Establishment and Incentives for BMBEs

The State aims to accelerate economic development by promoting barangay micro business enterprises.
Encourages growth of Filipino entrepreneurial talents.
Integrates informal sector into the mainstream economy.
Reduces bureaucratic restrictions and enhances government intervention at the local level.
Provides incentives and benefits to create employment and reduce poverty.

Barangay Micro Business Enterprise (BMBE): A business entity engaged in production, processing, manufacturing, trading, or services with total assets (excluding land) not exceeding ₱3,000,000.
Definition subject to review and adjustment by the SMED Council.
Services exclude those by licensed professionals.
Certificate of Authority: Issued to registered BMBEs enabling them to operate and avail benefits.
Assets: All real or personal properties owned and used by BMBE (excluding land for tax exemption purposes).
Registration: Inclusion in the BMBE Registry.
Financing: Borrowings by BMBE after registration.

Registration handled by the city or municipal Treasurer’s Office.
Certificate of Authority issued within 15 working days upon submission of complete documents; otherwise, deemed registered.
LGUs may appoint BMBE Registration Officers and establish One-Stop-Business Registration Centers.
LGUs to periodically evaluate BMBEs' financial status.
Certificate of Authority is valid for two years, renewable every two years.
Registration fees capped at ₱1,000; certificates issued promptly and preferably free.
Minimal bureaucratic requirements and reasonable fees mandated.

Any natural or juridical person, cooperative, or association meeting the asset qualifications may register as BMBE.

BMBEs are exempt from minimum wage law coverage.
Employees still entitled to regular benefits like social security and healthcare.

Special credit windows for BMBEs to be established at several government financial institutions (LBP, DBP, SBGFC, PCFC).
GSIS and SSS to provide special credit windows for their members establishing BMBEs.
Encourages wholesale funds to private agencies and community-based organizations for direct credit support.
Loans to BMBEs count double towards compliance with certain laws.
Interest from these loans exempt from gross receipts tax.
Credit guarantee windows established via SBGFC and QUEDANCOR to mitigate lending risks.
Annual reporting on implementation by involved institutions to Congress.
BSP tasked with issuing implementing rules and incentivizing credit delivery.

BMBE Development Fund with ₱300 million endowment from PAGCOR, administered by SMED Council.
Fund available to DTI, DOST, UP ISSI, CDA, TESDA, TLRC for technology, training, and marketing assistance.
DTI to link BMBEs with larger enterprises and establish incentives for collaboration.
Annual reports on projects and programs to be submitted to Congressional Committees.

Business registration data to be accessible to private and non-government organizations for trade and investment promotion and business matching.

Philippine Information Agency, with DOLE, DILG, and DTI, to disseminate Act’s contents and benefits specifically to barangay level beneficiaries.

Willful violations punishable by fine of ₱25,000 to ₱50,000 and imprisonment of six months to two years.
Non-compliance with credit delivery provisions leads BSP to impose administrative sanctions and fines of at least ₱500,000 on government financial institutions.

DTI Secretary, in consultation with DILG, DOF Secretary, and BSP Governor, to promulgate rules within 90 days post-approval.
Rules effective 15 days after publication in a general circulation newspaper.

Invalid or unconstitutional provisions do not affect the validity of the remaining law.

Conflicting laws, decrees, orders, or regulations are amended, modified, or repealed accordingly.

The Act takes effect 15 days after publication in the Official Gazette or two general circulation newspapers.