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Thursday, March 23, 2017

PROPOSAL ON BARANGAY LIVELIHOOD CENTER

 PROPOSAL ON BARANGAY LIVELIHOOD CENTER
(Sentrong Pangkabuhayan sa Barangay)

A. BACKGROUND

            Unemployment is one of the major concerns of local government units. Over the years, the fast rising increased in population have created poverty everywhere most especially in the depressed area. Non Government Organization, Peoples Organization, through the help of financial institutions and expert in sustainable development often tried to initiate livelihood projects and programs but only small percentage succeeded. Mostly, the cause of failure of projects and programs was the marketing aspect. They taught how to do and produce but they disregarded the concept of

how and where to sell the produced products.

            Various government units, agencies, civic and business organizations have continued initiated steps to solve the ever-growing problems of accumulation. However, they can do only so much in solving the problem due to their own limitations and the people who only take advantage of what they can get simply but not for long term gain.

            With the new program of the City Government of Malolos or upon implementation of Barangay Livelihood Center, instead of operating as suppliers to the public of particular goods and services they requested, the government will do the function as facilitator and coordinator. The initiated livelihood programs/projects will be funded by capitalists who equally share with the role of other lead agencies to begin with group organizing, training, funding, marketing and management.

B. OBJECTIVES

  1. To respond to a constituency group-defined claim on resources, not in response to their demands.
  2. To create consistent service delivery systems.
  3. To harness the manpower, talents and resources of the community.
  4. To promote the establishment and operation of viable business enterprises in every barangay.
  5. To eliminate the problem of unemployment.
  6. Supplement the government efforts in sustainable economic development.

C. CONCEPTUAL FRAMEWORK

THE ENTREPRENEURS

            The Barangay Livelihood Center is an innovative scheme for partnership to promote community participation and empowerment. A participatory approach of the formed group or organization to the barangay government to city level to capitalist, with their complementary nature of services, shall serve as the main mechanism of this effort. To become beneficiaries, the unemployed residents of the barangay shall form a group of not less than 20 members. This group will be called as “ENTREPRENEURS”. The members of the group shall be encouraged to adopt the spirit of entrepreneurship values.

THE BARANGAY GOVERNMENT

            The barangay government headed by the Punong Barangay shall select and evaluate the members of entrepreneurs. Through evaluation and in coordination with the entrepreneurs, the PB or his/her duly authorized representative shall determine the type of livelihood program or project to be implemented. The PB shall be the Program Director/Manager and his/her office will be the temporary “coordinating center” of the program/project.

THE CITY GOVERNMENT OF MALOLOS

            The city level or the City Government shall be the facilitator and coordinator of the program. The city government will provide all the technical support which includes stages of planning, organizing, trainings, introductory implementation and management, and assistance in marketing. (SCHEME B. AS GUARANTOR IF THE BARANGAY DID NOT MEET THE REQUIREMENTS. UPON APPROVAL OF THE CITY MAYOR)

THE CAPITALIST (DBP)

            The capitalist or source of fund shall provide the funds needed by the program beneficiaries (barangay). It shall establish the policy of granting the programs and projects to be funded, the mode of payment or payment scheme. It shall also establish the central marketing together with the city government of all the products produced by the livelihood centers.

            There shall be a continuous public information services and regular visitation on the centers and regular community education in entrepreneurship and sustainable development by the appropriate government offices serve as lead agencies of the program.

            Essential to this plan are: appropriate support and access to technology and information; supportive partnership policies and government leadership; and supplementary research and development activities.

D. IMPLEMENTATION SCHEME

            The success of Barangay Livelihood Center will; depend on strong partnership, large extent of necessary support , assistance and coordination of lead agencies and beneficiaries especially during the initial phase of implementation.

            The supports may come in the form of appropriate policies, Executive Order from local executive, Memorandum of Agreement by and between agencies involved in the program including the beneficiaries, community active and serious participation and initiative. Business sector and NGO assistance will also be necessary in the provision of support through technical expertise, research and development activities to continuously improve the technologies and processes for the efficient implementation of the program.

