House Bill 6815, or the Accelerate Recovery and Investments Stimulus for the Economy (ARISE)

bill

House Bill 6815, otherwise known as the Accelerated Recovery and Investments Stimulus for the
Economy or ARISE, seeks to protect and assist over 15.7 million workers, create 3 million short-term
jobs and 1.5 million infrastructure jobs, and extend help up to 5.57 million micro, small and medium
enterprises. It was approved during its final reading last 4 June 2020 in the House of Representatives.
This bill aims to alleviate the economy and mitigate the effects of the pandemic on the heavily hit
sectors. 

Industries that will be benefited;

1. MSME who are directly hit with the Pandemic and in the brink of dying. MSMEs make up 90%
of our economy and ARISE is the only bill focused to help them get back on their feet.

2. Exporters will be able to recover.

3. Unemployment rate will be maintained or lower down

4. Students aid, and technical programs will help maintain competitiveness.

10 Good points of the Bill

1. Wage subsidy for maximum of 2 months to non-essential business with maximum monthly salary
of 15,000. All employees except senior and executive officers will be included in the
computation. The companies can avail of 50% to 75% of these salaries. The requirement to avail
of the subsidy is to retain the number of employees at least equivalent to 50%-75% of the original
payroll roll defending on the percentage of subsidy to be availed of.
Say the Company has 70 employees, 65 of whom are non-senior and executive officers,
minimum subsidy will be P487,500 per month up to P731,250.
Because of the retention policy of the Bill, un-employment rate will be maintained at a minimum.
2. Extension of Principal Loan Payments- to help restructure and extend period of loans pertaining
to principal amounts for those due between March 16, 2020 to December 31, 2020 for a period of
one year and may be further extended for a maximum period of another year.

This will help businesses to have some time to breath and recuperate loss before paying principal
loan amounts.

3. Simplify, shorten and rationalize new business registration, closure, licensing, permitting
processes for government agencies.

This will encourage additional job since new business will be created. This will lessen costs to
business for transactions to government.

4. Incentive for MSMEs that are compliant with law. BIR shall waive registration fee and other fees
for period of not more that 18 months.
 The motive of this attachment is to encourage business to apply good business practices, however
registration fee of P500 is not something that will compel business to act. Other fees are not
clearly stated in the bill.
5. Loans to MSME- for Companies that will maintain 75% - 100% of its employee up to 1 year after
the date of the Loan can avail. The Small Business Corporation shall provide a loan forgiveness
of 15% of the loanable amount.
The SBCorp will also
a. Increase availability of loanable funds
b. Reducing eligibility requirements such as waiver of collateral;
c. Increasing the maximum loan amounts per borrower
d. Reducing the interest rates
e. Extending loan terms
f. Utilizing financial technologies to expand reach and increase access; and
g. Committing a faster turnaround time of loan processing.
The Loan amount can be used for the following;
a. Payroll costs
b. Materials and supplies
c. Mortgage payments
d. Rent
e. Utilities including fuel and storage
f. Creation of new supportive businesses
g. Repurposing of existing business capital
h. Acquisition of new technologies and systems to adjust business processes; or
i. Any other business debt obligations incurred before the covered period

6. Interest Free loans available to non-essential business to assists and encourage them to continue
investing in their business. Loanable amount is equivalent to 100% of borrowers direct labor
costs for a period of 3 months. Loan payable 3-5 years.

7. The Bill will provide maximum of 2 months salary, P15,000 per month for OFWs that loss their
jobs.
8. To provide work for displaced workers, technical and vocational learners under TUPAD.
9. Educational Subsidy to students amounting to maximum of P7,500 per student.
10. Training and support to different business sectors.