Press Release
May 31, 2008

ROXAS CALLS FOR IMMEDIATE IMPLEMENTATION OF RA 9501 SMALL ENTERPRISES KEY TO LASTING GROWTH

Senator Mar Roxas today called for the immediate implementation of the Magna Carta for Micro, Small and Medium Enterprises (MSMEs), or Republic Act No. 9501, to expand small entrepreneurs' access to financial resources and grow their businesses to full potential.

"More than 90% of businesses are MSMEs, and they employ 70% of the workforce. On the other hand, due to limited financial resources, their contribution to national productivity is limited to 30%," he said.

Under the said law, banks and other lending institutions will be mandated to allot a minimum 8% of their loan portfolio for micro and small businesses. At present, the minimum allotment is only 6%.

It also redefines micro, small and medium businesses: micro enterprises are those with total assets not exceeding P3 million, small enterprises are those with assets not exceeding P15 million, and medium enterprises are those with assets not exceeding P100 million.

The law also increases the Small Business Corp.'s authorized capital stock to P10 billion for the implementation of policies and programs to aid MSMEs.

"The law seeks to develop MSMEs, to increase their capability to provide employment and to increase their contribution to the economy. But all of these will only be realized if the implementation plan would be immediate, clear and 'down to the last centavo," he said.

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