Rationalization of National Livelihood Fund Use

Section 1 is grounded on the statutory transfer/attachment under Section 37 of Republic Act No. 6657, which attaches the BKKK Secretariat and the BKKK Capital Fund/National Livelihood Support Fund to the Land Bank of the Philippines.
The Order implements the administrative supervision framework previously institutionalized by Administrative Order No. 75 (August 6, 1993) through an Executive Committee.
The policy context includes Republic Act No. 8425, which mandates People’s Credit and Finance Corporation (PCFC) as the main vehicle for microfinance services for the exclusive use of the poor.
Memorandum Order No. 11 (August 13, 1998) directs the Land Bank of the Philippines to invest additional P900 million from the National Livelihood Support Fund to PCFC.
Administrative Order No. 45 (December 22, 1998) is noted as having abolished the Executive Committee of the National Livelihood Support Fund.
The Order recognizes that Administrative Order No. 45 (December 22, 1998) transformed/renamed the BKKK Capital Fund into the Trust Fund, otherwise known as the ERAP Trust Fund.
The Order requires formulation of implementing guidelines under Section 5, but it does not name any specific implementing rules beyond that directive.

The Order directs the rationalization of utilization of the former BKKK Fund in relation to other mandated resources to effectively serve the poor, particularly farmers and marginalized members of rural communities.
The Order establishes Land Bank of the Philippines supervision as the governance structure for the ERAP Trust Fund and its Secretariat under Section 1 and Section 2.
The Order reorganizes the Secretariat to function as a livelihood and enterprise development, generation, and promotion agency under Section 3.

The BKKK Capital Fund/National Livelihood Support Fund, as transformed into the Effective Response to Alleviate Poverty (ERAP) Trust Fund (the ERAP Trust Fund), remains under the supervision of the Land Bank of the Philippines under Section 1.
Section 2 creates a Management Committee as the policy-making body through which the Land Bank of the Philippines exercises supervision over the Fund and the Secretariat.
The Management Committee is composed of:
- President, Land Bank of the Philippines — Chairman
- Executive Director, NLSF Secretariat — Vice Chairman
- Representatives from Office of the President, Department of Agrarian Reform, Department of Agriculture, Department of Interior and Local Government, People’s Credit and Finance Corporation, Farmers Organizations, and Labor Sector — each as Member.
The Order assigns the committee function as the mechanism for Land Bank supervision, establishing a structured policy-making forum under Section 2.

The National Livelihood Support Fund Secretariat is reorganized to serve as the ERAP Trust Fund Secretariat under Section 3.
Under Section 3, the Secretariat is realigned into a livelihood and enterprise development, generation and promotion agency of the government.
The Executive Director of the Secretariat appoints Secretariat personnel based on the DBM approved organizational structure and staffing pattern under Section 3.
Section 3 provides a separation benefit for personnel who are not absorbed, granting separation benefits equivalent to two (2) months latest salary received for every year of government service.

The NLSF Secretariat is directed under Section 4 to establish a resource development instrumentality for policy development and capability building of its partners and beneficiaries.

Under Section 5, the President of the Land Bank of the Philippines and the Executive Director of the NLSF Secretariat must formulate and issue implementing guidelines for the Executive Order.
Under Section 6, the NLSF Secretariat must submit annual reports to the Office of the President.

Section 7 revokes, amends, or modifies all executive issuances, orders, rules, and regulations that are inconsistent with Executive Order No. 75.