Ano nga ba ang mga Magna Carta for MSMEs o Republic Act 9501?
Ano nga ba ang mga Magna Carta for MSMEs o Republic Act 9501?
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00:00This is a very important law that will strengthen small businesses in our country that we will discuss today.
00:07These are the Magna Carta for Micro, Small, and Medium Enterprises.
00:11Let's find out what are the benefits of this and how it will help our fellow countrymen in the business field.
00:20But before that, let's watch this first.
00:24Are you dreaming of building your own business?
00:28Or maybe your current business venture is even more promising?
00:31But you don't have a sufficient budget and your resources are scarce?
00:35Well, worry no more!
00:37Because of the implementation of Republic Act 9501 or better known as Magna Carta for Micro, Small, and Medium Enterprises,
00:46access to business funds is now easier.
00:50And with the help of Small Business Corporation, your dream business is now within reach.
00:56So, let's find out what is Republic Act 9501 and what is the role of Small Business Corporation in terms of business.
01:05Here in Rise and Shine, Philippines.
01:11To make our knowledge even wider, we will interview the board member of Small Business Corporation, Director Bong Magpayo.
01:22Good morning, Director Bong.
01:24Welcome back. Good morning.
01:25Rise and Shine, Sir Audrey and Sir Daniel.
01:28And to everyone who is listening and watching.
01:31Sir, let's talk about this. What is this Magna Carta for Micro, Small, and Medium Enterprises?
01:40First of all, if you look at it, 99% of the businesses in our country are built by Micro, Small, and Medium Enterprises or MSMEs.
01:53They are considered the backbone of our economy.
01:57Maybe because of this, there was a Magna Carta for MSMEs that became a law.
02:07Republic Act 9501.
02:09Wherein it mandates the government to support and strengthen the development of the micro and local businesses and industries of our country.
02:19One of their missions is to create an environment friendly for the businessmen
02:28and to provide easier access to finance wherein Small Business Corporation was created.
02:34Sir, can you give us a short background?
02:38What is Small Business Corporation and how does it help our countrymen who are MSMEs?
02:44Well, Small Business Corporation or SB Corp is an agency under the Department of Trade and Industry
02:52wherein it addresses the financial needs of our countrymen
02:56especially those who are not noticed by big financial institutions like banks.
03:04So, we'd like to say that we offer the best financing alternative to the last least and lost entrepreneurs of our society.
03:12Sir, kindly update us. What are the new programs of Small Business Corporation for our MSMEs?
03:22We have a lot of loan products, loan facilities that really meet the needs of our small but thriving businessmen of our country.
03:31But first of all, this is what we call RISE UP Multi-Purpose Loan.
03:36RISE UP, an acronym which means Resilient, Innovative, Sustainable, Enterprise, Unleash Your Power.
03:44This is an additional capital for our MSMEs.
03:49CLEAN, meaning no collateral up to 5 million.
03:53LOW INTEREST, 3%.
03:55For CONDUITS, 6% to 7%, well, up to 8% depending on the credit investigation and study.
04:04For RETAIL, we can go there.
04:08Sir Bong, before you give such a big loan, like 5 million,
04:14will there be a study on your business?
04:18Is it feasible or will you be able to pay your loan?
04:22For our countrymen who are borrowing 100,000 Pesos below,
04:26we just need a simple thing.
04:28Barangay Clearance, that they have a business in a neighboring barangay
04:33and Government ID.
04:35We want them to grow.
04:37But beyond 100,000, of course, that's where we call a little background checking,
04:43a little study of the business.
04:45Because the idea there is, of course, we are taking care of the money of the country.
04:50We are just custodians.
04:52And of course, we don't want to lose or be in debt
04:56those who want to try in business.
04:58That's right, Sir Audrey.
05:00We want to teach them to walk on their own feet
05:04but in a fast way, with loans from small business corporations.
05:08Sir Bong, who can apply?
05:11For example, me, can I apply?
05:13Can we? What are the requirements?
05:15For example, do you want a maximum of 5 million?
05:17Of course, this is possible.
05:19What we need is, if you are already borrowing 5 million,
05:23it's clean, there's no collateral.
05:25What we need is, of course, the corporation paper,
05:28if it's a corporation.
05:29Articles of incorporation,
05:31Certificate of Registration,
05:33if it's DTI Single Prop.
05:35And a little background of,
05:38of course, we will do a background check.
05:40Is this really a business?
05:42Because we don't want to be fooled
05:44that it's a business.
05:46So, we will have a background check,
05:50corporate submission of the government IDs,
05:54if there's an ITR, it's better to submit.
05:57Basically, that's all we need.
06:00But can I help you by assisting,
06:03if the business is right to enter,
06:06or is it really profitable,
06:09and it won't exceed its time,
06:11and of course, the money, right?
06:13That's right.
06:14That's included, Sir Audrey, in our investigation,
06:17in the study.
06:19We will look at how much you need.
06:21Do you need to meet your financial need or want?
06:26It's hard for us to give a beyond
06:29of what you need.
06:31We can only use it for buying appliances at home.
06:34So, we need to know
06:36what is its, in terms of credit term,
06:39additional working capital requirement.
06:41We will determine that.
06:43Sir, what would you recommend
06:45to small businesses,
06:47and even start-ups,
06:49those who want to start a business?
06:51Well, for those who are starting a business,
06:53you have to start with your interest, of course.
06:56You have to love what you're doing,
06:58even if it's just for a day.
07:00Even if you lose a little,
07:02the business will continue.
07:03Second is,
07:04let's not be too dependent on our income.
07:06There are small business corporations.
07:08Just like you said,
07:09why would you use your own capital,
07:11or savings, or income?
07:13You can use the money of the people
07:15in the right way.
07:17So, that's what I would recommend.
07:19Look at small business corporations.
07:21Don't look at other,
07:23let's call them loan sharks.
07:25In 2024,
07:27what are the business
07:29trends
07:31that are trending?
07:33Is it still food?
07:35It usually goes with the population.
07:37If you will notice,
07:39our population is increasing.
07:41I think we're hitting now at what?
07:4313 million?
07:45Yes.
07:47So, all direct and indirect
07:49businesses related to
07:51the growth of population.
07:53Of course, digitalization.
07:55The apps.
07:57In the past,
07:59you have to get out,
08:01get a taxi,
08:03get out of the subdivision.
08:05Now, you just go to your Facebook,
08:07click the app,
08:09lo and behold,
08:11there's your taxi.
08:13So, those businesses.
08:15If you're creative,
08:17the number one thing is
08:19the creativeness of the Philippines
08:21of DTI.
08:23So, it doesn't mean you don't have money
08:25to invest, you can't do business,
08:27you can loan
08:29through small business corporations.
08:31Thank you very much
08:33for providing information
08:35and important knowledge
08:37about business.
08:39Again, we are joined by
08:41Director Bong Magpayo. Thank you very much, sir.
08:43Thank you, sir. Thank you.