SEC Promotes Capital Market as Funding Source for MSMEs Through Nationwide Roadshow

The Securities and Exchange Commission (SEC) is promoting the use of the capital market as a source of funding for micro, small, and medium enterprises (MSMEs). The SEC’s nationwide roadshow on capital formation for MSMEs has already launched successfully in Davao last February 15 and will continue in Cebu City on March 17 at the Cebu Parklane International Hotel.

The roadshow aims to highlight the importance of the capital market, including crowdfunding platforms, in assisting small and medium enterprises in obtaining funds for business expansion. Crowdfunding is a fundraising method used by startups and SMEs, where the public can support a business idea by funding it through an online platform. The SEC regulates crowdfunding activities in the country, with the Rules and Regulations Governing Crowdfunding provided under SEC Memorandum Circular No. 14, Series of 2019.

According to the Crowdfunding Rules, SMEs no longer need to register securities with or secure approval from the SEC before soliciting investments from the public. SMEs need only to register with a crowdfunding intermediary, funding portal, or crowdfunding platform and present their business idea to secure funding from the public, subject to certain limitations.

The roadshow will feature representatives from crowdfunding intermediaries, Investree Philippines, SeedIn Technology, Inc., and Eastern Securities Development Corporations (Round One), who will provide consultation on how to use their platforms for MSMEs.

SEC Commissioner Karlo S. Bello will deliver the keynote speech for the Cebu roadshow, together with Markets and Securities Regulation Department Director Vicente Graciano Felizmenio, Jr. Other speakers include representatives from the Philippine Stock Exchange (PSE), Investment and Capital Corporation of the Philippines, the Philippine Chamber of Commerce and Industry (PCCI), and Cebu Landmasters, Inc.

The roadshow is part of the SEC’s Office for the Advancement of Strategic Investments in SMEs’ (OASIS) initiatives to promote the interests of SMEs by setting up viable alternatives in raising capital, simplifying the capital-raising products, streamlining the registration process, and encouraging houses and other financial institutions to implement SME-friendly advisory programs, among others.

The initiative is also part of the Commission’s 888@88 goal, under which the SEC targets to have at least 888 companies tap the capital market in time for its 88th anniversary in 2024.

After Cebu, the Commission will also bring the roadshow to Cagayan de Oro, Zamboanga, Bacolod, Legazpi, Iloilo, Tarlac, Baguio, the CALABARZON region, and Metro Manila. For more information and updates, visit the SEC website.