Section 2December 14, 1989, Sec./Art. 2

This Act shall be known and cited as the "Magna Carta for Countryside and Barangay Business Enterprises (Kalakalan 20)."

As used in this Act, the term "countryside and barangay business enterprises," hereinafter referred to as the CBBE (Kalakalan 20), shall mean any business entity, association or cooperative registered under the provisions of this Act whose:

(a) Number of employees does not exceed twenty (20) at any time for the purpose of undertaking a productive business enterprise recommended by the Department of Trade and Industry (DTI) provincial office that will help develop the economy in its area.

For this purpose, the term "productive business enterprise" shall not apply to business enterprises engaged principally in any of the following activities, namely: professional services, retailing, wholesaling or trading of commodities, products or merchandise;

(b) Assets, at the time of registration as CBBE, do not exceed Five hundred thousand pesos (P500,000.00) before financing; and

(c) Principal office and location of business operations are located in the countryside as defined in the implementing rules and regulations issued by the Secretary of Trade and Industry.