Filipinos will soon be able to use their personal properties, and not just land titles, as collateral for bank loans, according to Sen. Bam Aquino.

Sen. Bam said that President Duterte signed on Aug. 17 Republic Act 11057 or Personal Property Security Act, which he pushed in the Senate as principal author and co-sponsor.

With the law, Sen. Bam said micro, small and medium enterprises (MSMEs) will have better access to capital to grow their business since they’ll be allowed to use personal properties, like inventory and equipment, as collateral for loans.

“Sa batas na ito, mabibigyan na ang ating mga kababayan ng mas maraming paraan para makakuha ng pautang na maaari nilang gamitin para makapagsimula o di kaya’y magpalawak ng negosyo,” said Sen. Bam.

 “Sa tulong ng batas na ito, umaasa tayo na mas marami pang Pilipino ang makakapagsimula ng negosyo bilang pagkukunan ng ikabubuhay,” added Sen. Bam.

Usually, banks and other financial institutions prefer to immovable assets, like land, as collateral for loans. With this law, equipment, inventory, livestock, motor vehicles and receivables will now be accepted as collateral, creating a healthier loan environment for both MSMEs and banking institutions.

The law also provides safeguards to reduce the risk involved in accepting movable assets.

“This just one step towards inclusive finance in the Philippines. Tuloy pa rin ang aming pagtrabaho sa mga reporma para sa mga maliliit na negosyanteng Pilipino,” said Sen. Bam.

A known advocate of entrepreneurship and MSME development as a source of livelihood for poor Filipinos, Sen. Bam passed several laws to support the sector, including the Go Negosyo Act, Youth Entrepreneurship Act, Philippine Competition Act, Foreign Ships Co-Loading, Microfinance NGOs Act and the Credit Surety Fund Cooperative Act.

The Personal Property Security Act is Sen. Bam’s 27th law in his five years as senator.