Fund Allocation and Utilization
- Each Congressman or Senator may be allocated PHP 12 million to support rural development efforts.
- The loan/grant portion is designated for loanable funds to selected recipients.
- Loans are channeled only through government agencies or financial institutions focused on rural sector assistance.
- The Cooperative Development Authority (CDA) is one designated agency for this purpose.
Procedures for Fund Release and Administration
- The Congressman/Senator must request the Department of Budget and Management (DBM) for fund release specifying amount and purpose.
- Upon approval, CDA coordinates with the depository bank to receive the funds from DBM.
- CDA disburses loans/grants to selected cooperatives after ensuring compliance with all requirements.
Policies Governing the Loan Outlay Component
- CDA must enter into a Memorandum of Agreement with each Congressman/Senator regarding fund disposition to cooperatives.
- Selection of borrower cooperatives is the responsibility of the Congressman/Senator, assisted by the CDA, specifying loan details including amount, interest rate, and maturity period.
- Loan extensions must adhere to sound lending and business principles aimed at cooperative growth and service improvement.
- Borrower cooperatives are required to submit loan applications with a project feasibility study and Board resolutions indicating intent to borrow.
- Submission of an implementation plan is mandatory for effective monitoring and ensuring proper loan utilization and repayment.
- Borrower cooperatives must provide monthly reports on operations, including cash flow and financial statements.
- All repayments collected by CDA must be remitted to the National Treasury.
Policies Governing the Grant Outlay Component
- Grants must be allocated to federations for relending to affiliated member cooperatives.
- Federations, with CDA assistance, are to establish a Revolving Fund from repayment principal and interest.
- The Revolving Fund serves as a sustainable loan source for affiliate cooperatives.
- Monitoring is conducted by a District Countrywide Development Fund Committee, composed of the Congressman/Senator or representative and a CDA representative.
- Part of the fund's income is dedicated to institutional development, including cooperative education and training for officers, management staff, and members.
- Grantee cooperatives must submit monthly financial reports on transactions, disbursements, and repayments to CDA through the Committee representative.
- CDA analyzes reports and provides feedback and recommendations aimed at cooperative strengthening and improvement.