Creation of the Filipino Retailers' Fund
- A revolving fund named the Filipino Retailers' Fund is established to provide credit facilities for Filipino retailers.
- Administered by the Secretary of Commerce and Industry or a designated office.
- Provincial, city, and municipal treasurers act as deputies in fund administration.
Importers' Obligations to Filipino Retailers
- Importers of prime commodities are required to sell at least 30% of their imports to Filipino retailers.
- Must sell to Filipino retailers at the same mark-up as their other trade channels.
Use and Terms of the Filipino Retailers' Fund
- Fund may be used as a guarantee for loans or directly as loan funds for Filipino retailers.
- No more than 20% of the fund can be distributed as cash loans.
- Loans up to ₱5,000 may be granted to Filipino citizens who own and personally manage a retail store or wish to become retailers.
- Loans are payable in five equal annual installments with a 4% annual interest rate.
- Interest cannot be collected in advance.
- The retailer's assets are mortgaged to secure the loan.
Functions of the Retailers' Fund
- Promote and develop Filipino retail trade.
- Assist retailers with liberal credit facilities.
- Provide technical assistance and merchandising training.
- Enhance the competitiveness of Filipino retailers against foreign businessmen.
- Aim to shift control of the retail sector to Filipino merchants.
Loan Application Requirements
- Applications must be written and sworn statements.
- Must declare good moral standing and no prior convictions involving moral turpitude.
- Must state that loan proceeds will be used solely for purchasing goods to be sold at the retail store directly to the public.
Restrictions on Use of Loan Proceeds
- It is unlawful to use loan proceeds for purposes other than those stated in the application.
- Violation can lead to contract rescission and immediate demand for outstanding debt and interest.
Rule-Making and Technical Assistance
- The Secretary of Commerce and Industry shall issue rules and regulations to implement the Act.
- The Secretary will provide technical information and assistance to Filipino retailers at no cost.
Guidance Division Creation
- A guidance division within the Department of Commerce and Industry will process loan applications.
- The division will assist borrowers in making purchases efficiently.
Appropriation and Fund Management
- The National Treasury appropriates ₱20 million to establish the revolving Filipino Retailers' Fund.
- All income from the fund’s operation shall be reinvested into the fund for its purposes.
Effectivity
- The Act takes effect immediately upon approval.