The Senate on Monday, May 28, passed on third and final reading a bill improving the access of micro, small, and medium enterprises (MSMEs) to loans.
Senate Bill No. 1459 or the proposed Personal Property Security Act was approved with 21 affirmative votes, zero negative vote, and no abstention.
Under the bill, MSMEs will be allowed to use other properties, such as inventory and equipment, as collateral for loans. Under the present system, banks and other financial institutions prefer immovable assets like land. — Camille A. Aguinaldo