The National Livelihood Support Fund (NLSF) evolved from the Kilusang Kabuhayan at Kaunlaran (KKK). The KKK was established as a priority program of the government by Executive Order No. 715 (EO 715) issued on 29 September 1981 by then President Ferdinand Marcos. The KKK was conceived as a nationwide movement to mobilize local resources for the establishment of viable productive enterprises that would provide sources of livelihood within the community. Eventually, an independent unit, the KKK National Secretariat, was created within the Ministry of Human Settlements (MHS) to execute the function of program secretariat.
Section 17 of EO 715 stipulated fund for the implementation of the KKK program and financing of KKK projects were to come from the National Livelihood Program Support Fund and other appropriated funds intended for the organization and operation of livelihood activities. It further specified that the financing of KKK projects be made available through the regular government and financial institutions participating in the KKK. The subsequent Letter of Instructions No. 1161 (LOI 116) issued in September 1981 authorized the release of KKK funds amounting to PESOS ONE BILLION PESOS (P1, 000,000,000.00) out of the budgetary reserves of the national government. This became known as the KKK CAPITAL FUND.
Based on a report made on the KKK on 28 February 1986, the national government infused a total of P1.8 billion of its funds into the lending stream in tranches from 1981-1985 for the program. As of December 1985, funds released to KKK-approved projects amounted to P1.47 billion while fund balances held by the conduit banks as of January 1986 totaled P212.4 million.
The authority of the President and/or the Pambansang Lupon over releases of the KKK funds was vested on the Annual General Appropriations Acts (GAA) from 1982-1986. By 1987, the GAA no longer provided appropriations for the KKK.
After the February 1986 revolution, President Corazon C. Aquino issued Executive Order No. 10 dated 26 March 1986, placing the offices, agencies and corporations attached to the MHS under the administrative supervision of the Office of the President.
Administrative Order No. 10 dated 12 January 1987 ordered the transfer of the KKK-National Secretariat functions, funds, records, assets and liabilities, including all its projects and programs to the Office of Development Management (ODM). When the ODM was abolished, its functions, together with the records and equipment of agencies formerly attached to it, were transferred to the Presidential Management Staff (PMS) as reorganized under Executive Order No. 130 dated 30 January 1987.
On 22 July 1987, by virtue of Executive Order No. 238 (EO 238), the KKK Capital Fund and its earnings were likewise placed under the control and supervision of the Office of the President. It directed all fund holders of KKK Capital Funds/ National Livelihood Support Fund to deliver to the Office of the President all or part of the funds held, including earnings, for consolidation. The Fund was also assigned to be "exclusively utilized for the promotion, generation and development of livelihood opportunities."
The KKK Secretariat was reorganized and Executive Order No. 314 dated 17 December 1987 was issued creating and constituting the Bagong Kilusang Kabuhayan at Kaunlaran (BKKK). Upon the issuance of Executive Order No. 327 on 9 June 1988, the name BKKK was subsumed under the National Livelihood Support Fund, or NLSF. It directed that the income of the KKK Capital Funds/NLSF, as consolidated, be maintained in an account of the BKKK-Office of the President with a trustee bank or trustee banks so designated.
In 1988, the Comprehensive Agrarian Reform Law or Republic Act No. 6657 (RA 6657) was passed. Section 37 of the law provided for the transfer and attachment of the BKKK Secretariat to the Land Bank of the Philippines including all its applicable and existing funds, personnel, properties, equipment and records. Although the transfer was presumably intended to primarily provide support services for agrarian reform beneficiaries (ARBs), nowhere in the law is the explicit provision which delimited or redefined the use of the funds as purely or solely for supporting agrarian reform. The purpose of the fund therefore remained to be as stated in EO 238 as to be "exclusively utilized for the promotion, generation and development of livelihood opportunities."
On 6 August 1993, Administrative Order No. 75 directed the transfer and attachment of the NLSF from the Office of the President to the Land Bank of Philippines (LBP). A subsequent Executive Order No. 75, dated 19 February 1999, reconstituted the Management Committee (MANCOM) supervising the NLSF. It is composed of the President of the LBP as Chairman, the Executive Director of the NLSF Secretariat as Vice-Chairman and representatives from the following as members:
• Office of the President
• Department of Agrarian Reform
• Department of Agriculture
• Department of Interior and Local Government
• People’s Credit and Finance Corporation
• Farmers Organizations
• Labor Sector