Small enterprises will now benefit from the Credit Surety Fund Cooperative Act of 2015 with the signing of its implementing rules and regulations (IRR), according to Sen. Bam Aquino.

 “Finally, small enterprises can access loans and financing with the full implementation of the Republic Act 10744,” said Sen. Bam.

 Sen. Bam was the author and principal sponsor of the measure in the Senate during his time as chairman of the Committee on Trade, Commerce and Entrepreneurship in the 16th Congress.

 The law institutionalizes the Bangko Sentral ng Pilipinas’ Credit Surety Fund (CSF) program, which provides small businesses loans ranging from P200,000 to P5 million.

 Sen, Bam pointed out that loan needs for small businesses usually range from P500,000 to P5 million, which is too big for microfinance institutions and perceived as too risky by banks, which usually ask for collateral.

 “Through this measure, we hope more small enterprises will have access to the capital they need to grow their business,” Sen. Bam said.

The law mandates the BSP, local government units, cooperatives, microfinance NGOs and government financing institutions (GFIs) to create an initial fund.

 This initial fund may be used by entrepreneurs and businessmen belonging to cooperatives and microfinance NGOs, which helped establish it, as collateral or guarantee for bank loans.

 Currently, the BSP’s CSFs exist in 46 provinces and cities with two more to be launched next week. As of April 30 2017, the total amount released through CSFs is P3.25 billion to 16,360 MSMEs.

 Republic Act 10744 aims to build the capability of MSMEs, cooperatives and non-government organizations in the areas of credit evaluation, loan and risk management, and good governance.

It also seeks to enhance the MSMEs’ credit worthiness and broaden access to credit facilities, and sustain the continuous flow of credit in the countryside.

“This will generate more employment and alleviate poverty through increased investments and economic activities,” Sen. Bam pointed out.