Composition and Allocation of the Fund
- Initial seed money of ₱100 million allocated to the Fund.
- ₱30 million released from the 1986 General Appropriations Act for the Self-Employment Loan Assistance component.
- ₱70 million to be released from the 1987 General Appropriations Act, distributed among program components as determined by the Ministry.
- Key components:
- Self-Employment Loan Assistance: Loans for encouraging self-employment.
- Subcontracting Financing: Financing aimed at subcontracting businesses.
- Income and interest earned by the Fund accrue to the Fund for relending and to cover operational and administrative expenses.
- Compensation for contractual and casual employees may be charged to the Fund under OBM regulations.
Role of Financial Institutions
- Seed money to be remitted to selected government financial institutions.
- Fund to be administered as trust funds under terms agreed with the Ministry and financial institutions.
Powers and Functions of the Ministry of Trade and Industry
- Identify priority areas and localities for program implementation.
- Designate Ministry units, officers, and staff for program implementation.
- Select government financial institutions to administer the trust fund.
- Determine loan amounts, borrower qualifications, and loan terms and conditions.
- Exercise other powers necessary for program success.
Reporting Requirements
- Ministry required to submit quarterly reports on income and expenditures of the Fund to the Office of Budget and Management.
Rulemaking Authority
- Implementing rules and regulations to be jointly formulated by the Ministry of Trade and Industry and the Office of the Budget and Management.
Effectivity
- The Executive Order takes immediate effect upon issuance on April 13, 1987.