ROXAS SEES SPEEDY PASSAGE OF SME LAW AMENDMENTS

Senator Mar Roxas is confident that the Senate will soon pass a bill that would provide crucial assistance to micro, small and medium enterprises by amending the Magna Carta for Small Enterprises or Republic Act 6977.

"Changes to the SME law will ensure the much-needed support to our smaller businesses, in order for them to reach their full potential and maximize their contributions to the economy," said Roxas, author of Senate Bill No. 108 which is set for sponsorship by Senate economic affairs committee chair Loren Legarda.

"It is high time we give additional assistance to our SME exporters, who have had to deal with the diminished buying power of the dollar," Roxas said.

The Senate committees on economic affairs, banks, financial institutions & currencies, and finance had managed to go over Roxas' bill quickly, as virtually the same bill had been filed and passed by the Senate in the 13th Congress.

Roxas noted that micro, small and medium enterprises comprised 99.6% of local businesses and employs 70% of the country's total work force. However, MSMEs' full potential has yet to be achieved, as they contribute only about 30% to the country's economy.

SB 108 would require lending institutions to set aside at least 8% of their loan portfolio for micro and small enterprises, up from the present 6% minimum.

"The benefit of shifting the allocation of credit resources to SMEs can be summed up in one word: opportunities. Opportunities for projects, opportunities for jobs, opportunities for expansion. This will bring real development, not just in the financial markets, but in the actual way of life of Juan de la Cruz," the Senator said.

The bill also seeks to transform the Small Business Guarantee and Finance Corp. into the Small Business Corp., in charge of implementing programs to assist micro, small and medium enterprises in all areas. Its authorized capital stock would be increased from P5 billion to P10 billion.

"We want to strengthen the SB Corp's mandate from its previous incarnation, to make it more responsive to the concerns of the business and to provide it the needed financing," Roxas said.

In the last Congress, bicameral talks on the measure were not completed due to lack of time. He thanked Senator Legarda for sponsoring the bill early in the first regular session.

"Let's fast-track passage of this bill early on and allow our enterprises to feel the benefits right away," Roxas urged colleagues in the Senate and House of Representatives.