The Small Business Corp. said more financing and technical assistance will be extended to micro, small and medium enterprises in compliance with the amended Magna Carta for Small Enterprises.

The amendment, approved by the bicameral conference committee, raises the mandatory allocation of credit resources of all lending institutions for MSMEs from eight to 10 percent, SBC president Benel Lagua said in a statement.

This will greatly boost the sector especially the micro firms, as it abolished alternative compliance schemes resorted to by most private banks in lieu of lending to tiny firms, he said.

MSMEs comprise over 99 percent of Philippine companies and exporters and provide 80 percent of employment yet, do not have access to financing from most banks.

There are about 800,000 MSMEs in the country, which are mostly non-clients of the banking sector.

The amendments introduced adjusted the category of MSMEs, thus ensuring more companies to benefit from more financial backing and other assistance.

Micro companies are those with total assets worth not more than P3 million from the previous threshold amount of P1.5 million.*

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