Question & AnswerQ&A (DTI ADMINISTRATIVE ORDER NO. 02, S. 2006)
The BMBE Development Fund is a fund set up pursuant to the first paragraph of Section 10 of Republic Act 9178, to support the development of Barangay Micro Business Enterprises (BMBEs). It is administered by the Small and Medium Enterprise Development (SMED) Council.
The beneficiary government agencies are Department of Trade and Industry (DTI), Department of Science and Technology (DOST), University of the Philippines-Institute for Small Scale Industries (UP-ISSI), Cooperative Development Authority (CDA), Technical Education and Skills Development Authority (TESDA), and Technology and Livelihood Resource Center (TLRC).
The end beneficiaries of the BMBE Development Fund are Barangay Micro Business Enterprises (BMBEs) as defined under Section 3 of Republic Act 9178.
Qualified projects include those related to entrepreneurship development, skills training, business advisory services, technology intervention, technology incubation/commercialization, policy advocacy activities and studies, database development, business matching, trade fairs and missions, and other activities benefiting BMBEs, provided they are not funded by the proponents' regular budget.
The beneficiary agency must submit project proposals to the SMED Council at least six months before the target implementation year. A Technical Working Group evaluates proposals using a merit-based point system. Proposals must include detailed project information and an MOA must be signed between the executing agency and SMED Council before fund transfer.
The TWG is composed of representatives from the Bangko Sentral ng Pilipinas (BSP), National Economic and Development Authority (NEDA), Small Business Guarantee and Finance Corporation (SBGFC), Department of Labor and Employment (DOLE), and a representative from the SME sector who heads the team.
Proposals must include the project name, proponent, responsible officials/designation, target beneficiaries, employment to be created, existing funding agencies, deliverables, total project cost, reasons for requesting financial assistance, and actions taken by the concerned agency as the project screening committee.
The SMED Council must prepare annual accomplishment reports for Congress and the Office of the President. The Small Business Guarantee and Finance Corporation must submit semi-annual reports on fund utilization signed by the Chairman and COA Resident Auditor. Executing agencies must provide quarterly audited reports on fund utilization and project progress.
The guidelines took effect fifteen days after publication in a newspaper of general circulation following their issuance on 24 February 2006.
The MOA is an agreement entered into by the executing agency and the SMED Council which must be signed before the transfer of approved project funds can be effected, ensuring clarity on roles and obligations.