QuestionsQuestions (BIR REGULATIONS NO. 30-2002)
DAO No. 12 prescribes the rules and regulations implementing R.A. 7882 to provide guidance and compliance measures for giving assistance to Filipino women engaging in micro and cottage business enterprises.
A micro enterprise has total assets of P150,000.00 and below, while a cottage enterprise has total assets above P150,000.00 up to P1,500,000.00, excluding the land where the business office/plant/equipment are situated (inclusive of assets arising from loans).
Loan Fund refers to 5% of the loan portfolio of all government financing institutions (GFIs). If GFIs extended loans under R.A. 6977 to women entrepreneurs for micro/cottage categories, such loans are considered with R.A. 7882 and vice versa.
The GFIs are Philippine National Bank (PNB), Land Bank of the Philippines, and Development Bank of the Philippines (DBP).
All women who are Philippine citizens, at least 18 years old, regardless of civil status, particularly those who are unemployed, distressed, or whose family income is below the poverty line.
The NGO/Primary Organization may either (1) on-lend to women borrowers up to a maximum loan amount of P50,000 per borrower, or (2) set up its own project for its members with a maximum assistance of P50,000 per member.
They must: (1) have continuous successful on-lending operations for at least 1 year; (2) be duly registered (SEC/CDA/appropriate agency) for legal personality; (3) have a management board of high standing in the community; (4) be a proponent counterpart of 10% of total project cost; (5) have a permanent office; (6) have at least one permanent staff handling the program, preferably a woman; (7) have annual externally audited financial statements; (8) have collection rate over 80%; and (9) NGOs run by and for women get priority, and must list the number of women entrepreneurs beneficiaries and loan amounts requested.
Existing women entrepreneurs are those engaged at least 1 year in any micro or cottage business with requirements such as daily inventory not more than P25,000 or business equipment book value not more than P50,000 and a good sales track record. Potential women entrepreneurs are those engaged less than 1 year (or totally new) and whose projects have maximum capitalization of only P25,000, and who have undergone training certified after training in government or government-accredited institutions.
The loan must be used for the purchase of basic equipment, tools, or materials for manufacturing, processing, trading, and service activities.
For NGOs/Primary Organizations: maximum loan amount of P2,000,000 for relending to women entrepreneurs. For women entrepreneurs: Existing—maximum P50,000 per woman member/borrower but not to exceed the value of her business equipment; Beginner—maximum P25,000 per woman member/borrower.
The interest rate imposed by GFIs is the Prime Rate or 12% per annum, whichever is lower.
Women borrowers must execute a chattel mortgage on the machineries and equipment of the project. For NGOs/Primary Organizations, there are joint and several signatures (JSS) of principal stockholders.
Loan maturities shall not exceed three (3) years inclusive of a six (6) months grace period on principal.
Repayments are made directly to the GFI branch nearest the borrower, payable monthly, quarterly, or semi-annually.
Renewal applications are treated as new applications (starting from step one of processing). Only borrowers with up-to-date payments are entitled to renew.
If there are six (6) or more installment in arrears, or if arrearages reach 20% of the total outstanding balance, the GFI after monitoring and investigation may recommend restructuring or declare the loan due and demandable.
Borrowers are prohibited from selling, mortgaging, pledging, or otherwise encumbering any equipment, tools, or materials procured through the loan and obtained under R.A. 7882 while the loan is not yet fully paid; and GFIs are prohibited from refusing, denying, or delaying granting loans provided for by the Act without justifiable cause.
The two co-makers are held liable to pay the outstanding balance at the time of death, or the equipment/machineries/tools purchased are foreclosed as agreed upon in the chattel mortgage; in certain cases where co-makers cannot be forced to pay, foreclosure of the purchased equipment/machineries is strictly enforced per the chattel mortgage.