PHASE 1

  1. Awareness on the situation and problems of every barangay and data gathering – City Social Welfare and Development Office
  2. Planning, promotion, assessment and prioritization – CA and MTEC
  3. Selection and consultation – CA and CMO
  4. Coordination and organizing – CA, MTEC, CSWDO
  5. Mobilizing and training - MTEC
  6. Orientation on funding provision – DBP, CA and MTEC
  7. Preparation and implementation - MTEC
  8. Permit application and registration – Barangay Level
  9. Assessment on the operation – MTEC and CA
  10. Continuing information campaign on the community – Barangay Level
  11. Product promotion and marketing – All Agencies

PHASE 2

  1. Management analysis – MTEC and DBP
  2. Recruitment of employee – Barangay Level
  3. Expansion to group level – CA and CMO

PHASE 3

  1. Establishment and operation of program in other barangay (Phase 1 cycle)

E. ORGANIZATION AND MANAGEMENT

            The formed group/organization in selected barangays together with the barangay government will manage the Barangay Livelihood Center. It shall be maintained and capitalized by the members elected Project/Program Manager and Board of Director who will be in charge in registering and applying the organization with Securities and Exchange Commission, DTI and to LGU concern for permit application. The elected officers will manage all the affair of the center in a business like manner in accordance with their member’s common purpose of keeping their business in continuous successes.

            The Board of Directors shall promulgate policies and regulations of the center. The Board will appoint other officers to be responsible for the different roles and functions in the operation and maintenance for the daily operation of the business.

F. FINANCIAL

            The capitalist or agency who provides the funding of the center with the approval of local chief executive shall determine the required amount needed for the operation of livelihood program. The criteria will be base on the recommendation of agency concern upon assessment and prepared plan for the center’s operation. Maximum of P400,000.00 will be provided by the capitalist/financier to every center and it will be granted upon submission of necessary documents required for loan application or depends on the eligibility of borrowers. (payment scheme and mode of payment shall be scheduled based on the cash flow and projected recovery of investment):

1) Lending Facility/Purpose Term Loan/LGU Re-lending scheme to MSMEs
2) Creditor Barangays of Malolos
3) Loanable Amount Based on 20% debt services ceiling of the LGU/ Barangay (OR BASE ON THE CAP TO BE PRO- VIDED BY CGM)
4) Tenor Based on the cash flow. Up to maximum of Five (5) years (PROPOSAL)
6) Major Documents a) Sangguniang Barangay Resolution authorizing the Brgy. Chairman to negotiate and sign document on behalf of LGU and BLC project approval;
b) Statement of IRA (3 years) duly certified by the Treasurer;
c) COA-audited Financial Statement for the last 3 years and latest available Interim Financial State- ment;
d) Socio-economic profile of the LGU;
e) BLC project proposal;
Certification from the Bureau of Local Gov’t Finance, Department of Finance (DOF-BLGF) on The LGUs debt services ceiling for the current yr.
7) Conditions Transfer/assignment of IRA in favor of the bank.

NOTE: 3 years Tentative Amortization Schedule (attached) up to P500,000.00

G. PILOT BARANGAYS

            Pilot barangays shall be selected base on population with the highest percentage of unemployed and highest number of Out-of-School Youth (OSY).

H. COMPOSITION, FUNCTIONS AND RESPONSIBILITIES OF LEAD AGENCIES

The Barangay and the Entrepreneurs

  1. Program Director/Manager – the Punong Barangay or his/her duly authorized representative will be the Program Director/Manager of the Center. He/she shall serve as the over-all coordinator of the center with the following functions and responsibilities:
    1. Determination and consolidation of the group or groups in the barangay as beneficiary of Barangay Livelihood Center (BLC) project/program;
    2. Provision of all data needed by coordinating offices/agencies;
    3. Information dissemination campaign to all constituents (awareness);
    4. Coordination with the lead agencies and offices with regards to proj./prog.;
    5. Business permit application and registration;
    6. Recruitment of members;
    7. Assists in marketing
  2. The members of the entrepreneurs elected as member of the Board of Director (BOD) has the main responsibility of making necessary policies and regulations to guide the management and operations of the BLC. The members of the Board are authorized and responsible to appoint other officers of the center.
  3. BLC Management – is the working staff of the center appointed by the BOD. The staff or personnel are generally hired with an appropriate compensation and perform the day-to-day task by which the BOD will convey. However, some officials may also be appointed or be authorized to perform some operational tasks for the management of the BLC.

