The City Council, during last Monday’s regular session, approved on first reading a proposed ordinance to put in place the Baguio City government assistance program for small and medium enterprises operating in the city.
Under the proposed ordinance, the local government will appropriate funds to provide financial assistance to Baguio-based entrepreneurs to be used solely for the promotion, growth, and development of SMEs operating in the city.
Further, the program shall apply to all eligible SMEs in the city that need whatever contributions that will guarantee their promotion and growth that will contribute in sustaining the upliftment of the local economy.
The ordinance stipulated that the funds to be used for the said program shall come from an annual appropriation of P2 million from the local government’s budget to be allocated under the City Social Welfare and Development Office (CSDWO) and the interests and charges that will be collected from the borrowers.
The annual appropriation of P2 million in the local government’s budget shall be for five consecutive years which will be used for the promotion, growth and development of Baguio-based SMEs.
The ordinance tasked the City Treasurer to open a separate account to maintain or manage the funds and shall submit to the local chief executive a quarterly report on the status of the said funds, provided that all existing government accounting and auditing rules and regulations shall govern the implementation of the program.
Among the policies and guidelines governing the implementation of the ordinance include the program shall be managed by a committee that will be created for the said purpose and provide whatever appropriate assistance to qualified SMEs applying to avail of the program.
The ordinance added that the CSWDO, in addition to its powers, duties and functions, shall help establish the needed environment and opportunities conducive to the growth and development of the SME sector; recommend to the local chief executive all policy matters affecting SMEs; formulate a comprehensive SME development plan for the city; coordinate and integrate various government and private sector activities relating to SME development; review existing policies of government agencies that would affect the growth and development of SMEs, including the procedures and requirements in the registration, financing and other activities relevant to SMEs; monitor and determine the progress of SMEs; recommend to the local chief executive implementing guidelines, programs and operating principles as may be deemed proper and necessary in the light of government policies on the promotion, growth and development of SMEs and promote the productivity and viability of SMEs
The council asserted that the promotion and development of SMEs has been provided under the pertinent provisions of Republic Act (RA) 6977 as amended by RA 8289 or the Magna Carta for Small Enterprises.
Further, it revealed that the advancement of SMEs which serve as the backbone of the economy will spell an economic boom for the city and will consequently result in employment generation and economic growth and can help provide a sufficient industrial foundation for the city. By Dexter A. See
