Parañaque City 2nd District Representative Brian Yamsuan has introduced House Bill (HB) No. 9472, a legislative measure designed to protect local entrepreneurs from exploitative informal lending practices.
Dubbed the Pondo sa Pagbabago at Pag-asenso (P3) Act, the bill looks to establish a permanent and fair capital alternative for micro and small enterprises (MSEs).
The proposed legislation seeks to institutionalize the existing P3 microfinancing program, which is currently administered by the Small Business Corporation (SBCorp) under the Department of Trade and Industry.
Yamsuan, who previously served as an assistant secretary for the DILG, pointed out that predatory lending has evolved dangerously alongside technological advancements.
“Taong 2026 na, may ‘five-six’ pa rin na ngayon ay may online na at mas abusado pa,” Yamsuan noted. “Institutionalizing the P3 program will free MSEs from this vicious cycle and open opportunities for them to sustain and expand their businesses.”
Conventional “five-six” operations generally demand a 20% interest rate per month, meaning a borrower pays back ₱6 for every ₱5 loaned.
Yamsuan cautioned that despite being advertised as convenient “no-collateral” options, these illegal outfits trap vulnerable entrepreneurs—such as public market vendors and sari-sari store owners—through exorbitant hidden charges and aggressive collection practices. These small merchants often feel compelled to use such schemes due to the strict paperwork and collateral demands of mainstream banks.
To combat this, Yamsuan emphasized that the P3 initiative requires a stable, institutionalized funding mechanism rather than remaining vulnerable to annual national budget fluctuations, which have historically swung between ₱500 million and ₱2 billion.
“In the implementation of livelihood programs in our district, I saw how a modest amount can spell the difference between a business that closes its doors and one that thrives and expands. This is why the P3 program is a landmark initiative that deserves yearly funding and prioritization, and should not be bound to annual budgetary whims and the shifting priorities of any administration,” he explained.
If passed, HB No. 9472 will create a dedicated P3 Fund offering unsecured loans with interest rates capped at 1% for direct loans and 2.5% when distributed through partner financial channels.
The bill mandates SBCorp to target economically marginalized areas and deploy financial technology to expand its reach to distant barangays.
“Our goal is not only to further promote entrepreneurship, but to establish trust in our formal financing institutions. Ultimately, livelihood is about transforming the daily struggle for survival into an opportunity for financial stability,” Yamsuan said.
Highlighting the macroeconomic importance of safeguarding the sector, Yamsuan stressed that small businesses comprise the majority of commercial entities in the Philippines.
“Providing steady funding for the P3 will give our micro and small entrepreneurs, who form the backbone of our local economies, hope and a fighting chance for a better future for themselves and their families.”