Assistance for Women Micro and Cottage Businesses

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Republic Act No. 7882: Assistance for Women Micro and Cottage Businesses

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Title Supreme Court: Assistance for Women Micro and Cottage Businesses

Law: Republic Act No. 7882

Decision Date: Feb 20, 1995

A Philippine law aims to provide assistance to Filipino women in owning and managing small business enterprises, offering loans and technical training to eligible women with a good sales track record or certification from a government-accredited training institution.

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Coverage of the Act

Applies to all Filipino women citizens who are at least 18 years old.
Benefits are granted regardless of the woman's civil status.

Assistance to Women with Existing Micro and Cottage Businesses

Priority to obtain loans if engaged for at least one year in micro or cottage business.
Eligible businesses have daily inventory worth not more than P25,000 or business equipment book value not more than P50,000.
Loan amount limited to the value of business equipment.
Loan interest rate is either the prime rate or 12% per annum, whichever is lower.
Eligibility requires a good sales track record.

Business Learner Eligibility and Loan Conditions

Women certified by TESDA or equivalent government/accredited training institutions as fit to operate micro and cottage business with capitalization up to P25,000 may obtain loans.
Loans are not granted for retail store operations.
Loan use limited to purchase of basic equipment, tools, and materials.
Equipment and tools purchased through loan are subject to chattel mortgage in favor of the lending institution.

Technical Training Provision

TESDA is mandated to provide free technical training and related programs to women availing of loan benefits.

Implementing Authority

The Bureau of Small and Medium Business Development of the Department of Trade and Industry is tasked with executing the Act’s objectives.
It issues certifications of eligibility for loans as required by the law.

Assurance of Loan Availability

Government financing institutions must earmark five percent (5%) of their loan portfolio for implementation of this Act.

Rulemaking Authority

The Department of Trade and Industry is empowered to promulgate necessary rules and regulations for the law’s implementation.

Prohibited Acts

Selling, mortgaging, pledging, or encumbering equipment, tools, or materials purchased through loan while loan is unpaid.
Unjustified refusal, denial, or delay in granting loans as provided by the law.

Penalties for Violations

Violators face imprisonment of one year, a fine of not less than P5,000, or both.

Effectivity

The Act takes effect 15 days after publication in two newspapers of general circulation.

END