bmbes law ra no. 9178

8/9/2019 Bmbes Law Ra No. 9178

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Republic of the Philippines

Congress of the Philippines

Metro Manila

Twelfth Congress

Second Regular Session

Begun and held in Metro Manila, on Monday, the twenty-second day of July, two

thousand two.

REPUBLIC ACT N! "#$%

No&e'ber #() *++*

AN ACT T PR,TE T-E ESTABLIS-,ENT . BARAN/A0 ,ICR BUSINESS

ENTERPRISES 1B,BEs2) PR3I4IN/ INCENTI3ES AN4 BENE.ITS T-ERE.R)AN4 .R T-ER PURPSES!

Be it enacted by the Senate and House of Representatives of the Philippines in

Congress assembled.

PRELI,INAR0 PR3ISINS

Section #!Short TitleThis Act shall be known as the "Barangay Micro Business

Enterprises BMBE!s Act of #$$#."

Sec! *!Declaration of Policy %t is hereby declared to be the policy of the &tate to

hasten the country!s econo'ic de(elop'ent by encouraging the for'ation and

growth of barangay 'icro business enterprises which e)ecti(ely ser(e as seedbeds

of *ilipino entrepreneurial talents, and intergranting those in the infor'al sector

with the 'ainstrea' econo'y, through the rationali+ation of bureaucratic

restrictions, the acti(e granting of incenti(es and benets to generate 'uch-needed

e'ploy'ent and alle(iate po(erty.chanrobles (irtualaw library

Sec! (!Denition of Terms As used in this Act, the following ter's shall 'ean

a "Barangay Micro Business Enterprise," hereinafter referred to as BMBE, refers to

any business entity or enterprise engaged in the production, processing or

'anufacturing of products or co''odities, including agro-processing, trading and

ser(ices, whose total assets including those arising fro' loans but eclusi(e of the

land on which the particular business entity!s o/ce, plant and e0uip'ent are

situated, shall not be 'ore than Three Million 1esos 12,$$$,$$$.$$ The Abo(e

denition shall be sub3ected to re(iew and upward ad3ust'ent by the &ME4 5ouncil,

as 'andated under 6epublic Act 7o. 89::, as a'ended by 6epublic Act 7o. ;#;9.

*or the purpose of this Act, "ser(ice" shall eclude those rendered by any one, who

is duly licensed go(ern'ent after ha(ing passed a go(ern'ent licensure

ea'ination, in connection with the eercise of one!s profession.

b "5erticate of Authority" is the certicate issued granting the authority to theregistered BMBE to operate and be entitled to the benets and pri(ileges accorded

thereto.

c "Assets" refers to all kinds of properties, real or personal, owned by the BMBE

and used for the conduct of its business as dened by the &ME4

5ouncil ProvidedThat for the purpose of ee'ption fro' taes and fees under this


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Act, this ter' shall 'ean all kinds of properties, real or personal, owned and


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*inance 5orporation 15*5 shall set up a special credit window that will ser(ice the

nancing needs of BMBEs registered under this Act consistent with the Banko

&entral ng 1ilipinas B&1 policies rules and regulations. The o(ern'ent &er(ice

%nsurance &yste' &%& and &ocial &ecurity &yste' &&& shall likewise set up a

special credit window that will ser(e the nancing needs of their respecti(e

'e'bers who wish to establish a BMBE. The concerned nancial institutions *%sencouraged to wholesale the funds to accredited pri(ate nancial institutions

including co''unity-based organi+ations such as credit, cooperati(es, non-

go(ern'ent organi+ations 7=s and people!s organi+ations, which will in turn,

directly pro(ide credit support to BMBEs.

All loans fro' whate(er sources granted to BMBEs under this Act shall be

considered as part of alternati(e co'pliance to 1residential 4ecree no, :>:,,

otherwise known as the Agri-Agra @aw, or to 6epublic Act. 7o. 89::, known as the

Magna 5arta for &'all and Mediu' Enterprises, as a'ended. *or purposes of

co'pliance with presidential 4ecree no. :>: and 6epublic Act 7o. 89::, as

a'ended, loans granted to BMBEs under this Act shall be co'puted at twice the

a'ount of the face (alue of the loans.

To 'ini'i+e the risks in lending to the BMBEs, the &B*5 and the Fuedan and 6ural

5redit uarantee 5orporation FE4A75=6 under the 4epart'ent of Agriculture,

in case of agribusiness acti(ities, shall set up a special guarantee window to pro(ide

the necessary credit guarantee to BMBEs unde rtheir respecti(e guarantee

progra's.

The @B1, 4B1. 15*5, &B*5, &&&, &%&, and FE4A75=6 shall annually report to the

appropriate 5o''ittee of Both Couses of 5ongress on the status of the

i'ple'entation of this pro(ision.

