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July 1, 1986




TO                :     Assistant Secretary for Finance and Management, Assistant Secretary
                           for Education and Training, Bureau Directors, Service Chiefs, Regional
                           Directors, District Officers, Team Leaders, Project Coordinators, Agrarian
                           Reform Technologist and All Others Concerned

SUBJECT    :     Amendment to the Standard Operating Procedures on MAR Loan Assistance for
                           Income-Generating Activities for Rural Women, Students and Out-of-School
                           Youth Within the Settlement Projects and Landed Estates: Increasing the
                           Loan Assistance to P3,000 and Further Simplifying the Procedures


The attached Standard Operating Procedures on Loan Assistance for Income-Generating Projects for Rural Women, Students and Out-of-School Youth within the Settlement Projects and Landed Estates are hereby provided to be followed in the organization and training of rural women, students and out-of-school youth and in the management of the loan assistance fund.

For compliance.   cITCAa

This Circular takes effect July 1, 1986.






To uplift the standard of living in the settlement projects and landed estates by assisting the rural women, student and out-of-school youth by establishing income-generating projects through the loan assistance program of the Ministry of Agrarian Reform.   DACIHc


1.         Loan assistance of not more than P3,000.00 may be extended to a pre-cooperative group of rural women, students and out-of-school youth with the settlement projects and landed estates of the Ministry of Agrarian Reform for use in establishing an income-generating project.

2.         Each pre-cooperative group shall be composed of not less than five (5) but not more than ten (10) members.

3.         The projects shall be funded from the loan assistance fund appropriated for this purpose.

4.         The Regional Director shall be responsible in the overall supervision of all projects in the region, while the Action Officer, preferably an Agrarian Reform Technologist designated by the Team Leader, shall be primarily responsible for the projects.

5.         Loan assistance extended to a pre-cooperative group shall be repaid over a period of eighteen (18) months and shall be amortized within one year starting on the 7th month after the granting of the loan. However, the group may pay in full prior to the maturity of the loan.



A.        Organization of pre-cooperative group


1.         The Action-Officer shall organize a pre-cooperative group with common interest.

2.         The group shall elect from among the members its officers consisting of a President, Vice-President, Secretary-Treasurer, Business Manager and Auditor.

3.         The Action Officer shall coordinate with the Municipal Development Officer for the pre-cooperative training.

4.         The Action Officer shall coordinate with the local office concerned for training on the appropriate technology needed (e.g., for piggery — Bureau of Animal Industry).


B.         Operational Procedure


1.         The Pre-Cooperative Group, with assistance of the Action Officer, shall submit a Project with the following supporting documents:

a.         A simple project study using the attached form. (See attached Form No. 1)

b.         Promissory Note duly signed by all members of the group and attested by the Action Officer. (See attached Form No. 2)

c.         Certification of the Municipal Development Officer that the members of the group have completed the pre-cooperative training. (See attached Form No. 3)   aTCAcI

2.         The Project document shall be prepared where in five (5) copies to be distributed as follows:

Original — to be attached to the proposal

Duplicate — file of the Monitoring and Evaluation Committee (Central Office)

Triplicate — file of the Regional Project Coordinator

Quadruplicate — file of the Team Office

Quintuplicate — file of the pre-cooperative group

3.         The proposal shall be submitted to the Team Leader for review and endorsement to the Regional Director. The District Officer shall be furnished a copy of the endorsement only.

4.         After the proposal has been indexed and recorded, the Regional Director shall endorse the same to the Minister, thru the Assistant Secretary for Education and Training.

The Regional Project Coordinator, designated by the Regional Director, shall be responsible in recording and monitoring the activities of the different pre-cooperative groups in the region.

5.         The Assistant Secretary for Education and Training shall prepare a Memorandum to the Minister recommending the approval of the project proposal and the release of fund, to be signed by the following:

a.         Recommending the approval of the project proposal:

1.         The Director, Bureau of Resettlement

2.         The Assistant Secretary for Education and Training

b.         Recommending approval of the release of fund:

1.         The Chief, Planning Service

2.         The Assistant Secretary for Finance and Management

6.         Upon approval by the Minister, the corresponding Allotment Advice (ALAD) with Cash Disbursement Ceiling (CDC) shall be sent to the Regional Director who shall sub-allot the fund to the Team Office, copy furnished the District Office. The Team shall release the check to the President of the Pre-Cooperative group.

7.         The Action Officer shall assist the group in the proper management or implementation of the project, including the pre-cooperative training.

8.         The Team Office Bill Collector or designated Collecting Officer shall issue official receipts in the name of the President of the group for amortizations made by the group, and deposit the amount collected in the authorized depository bank of the Ministry's funds.   EHTADa

The usual procedure on repayment and reporting shall be allowed.

9.         For failure to pay the loan amortization after the due date (18th month), the group shall forfeit the right to renew their loan and the whole amount — the balance of the loan, shall become due and demandable with 6% interest per annum.

10.       The Monitoring and Evaluation Team of the Planning Service shall monitor and evaluate at least every six months the operations of the projects and repayment of the loans granted for better project management and policy improvement


1.         The Action Officer shall prepare and submit project initiation form at the start of the implementation of the project (See attached Form No. 4)

2.         The Action Officer shall prepare a quarterly status report of the projects, noted by the Team Leader, to be submitted to the Regional Project Coordinator. (See attached Form No. 5).

3.         The Regional Project Coordinator shall consolidate all reports of the Action Officer and submit to the Minister, endorsed by the Regional Director and copy furnished the Monitoring and Evaluation Team.

4.         The Monitoring and Evaluation Team, thru the Assistant Secretary for Education and Training, shall submit to the Minister a consolidated annual report of all the assisted projects.

This STANDARD OPERATING PROCEDURES amends Memorandum-Circular No. 2, Series of 1983.   EHaDIC

APPROVED, 29 July 1986, Diliman, Quezon City.




Department of Agrarian Reform
Elliptical Road, Diliman
Quezon City, Philippines
Tel. No.: (632) 928-7031 to 39

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