Parañaque City 2nd district Rep. Brian Raymund Yamsuan is pursuing a measure that would help spare businesses from having to avail of abusing money-lending schemes for their capital needs.

Yamsuan said such schemes--referred to locally as "five-six"--do nothing but ensnare hapless entrepreneurs in a debt cycle trap.

To save micro and small enterprises (MSEs) from this nefarious practice, he filed House Bill (HB) No. 9472 or the proposed Pondo sa Pagbabago at Pag-asenso (P3) Act.

He says the bill seeks to institutionalize the P3, which is designed to provide MSEs the means to easily access capital with fair, easy-to-pay terms. It is a microfinancing program currently being implemented by the Department of Trade and Industry (DTI) through the Small Business Corp. (SBCorp). 

“Taong 2026 na, may ‘five-six’ pa rin na ngayon ay may online na at mas abusado pa (It’s now 2026 but ‘five-six’ lending is still around and they have gone online and are even more abusive)," noted Yamsuan, a former Department of the Interior and Local Government (DILG) assistant secretary.

"Institutionalizing the P3 program will free MSEs from this vicious cycle and open opportunities for them to sustain and expand their businesses,” he said.

"Five-six" lenders usually charge an interest rate of 20 percent per month. This means that if one borrows P5, one will have to pay back P6, hence the term five-six.

Yamsuan warns Filipinos that this no-collateral tactic employed by predatory lenders also comes with hidden charges. Unregistered, illegal online lenders have been flagged not only for their exorbitant interest rates, but also for abusive collection practices.  

MSEs often resort to the “five-six” scheme because of the difficulty of securing financing from banks, which demand collateral and stringent requirements.  

The measure aims to benefit sari-sari store owners, market vendors, carinderia operators and other community-based entrepreneurs. 

In further justifying the measure, Yamsuan noted that funding for the P3 under the national budget has fluctuated over the years. The program was allocated P2 billion in 2022, P750 million in 2023, and P1 billion in 2024.

This dropped to  P500 million in 2025, and was increased anew to P1 billion in 2026. 

“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,” explained the Metro Manila solon.

HB No. 9472 provides for the creation of the P3 Fund, which shall be lent out to qualified MSEs without collateral and with interest rates of not more than 1 percent per month for direct lending and not exceeding 2.5 percent for lending through accredited partner financial institutions (PFIs). Interest earnings shall accrue to the Fund.

The SBCorp’s usual loanable amounts under the P3 range from P5,000 to P300,000.

As implementing agency, the SBCorp. is mandated under the bill to prioritize lending to underserved and unserved areas, and MSE segments of the country, subject to the review and approval of the Micro, Small and Medium Enterprise Development (MSMED) Council.  

Yamsuan said the measure also encourages the use of financial-technology (fintech) enabled systems and processes to expand the reach of the P3 program to all provinces and 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,” he said. 

“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,” Yamsuan said. 

He pointed out that the bill would benefit more than 90 percent of enterprises classified as micro businesses and about 9 percent classified as small enterprises.