The City Government of Malolos (City Mayor’s Office, City Administrator’s Office, CSWDO and MTEC

  1. Awareness on the situation and problems of every barangay and data gathering – City Social Welfare and Development Office
  2. Planning, promotion, assessment and prioritization – CA and MTEC
  3. Selection and consultation – CA and CMO
  4. Coordination and organizing (funding provision, barangay level, project selection, packaging etc.) – CA, MTEC, CSWDO
  5. Mobilizing and training - MTEC
  6. Orientation on funding provision – DBP, CA and MTEC
  7. Preparation and implementation - MTEC
  8. Assessment on the operation – MTEC and CA
  9. Product promotion and marketing – All Agencies
  10. Management analysis – MTEC and DBP
  11. Expansion to group level – CA and CMO
  12. Establishment and operation of program in other barangay (Phase 1 cycle)

The Capitalist (Development Bank of the Philippines)

  1. Orientation on funding provision
  2. Funding the program/project
  3. Product promotion and marketing
  4. Assists in the mobilization and training
  5. Submits recommendations

            The Barangay Livelihood Center is a democratic organization, established to operate and maintain to serve as solution to the community’s economic and social need or problem. The success of the center depends on the active and serious participation of all stakeholders especially the beneficiaries and members in the management and through the quality of products produced, continuous patronage will be a big factor.

I. QUALIFICATION OF APPLICANTS (As BLC entrepreneur)

    1. One Family, One member policy
    2. Must be of legal age
    3. No permanent job or regular income
    4. Resident with good standing
    5. Willing to work temporarily as “volunteer”
    6. Shall follow all the policies and submits all the necessary requirements needed.

J. GROUP REQUIREMENTS/MAJOR DOCUMENTS (Letter F, No. 6)

K. SCHEME B (NON-BARANGAY SUPPORT PROJECT)

RETAIL LENDING FOR MICRO AND SMALL ENTERPRISES

  1. ELIGIBLE BORROWERS
    • Single Proprietorship
    • Partnership
    • Corporation
    • Cooperative
    • Other entities with legal personality to engage in a business enterprise
  2. TYPE OF LOAN
    1. Franchise
      • Busines Profile of Franchisor
      • Photocopy of Franchise Agreement
      • Endorsement by Franchisor
      • Franchise Package Kit
    2. Term Loan (Start-up)
      • Business Plan
      • Statement of Assets, Liabilities and Networth of Principal Borrowers
      • Bank Statement for at least three (3) months
      • Business Evaluation Form
    3. Term Loan (Existing)
      • Financial Statement for the past three (3) years
      • Business Plan
      • Business Evaluation Form
    4. Dealership
      • Photocopy of documents submitted to the mother company
      • Dealership contract
      • Letter of endorsement from mother company/supplier
    5. Credit Line
      • Bank Statement for at least three (3) months
      • Projected cash flow
      • Projected Income Statement
    6. Purchase Order (PO)/Letter of Credit (LC) Financing
      • Projected Cash Flow
      • Projected Income Statement
      • Copy of Irrevocable LC/PO
  3. GENERAL REQUIREMENTS
    1. Application Form
    2. Business Registration (DTI/SEC/CDA/DOLE)
    3. Business Permit (from LGU)
    4. Confidential Information Report Sheet (DBP Form)
    5. Authorization to Conduct Inquiries and Verification (DBP Form)
    6. Two (2) pieces 2x2 pictures of the Borrowers
    7. Income Tax Return (if available)
    8. Bio-Data of the Borrowers
    9. Copy of any valid I.D. (2 pieces)
  4. ADDITIONAL REQUIREMENTS (IF NECESSARY)
    1. Real Estate Collateral
      • Two (2) copies of Sketch/Location Map
      • Two (2) copies of TCT/OCT, Certified True Copy of the Registry of Deeds
      • Updated Real Property Tax Receipt, Tax Declaration and Tax Clearance
    2. Chattel Collateral
      • Affidavit of Ownership
      • Certification of Non-Encumbrance with specifications
      • Copy of OR/CR for transportation equipment
  5. PROCESS
    1. Form a group of not less than 15 members
    2. Prepare project proposal
    3. Prepare letter of intent address to the City Mayor together with the copy of prepared project proposal
    4. Prepare the necessary requirements individually and as a group
    5. Wait for the approval of project proposal
    6. Implementation of the program/project

For information and approval.

Prepared by:

ARIEL B. SANTIAGO
Employee, OCA


Revised and recommended by:

ATTY. RIZALDY L. MENDOZA
City Administrator


Approved by:

HON. ATTY. CHRISTIAN D. NATIVIDAD
City Mayor