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must be owned by Filipino citizens;
c) a business activity within the major sectors of the economy, namely:
industry, trade, services, including the practice of one's profession, the
operation of tourism-related establishments, and agri-business, which
for the purposes of this Act refers to any business activity involving the
manufacturing, processing, and/or production of agricultural produce.
Business activities involving fisheries, aquatic resources and other related
industries shall likewise be covered by this Act.
d) a business activity as provided in Section 3 of this Rule which is not
a branch, subsidiary or division of a large scale enterprise.
However, this requirement shall not preclude MSMEs from accepting
subcontracts and entering into franchise partnership with large enterprises
or from joining in cooperative activities with other MSMEs.
Sec. 2. Coverage of Small Business Corporation (SB Corporation). Programs
of the Small Business Corporation (SB Corporation) as provided in subsequent
provisions of this Act shall be exclusively delivered and directed to bonafide
MSMEs. The SB Corporation shall make known through all its offices and
partner organizations its current programs pertaining to bonafide MSMEs.
Sec. 3. Disqualification of MSMEs as Beneficiaries under RA 6977, as
amended. Any MSME, its directors, officers or agents, found to have committed
fraud or misrepresentation for the purpose of availing the benefits under this
Act shall be immediately disqualified as a beneficiary, without prejudice to
any administrative, criminal or civil liability under existing laws.
Sec. 4. Share of MSMEs in Government Procurement. Eligible MSMEs
shall be entitled to a share of at least ten percent (10%) of total procurement
value of goods and services supplied to the Government, its bureaus, offices
and agencies annually.
Sec. 5. Monitoring on Required Government Procurement. The Department
of Budget and Management shall monitor the compliance of government
agencies on the required procurement for MSMEs, as provided for in Sec. 4
of this Rule, and submit its report to the MSMEDC on a semestral basis, and
to the Congress of the Philippines, through its appropriate committees on a
yearly basis.