Law Summary

SECTION 1: Establishment of the BMBE Development Fund

• Legal Principle: The BMBE Development Fund is established under the provisions of Section 10 of Republic Act (RA) 9178, which is the Barangay Micro Business Enterprises Act of 2002.
• Key Definitions:
  • BMBE Development Fund: A fund intended to support the growth and development of Barangay Micro Business Enterprises (BMBEs).
• Important Requirements:
  • The fund shall be administered by the Small and Medium Enterprise Development (SMED) Council.

SECTION 2: Beneficiaries of the BMBE Development Fund

• Legal Principle: Certain government agencies are eligible to access the BMBE Development Fund to support projects aimed at BMBE assistance.
• Key Definitions:
  • Beneficiary Agencies:
    • Department of Trade and Industry (DTI)
    • Department of Science and Technology (DOST)
    • University of the Philippines-Institute for Small Scale Industries (UP-ISSI)
    • Cooperative Development Authority (CDA)
    • Technical Education and Skills Development Authority (TESDA)
    • Technology and Livelihood Resource Center (TLRC)
• Important Requirements:
  • End beneficiaries shall be BMBEs as defined under Section 3 of RA 9178.

SECTION 3: Qualified Projects

• Legal Principle: Specifies the types of projects eligible for funding from the BMBE Development Fund.
• Key Definitions:
  • Qualified Projects: Activities that promote technology transfer, production and management training, and marketing assistance.
• Important Requirements:
  • Projects must not be funded by the regular budget of the proposing agency.
  • Examples of eligible projects include:
    • Entrepreneurship Development
    • Skills Training
    • Business Advisory Services
    • Technology Intervention
    • Policy Advocacy
• Relevant Timeframes: None specified.

SECTION 4: Procedures in Availing of the BMBE Development Fund

• Legal Principle: Outlines the process for beneficiary agencies to access the funds.
• Important Requirements:
  • Project proposals must be submitted to the SMED Council at least six months before the target implementation year.
  • A Technical Working Group (TWG) will evaluate proposals based on a merit point system.
  • Project proposals must include:
    • Project name and proponent details
    • Target beneficiaries and expected employment creation
    • Existing funding sources and total project cost
  • A Memorandum of Agreement (MOA) must be executed before fund disbursement.
• Relevant Timeframes:
  • Proposals must be submitted six months prior to the implementation year.

SECTION 5: Reporting System on Fund Administration

• Legal Principle: Establishes the accountability and reporting structure for the fund's administration.
• Important Requirements:
  • SMED Council to prepare annual accomplishment reports for Congress and the Office of the President.
  • The SB Corporation must submit semi-annual reports on fund utilization.
  • Executing agencies must provide quarterly audited reports on fund use and project progress.
• Relevant Timeframes:
  • Reports due semi-annually and quarterly.

SECTION 6: Effectivity

• Legal Principle: States when the order takes effect.
• Important Requirements:
  • The order shall take effect fifteen days after publication in a newspaper of general circulation.
• Relevant Timeframes:
  • 15 days post-publication.

SECTION 7: Separability Clause

• Legal Principle: Ensures the validity of the remaining provisions if any part of the order is deemed invalid or unconstitutional.

Key Takeaways

• The BMBE Development Fund is a governmental initiative aimed at supporting micro enterprises in the Philippines, administered by the SMED Council.
• Eligible agencies must submit project proposals for funding, which will be evaluated by a designated TWG.
• Comprehensive reporting and accountability measures are mandated for the effective use of the fund.
• The guidelines became effective 15 days post-publication, ensuring transparency and accessibility for all involved parties.