSME’s.
Challenges that the industry faces: 1. Lack of Research and Development 2. Inadequate access to technology 3. Difficulty in acquiring capital 4. Lack of marketing advice and logistical problems
Aim of Entrepreneurship Development: 1. To improve a Filipino productivity 2. Generate income 3. Improve quality of Employment and Social life
RA 9501 is a great opportunity to maximize the social and economic benefits that the country would gain in the industry.
The ‘big push’ for MSME http://www.manilatimes.net/index.php/opinion/columnist1/27227-the-big-push-for-msme Published on 19 July 2012 Written by Thelma Dumpit-Murillo

The Department of Trade and Industry (DTI) focuses itself on MSMEs this month as a strategy to create sustainable employment in the countryside through development of these enterprises.
And why not. MSMEs constitute 99.6 percent of business establishments in the country. The DTI recorded 84,851 new micro, small and medium enterprises (MSMEs), which employed 762,840 Filipinos as a result of the government program on MSMEs implemented from July 2011 to June 2012.
These figures reflect the positive response to government efforts to develop Filipino enterprises and enable them to contribute considerably to employment generation and inclusive growth.
Likewise, the DTI report on MSME also cited existing MSMEs that have progressed. A total of 2,670 enterprises advanced from micro to small enterprises, 696 from small to medium, and 20 from medium to large.
These MSMEs also generated P24.67 billion in domestic sales and US$586.04 million in export sales. A total of 66,501 MSMEs expanded their operations, and investments of P43.51 billion were recorded.
Aside from the employment figures and MSME growth and development, some noteworthy accomplishments on the MSME development plan’s four major outcomes such as business environment, access to finance, access to markets, and productivity and efficiency were also reported in the same period. Given this, it really puzzles me why surveys reflect otherwise.
In developing and sustaining MSMEs though institutional support structures, 723 local government units (LGUs) streamlined their business registration processes, and 711 LGUs implemented the Barangay Micro Enterprises (BMBE) Act of 2002 to encourage micro enterprises at the barangay level.
Aside from these figures, 155 LGUs have set up SME Centers to serve as one-stop shops to provide information and consulting services for MSMEs, and 402 LGUs have Business One Stop Shop (BOSS) centers for fast and efficient issuance of business permits. A total of 1, 672 entrepreneurial capacity building programs and projects were also implemented in 15 regions of the country.