Aquino urges rural banks to expand MSME services

Senator Paolo Benigno ‘Bam’ Aquino IV is urging rural banks to expand their services to more small businesses, saying many local entrepreneurs still need access to reasonable loan packages that can help them grow their business.

Aquino said that during his time as a social entrepreneur, he learned that lack of financing poses a big challenge for micro, small and medium enterprises as it hampers their development.

Thus, when he became a senator, he focused on policies that can help support the MSMEs in the Philippines.

Among these policies, he said is finding ways to link MSMEs to financial institutions, including rural banks, to help their search for fresh capital to start or expand their businesses.

In his four years as senator, Aquino worked for the passage of Republic Act 10644 or the Go Negosyo Act, the first of his 19 laws as legislator.

The law mandates the establishment of Negosyo Centers in every town, city, municipality, and province of the country to serve as support hubs for entrepreneurs.

To date, there are over 600 Negosyo Centers across the country that link MSMEs to suppliers and markets, providing training and support and connecting them to sources of capital and financing.

As its principal sponsor and co-author, Aquino also pushed for the enactment of Republic Act 10679 or the Youth Entrepreneurship Act, which mandates the inclusion of financial literacy and entrepreneurial trainings in basic education.

"This will help groom young Filipinos to be responsible with their money and savings," said Aquino in a statement.

Aquino also passed other laws in support of MSMEs, such as the Philippine Competition Act, Foreign Ships Co-Loading, Microfinance NGOs Act and the Credit Surety Fund Cooperative Act.

In the 17th Congress, Aquino has filed the Philippine Islamic Financing Act, National Payment Systems Act and the Secured Transactions Act, measures that will help enhance the credit-worthiness and bankability of Filipinos, particularly small business owners.

Mitchelle L. Palaubsanon