Rationalization of National Livelihood Fund Use

Section 1 recognizes that the BKKK Capital Fund/National Livelihood Support Fund was transferred and attached to the Land Bank of the Philippines under Section 37 of Republic Act No. 6657.
The Order’s recitals reference E.O. 238 (July 22, 1987), which directed that the BKKK Capital Fund and its earnings be used to promote, generate, and develop livelihood opportunities.
The Order’s recitals reference Administrative Order No. 75 (August 6, 1993), which institutionalized Land Bank administrative supervision over the BKKK Secretariat and the BKKK Capital Fund/National Livelihood Support Fund through an Executive Committee.
The Order’s recitals reference Republic Act No. 8425, which mandates Peopleas Credit and Finance Corporation (PCFC) as the main vehicle for microfinance services for the exclusive use of the poor.
The Order’s recitals reference Memorandum Order No. 11 (August 13, 1998), directing Land Bank to invest an additional P900 million from the National Livelihood Support Fund to PCFC.
The Order’s recitals reference Administrative Order No. 45 (December 22, 1998), which abolished the Executive Committee of the National Livelihood Support Fund.
The Order’s recitals state that Administrative Order No. 45 (December 22, 1998) transformed/renamed the BKKK Capital Fund into a Trust Fund known as Effective Response to Alleviate Poverty (ERAP) Trust Fund.

The Order directs the rationalization of the utilization of the BKKK Fund in relation to other mandated resources to effectively serve the needs of the poor, particularly farmers and marginalized members of rural communities.
The Order establishes that supervision and governance of the ERAP Trust Fund and its Secretariat must support coordinated livelihood and enterprise development.

Section 1 provides that the BKKK Capital Fund/National Livelihood Support Fund, transformed into the Effective Response to Alleviate Poverty (ERAP) Trust Fund (the “ERAP Trust Fund”), shall remain under the supervision of the Land Bank of the Philippines.
The ERAP Trust Fund is treated as the operational continuation of the BKKK Capital Fund/National Livelihood Support Fund structure, now under ERAP naming and organization as provided in the Order.

Section 2 organizes 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 the following members:
- 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
  - Peopleas Credit and Finance Corporation
  - Farmers Organizations
  - Labor Sector

Section 3 reorganizes the National Livelihood Support Fund Secretariat to serve as the ERAP Trust Fund Secretariat.
Section 3 directs the ERAP Trust Fund Secretariat to function as a livelihood and enterprise development, generation and promotion agency of the government.
The Executive Director appoints Secretariat personnel based on the DBM-approved organizational structure and staffing pattern.
Section 3 provides separation benefits for personnel who may not be absorbed, computed as two (2) months latest salary received for every year of government service.

Section 4 directs the NLSF Secretariat to establish a resource development instrumentality for:
- policy development, and
- capability building of its partners and beneficiaries.

Section 5 directs the President of the Land Bank of the Philippines and the Executive Director of the NLSF Secretariat to formulate and issue the implementing guidelines of the Executive Order.
Section 6 requires the NLSF Secretariat to 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.
Section 8 provides that the Order takes effect immediately.