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Philippines: Govt eases loan terms for tourism businesses
The government recently relaxed the loan terms for tourism businesses to encourage more micro, small and medium enterprises to avail of the loan program.
In a statement, the Department of Tourism (DoT) said that under the relaxed terms of the Coronavirus disease 2019 (Covid-19) Assistance to Restart Enterprises (Cares) for Travel program, the grace period for repayment of loans to distressed tourism enterprises was extended to two years.
The DoT added it hopes more micro, small and medium enterprises (MSMEs) in the tourism industry will avail of the loan facility managed by the Small Business Corp. (SB Corp) of the Department of Trade and Industry (DTI).
The government also allows for a second round of loans for employee retention and a maximum loanable amount of P5 million.
Tourism Secretary Berna Romulo-Puyat urged more tourism businesses to take advantage of the loan to help them recover from the pandemic.
“We thank DTI Secretary Ramon Lopez and the SB Corp. for making these necessary adjustments to help tourism businesses thrive amid this global health crisis. While we see the vaccination of tourism workers as the light at the end of the tunnel for the industry, we also know that tourism businesses still badly need the government’s support to get by in the coming months as we wait for vaccine doses to arrive,” Puyat said.
SB Corp. in a recent letter to the Tourism Congress of the Philippines (TCP) said it approved the extension of the grace period for loan payments from one to two years for tourism MSMEs accredited by the DOT or registered by the Barangay Micro Business Enterprises (BMBE).
It also increased the loanable amount relative to the enterprise’s financial details.
Under the amended guidelines, the loan amount shall not exceed 15 percent of annual sales of the business or 20 percent of asset size, whichever is higher – not lower as previously required by SB Corp.
The figures will be based on the financial statements for 2018 or 2019 filed with the Bureau of Internal Revenue.
The maximum loanable amount for applicants with financial statements filed with the Bureau of Internal Revenue (BIR) remains at P5 million for medium enterprises, P3 million for small enterprises, and P300,000 for micro enterprises.
Businesses with existing loans under the Bayanihan Cares program may also reapply for a second round of loan for employee retention, provided that the applicants with existing loans under the program will not exceed the maximum loanable amount and that their BIR-filed financial statements support a higher loan amount.
Trade Secretary Ramon Lopez earlier disclosed that out of the P6 billion allocated for the Cares for Travel program, the government has so far approved loans amounting to only P185 million.
“Cares for Travel [is] just starting to pick up as we are reopening more tourism activities,” said Lopez.
Source: https://www.manilatimes.net/2021/06/14/business/top-business/govt-eases-loan-terms-for-tourism-businesses/1803131