Tourism micro, small and medium enterprises (MSMEs) affected by the new coronavirus disease 2019 (COVID-19) may now avail of zero interest, no collateral loan from the SB Corp.
The Department of Tourism (DOT) and the SB Corp. on Monday signed a memorandum of agreement (MOA) for the Tourism Rehabilitation and Vitalization of Enterprises and Livelihood ( TRAVEL) component of the COVID-19 Assistance to Restart Enterprises (CARES) program.
The MOA seeks to disburse P6 billion worth of loans to tourism MSMEs, using the P10-billion CARES budget under the Bayanihan to Recover As One Act.
Through the DOT and SB Corp’s CARES for TRAVEL program, tourism MSMEs can repay their loans for up to four years, including a corresponding grace period of up to one year.
The borrower MSMEs will only need to pay a one-time service fee, which is set at a maximum of 8 percent for the loan.
The DOT will regularly endorse to SB Corp a list of DOT-accredited tourism enterprises and local government unit-accredited small-scale tourism-oriented enterprises that may be entitled to avail of business loans under the CARES for TRAVEL Program, subject to further evaluation by SB Corp.
SB Corp. will regularly submit loan implementation reports to the DOT subject to compliance with Republic Act No. 10173 or the Data Privacy Act of 2012. (I.Isip)