The B&1 shall for'ulate the rules for the i'ple'entation of this pro(ision and shall

likewise establish incenti(e progra's to encourage and i'pro(e credit deli(ery to

the BMBEs.chanrobles (irtualaw library

Sec! #+!Technology Transfer Production and (anagement Training and mar*eting

+ssistance A BMBE 4e(elop'ent *und shall be set up with an endow'ent of Three

Cundred Million pesos 12$$,$$$,$$$.$$ fro' the 1hilippine A'use'ent and

a'ing 5orporation 1A5=6 and shall be ad'inistered by the &ME4 5ouncil.

The 4epart'ent of Trade and %ndustry 4T%, the 4epart'ent of &cience andTechnology 4=&T, the uni(ersity of the 1hilippines %nstitute for &'all &cale

%ndustries 1 %&&%, 5ooperati(e 4e(elop'ent Authority 54A, Technical Education

and &kills 4e(elop'ent Authority TE&4A, and Technology and @i(elihood 6esource

5enter T@65 'ay a(ail of the said *und for technology transfer, production and

'anage'ent training and 'arketing assistance to BMBEs.

The 4T%, in coordination with the pri(ate sector and non-go(ern'ent organi+ation

7=s, shall eplore the possibilities of linking or 'atching-up BMBEs with s'all,

'ediu' and large enterprises and likewise establish incenti(es therefor.

The 4T%, in behalf of the 4=&T, 1 %&&%, 54A. TE&4A and T@65 shall be re0uired tofurnish the appropriate 5o''ittees of both Couses of 5ongress a yearly report on

the de(elop'ent and acco'plish'ents of their pro3ects and progra's in relation to

technology transfer, production and 'anage'ent training and 'arketing assistance

etended to BMBEs.chanrobles (irtualaw library


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Sec! ##!Trade and ,nvestment PromotionsThe data gathered fro' business

registration shall be 'ade accessible to and shall be utili+ed by pri(ate sector

organi+ations and non-go(ern'ent organi+ations for purposes of business

'atching, trade and in(est'ent pro'otion.

IN.R,ATIN 4ISSE,INATIN

Sec! #*!,nformation Dissemination "The 1hilippine %nfor'ation Agency 1%A, in

accordance with the 4epart'ent of @abor and E'ploy'ent 4=@E, the 4%@ and

the 4T%, shall ensure the proper and ade0uate infor'ation disse'ination of the

contents and benets of this Act to the general public especially to its intended

beneciaries specically in the barangay le(el.

PENALT0

Sec! #(!Penalty " Any person who shall willfully (iolates any pro(ision of this Act or

who shall in any 'anner co''it any act to defeat any pro(isions of this Act shall,

upon con(iction, be punished by a ne of not less than twenty-(e Thousand 1esos

1#?,$$$.$$ but not 'ore than *ifty Thousand 1esos 1?$,$$$.$$ and su)er

i'prison'ent of not less than si 8 'onths but not 'ore than two # years.

%n case of non-co'pliance with the pro(isions of &ec. 9 of this Act, the B&1 shall

i'pose ad'inistrati(e sanctions and other penalties on the concerned go(ern'ent

nancial institutions, including a ne of not less than *i(e Cundred Thousand 1esos

1?$$,$$$.$$

,ISCELLANEUS PR3ISINS

Sec! #5!+nnual ReportThe 4%@, 4T%, and B&1 shall sub'it an annual report to the5ongress on the status of the i'ple'entation of this Act.chanrobles (irtualaw

library

Sec! #6!,mplementing Rules and RegulationsThe &ecretary of the 4epart'ent of

Trade and %ndustry, in consultation with the &ecretaries of the 4%@, 4=*, and the

B&1 o(ernor shall for'ulate the necessary ruled and regulations to i'ple'ent the

pro(isions of this Act within ninety 9$ days after its appro(al. The rules and

regulations issued pursuant to this section shall take e)ect fteen >? days after its

publication in a newspaper of general circulation.chanrobles (irtualaw library

Sec! #7!Separably Clause " %f any pro(ision or part hereof, is held in(alid orunconstitutional, the re'ainder of the law or the pro(ision not otherwise a)ected

shall re'ain (alid and subsisting.chanrobles (irtualaw library

Sec! #$!Repealing Clause Eisting laws, presidential decrees, eecuti(e orders,

procla'ations or ad'inistrati(e regulations that are inconsistent with the pro(isions

of this Act are hereby a'ended, 'odied, superseded or repealed

accordingly.chanrobles (irtualaw library

Sec! #%!$-ectivityThis Act shall take e)ect fteen >? days after its publication in

the %ce /a0ette or in at least two # newspaper of general circulation.

Approved:

.RAN8LIN 4RILN

1resident of the &enate

9SE 4E 3ENECIA 9R!

&peaker of the Couse of


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6epresentati(es

This Act, which is a consolidation of &enate Bill 7o. >;?? and Couse Bill 7o. G;:>

was nally passed by the &enate and the Couse of 6epresentati(es on =ctober #G,

#$$# and =ctober #2, #$$#, respecti(ely.

SCAR /! 0ABES

&ecretary of &enate

RBERT P! NA:AREN

&ecretary eneral

Couse of 6epresenati(es

Approved: November 13, 2002

GLORIA MACAPAGAL-ARROYO

President o t!e P!i"ippines

bmbes law ra no. 9178

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