Question & AnswerQ&A (Republic Act No. 7882)
The main objective of Republic Act No. 7882 is to provide all possible assistance to Filipino women in their pursuit of owning, operating, and managing small business enterprises.
All women who are citizens of the Philippines at least eighteen (18) years of age, regardless of civil status, are covered under the provisions of this Act.
A woman must have been engaged for at least one (1) year in any micro and cottage business with a daily inventory of goods worth not more than Twenty-five thousand pesos (₱25,000) or with business equipment with a book value not more than Fifty thousand pesos (₱50,000). She must also have a good track record in sales.
Loans may be granted at the prime interest rate or at the rate of twelve percent (12%) per annum, whichever is lower.
Loans for operation of a retail store shall not be granted. The loan shall be limited to the purchase of basic equipment, tools, and materials, which shall be subject to chattel mortgage in favor of the government financing institution concerned.
The Technical Education and Skills Development Authority (TESDA) is responsible for providing and conducting necessary technical training and programs free of charge.
The Bureau of Small and Medium Business Development of the Department of Trade and Industry is tasked with implementing the Act and issuing certifications of eligibility.
Five percent (5%) of the loan portfolio of all government financing institutions shall be earmarked for this purpose.
It is prohibited to: 1) sell, mortgage, pledge, or encumber any equipment, tools, or materials procured through the loan while unpaid; 2) refuse, deny, or delay without justifiable cause granting loans as provided in this Act.
They shall be sentenced to suffer a penalty of one (1) year imprisonment or a fine of not less than Five thousand pesos (₱5,000) or both.
The Act took effect fifteen (15) days after its publication in two newspapers of general circulation.