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Metro Manila (CNN Philippines, October 12) – The Department of Tourism (DOT) and the Small Business Corporation (SB Corp.) signed a memorandum of understanding Monday for a ₱ 6 billion program that will extend credit assistance to tourism businesses.
Under the “CARES for Tourism Rehabilitation and Vitalization of Businesses and Livelihoods (TRAVEL)” program, micro, small and medium-sized enterprises in the tourism industry will have access to interest-free and collateral-free loans, DOT said.
The loan term is up to four years, including a grace period of up to one year.
According to the department, companies that borrow money will only have to pay a one-time service fee, which is set at a maximum of eight percent for a four-year loan.
Tourism Secretary Bernadette Romulo-Puyat said DOT is hopeful this initiative will help accelerate the recovery of the country’s tourism industry, crippled by the COVID-19 crisis.
“In addition to rescaling, restarting and doing some kind of pivot of the entire industry, we also recognize the need for tourism MSMEs to have access to financial assistance or funds just to overcome the current pandemic crisis,” he said.
“By working together, we can return tourism, an industry that contributed 12.7% of the country’s GDP in 2019, to its glory days,” added Puyat.
All DOT-accredited MSME loan applications and local government units will be reviewed and processed by SB Corp., which will also decide the amount and terms of the loan.
Funds for credit assistance will be obtained from the budget allocated to SB Corp’s CARES program under the Bayanihan 2 Act.
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