Category Archives: Cooperatives

Grace Period for Loans: FAQ from BSP (Memorandum No. M-2020-018; full text)

[The Bangko Sentral ng Pilipinas (BSP) issued Memorandum No. M-2020-018 dated 6 April 2020 (“Frequently-Asked Questions  on the Implementing Rules and Regulations (IRR) on Section 4(aa) of Republic Act (R.A.) No. 11469, Otherwise Known as the “Bayanihan to Heal As One Act“). This clarifies some of the points discussed in our previous post. We are reproducing the full text of the BSP FAQs for educational purposes and to help in the dissemination of the information.]

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Grace Period for Rents (Residential and MSMEs) during the Enhanced Community Quarantine

The Department of Trade and Industry (DTI) released the guidelines on the concessions on residential rents, and commercial rents of Micro, Small and Medium Enterprises (MSMEs) that have ceased operations due to the Enhanced Community Quarantine (ECQ). Memorandum Circular No. 20-12 aims to provide Filipinos and businesses, particularly MSMEs, economic relief during the Coronavirus Disease 2019 (COVID-19) public health emergency.

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COVID 19 Pondo Para sa Pagbabago at Pag-Asenso Enterprise Rehabilitation Fund (P3-ERF)

The COVID 19 Pondo Para sa Pagbabago at Pag-Asenso Enterprise Rehabilitation Fund (P3-ERF) is a One Billion Peso (PhP1,000,000,000) special financing program by the Small Business Corporation of the Department of Trade in Industry (DTI) for MSMEs affected by COVID-19. This is part of the social amelioration programs (see list of Social Amelioration Programs) designed to mitigate the socio-economic impact of the Coronavirus Disease 2019 (COVID-19) health crisis during the Enhanced Community Quarantine (ECQ), pursuant to the Bayanihan to Heal as One Act (Republic Act No. 11469) and its Implementing Directives.  

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Price Freeze During COVID-19 Emergency: Joint Memorandum Circular No. 2020-01

[In a Joint Memorandum Circular, the Department of Trade and Industry (DTI), Department of Agriculture (DA) and Department of Health (DOH) reiterated the automatic price freeze of basic necessities from 16 March 2020 until 15 May 2020, unless sooner lifted by the President, as well as the intensification of monitoring and enforcement to prevent and control overpricing/profiteering, hoarding and cartel. Here is the full text of Joint Memorandum Circular No. 2020-01.]

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Grace Period for Loans Already in Effect: Implementing Rules and Regulations Issued by DOF

The grant of grace period for all loans, which is part of the emergency powers granted by Congress to the President, is now set for implementation. On 1 April 2020, the Department of Finance (DOF) issued the Implementing Rules and Regulations (IRR) of Section 4(aa) of Republic Act No. 11469, Otherwise Known as the “Bayanihan to Heal as One Act”. The salient points of the IRR are as follows: 

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Grace Period for Loans: Implementing Rules and Regulations of Section 4(aa) of the “Bayanihan to Heal as One Act”

[On 1 April 2020, the Department of Finance (DOF) issued the Implementing Rules and Regulations of Section 4 (aa) of Republic Act No. 11469, otherwise known as the “Bayanihan to Heal as One Act”. Refer to the extended discussion or the BSP FAQ. Note the important changes introduced by IATF Resolution No. 33. Here is the full text of the IRR.]

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Suspension of Rents and Loan Payments During the Covid-19 Lockdown

To help address the national crisis brought about by the Coronavirus Disease 2019 (COVID-19), Congress granted temporary emergency powers to the President, through the “Bayanihan to Heal As One Act” (Republic Act No. 11469). This law already took effect but not self-executory, which is why on 28 March 2020, the President, through the Executive Secretary, issued a directive to implement the emergency powers. Among the matters covered by the temporary emergency powers is the suspension of rent and loan payments. 

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How to Start/Register a Cooperative in the Philippines

As a juridical entity, a cooperative is similar to a corporation. However, while corporations are registered and supervised by the Securities and Exchange Commission (SEC), cooperatives are registered and supervised by the Cooperative Development Authority (CDA). This is pursuant to the Philippine Cooperative Code of 2008 (Republic Act No. 9520). [See also Introduction to cooperatives]

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