BSP CIRCULAR LETTER

: The SMED Council is mandated under Republic Act 6977, the Magna Carta for Small and Medium Enterprises, to review and adjust the present definition of small and medium enterprises as deemed necessary.
: President Fidel V. Ramos directed the SMED Council on February 14, 1995, to take appropriate steps for the continual review and necessary adjustments of the SME definitions.
: The existing definitions used for credit allocation purposes were no longer relevant due to the increase in prices since the last revision in 1992.
: Micro enterprises are businesses with total assets of P150,000 and below, inclusive of loans but excluding the land on which the office, plant, and equipment are situated.
: Cottage enterprises are defined as businesses with total assets above P150,000 up to P1,500,000.
: A small enterprise has total assets above P1,500,000 and up to P15,000,000.
: A medium-scale enterprise has total assets above P15,000,000 up to P60,000,000.
: No, the land where the enterprise’s office, plant, and equipment are situated are excluded from the computation of total assets.
: Yes, the definition covers single proprietorships, cooperatives, partnerships, and corporations engaged in industry, agribusiness, and/or services.
: All enterprises with total assets of fifteen million pesos and below are generically called small enterprises.