on boosting growth of microentrepreneurs
Bicol Saro Partylist Representative Brian Raymund Yamsuan has urged the Senate to act swiftly on a House-approved measure that aims to encourage the growth of microentrepreneurs by providing them easy-to-access capital through low-interest, no-collateral loans.
Yamsuan said this measure, which aims to institutionalize the government’s Pondo Para sa Pagbabago at Pag-Asenso (P3) Program, would also free micro entrepreneurs, like market vendors and sari-sari store owners, from the clutches of predatory “five-six” moneylenders.
“Mga maliliit na negosyong may sapat na kita at may oportunidad na lumago (Small businesses with enough profits and opportunities to expand). This is what we envision in pushing for the swift passage of the bill institutionalizing the government’s Pondo sa Pagbabago at Pag-asenso or P3 Program,” said Yamsuan, who recently filed his candidacy to run as representative of Parañaque’s 2nd District in the 2025 midterm elections.
Besides providing low-interest, no-collateral loans, the P3 Program also aims to shield micro entrepreneurs from the usurious lending practices of “five-six” moneylenders, Yamsuan said.
Five-six moneylenders are so called because they require borrowers to pay 6 pesos for every 5 pesos they lend out. This means a high nominal interest rate of 20 percent that they charge over an agreed period of time, which drives borrowers deeper in debt.
Yamsuan said institutionalizing the P3, which would ensure that this micro financing program would remain sustainable over the long term, is aligned with his H.O.P.E. platform for Parañaque City’s 2nd District.
His H.O.P.E. agenda stands for Health, Opportunities, Peace and Education, which aims to ensure that residents of Parañaque’s ’ 2nd district are 1) provided quality and affordable Health and medical care; 2) equipped with adequate job and livelihood Opportunities to elevate their living standards; 3) assured of Peace and safety in their communities; and 4) guaranteed access to quality Education.
Yamsuan is among the principal authors of House Bill (HB) 7363 or the proposed P3 Act, which was already approved by the House of Representatives on third and final reading last year.
Several counterpart versions of the P3 Act in the Senate have yet to reach plenary approval.
“We call on the Senate to pass this measure that will benefit micro businesses and small enterprises. Hindi lamang mga Parañaqueño at mga Bicolano ang mabebenepisyuhan ng panukalang batas na ito kundi maging ang mga kasalukuyan at mga aspiring micro and small entrepreneurs sa iba’t ibang panig ng ating bansa (The bill will benefit not only Parañaquenos and Bicolanos but also other micro and small entrepreneurs as well as aspiring ones in different areas of our country),” Yamsuan said.
“Kapag may oportunidad na lumaki ang kita, may oportunidad din na lumago pa ang maliit na negosyo at kumuha ng dagdag na mga empleyado, kaya’t dadami ang mabibigyan ng trabaho sa ilalim ng P3 Program. (When there is an opportunity to increase profit, there is also an opportunity to expand one’s business and hire more employees, which in turn, means many people would be able to get jobs). The long-term gains under the P3 will make the program a prime driver of our economic growth,” he added.
Yamsuan said HB 7363 aims to create the Pondo sa Pagbabago at Pag-Asenso Fund to ensure the program’s sustainability.
The effective interest rate imposed on P3 loans as proposed under the bill shall not exceed 1 percent per month for direct lending, and 2.5 percent per month if borrowed from accredited PFIs.
To make P3 easily accessible to micro and small enterprises (MSEs), the bill authorizes the SBC to accredit Partner Financial Institutions (PFIs) to extend loans under the program. These include rural banks, thrift banks, development banks, cooperative banks, cooperatives, non-stock savings and loan associations, microfinance institutions and other qualified lenders.
Yamsuan said the bill would benefit more than 90 percent of businesses classified as MSEs.
The current P3 program being implemented by the Department of Trade and Industry (DTI) through its lending arm, the Small Business Corporation (SBC), extends loans of between P5,000 and P200,000 to micro entrepreneurs.
Its targeted borrowers are small sari-sari store owners, carinderia operators, market vendors and other small community-based entrepreneurs.
From July 2022 to May 2024, the Program has benefited 154,423 micro entrepreneurs.
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