Government eases loan conditions for tourism businesses
The government recently relaxed lending conditions for tourism businesses to encourage more micro, small and medium enterprises to benefit from the loan program.
In a statement, the Department of Tourism (DoT) said that under the relaxed terms of the Business Restart Assistance Program (Cares) for Coronavirus Disease 2019 (Covid-19), the grace period for the repayment of loans to ailing tourism businesses was extended to two years.
The DoT added that it hopes more micro, small and medium-sized enterprises (MSMEs) in the tourism industry will benefit from the loan facility managed by the Small Business Corp. (SB Corp) of the Department of Trade and Industry (DTI).
The government is also authorizing a second round of employee retention loans and a maximum loanable amount of 5 million pesos.
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 SB Corp. for making these necessary adjustments to help tourism businesses thrive amid this global health crisis. As we view the vaccination of tourism workers as the light At the end of the tunnel for the industry, we also know that tourism businesses are still in dire need of government support to fend for themselves in the coming months as we await the arrival of vaccine doses, “Puyat said.
SB Corp., in a recent letter to the Philippine Tourism Congress (TCP), said it approved the extension of the grace period for loan repayments from one to two years for tourism MSMEs accredited by DOT or registered by Barangay Micro Business Enterprises (BMBE).
It also increased the loanable amount in relation to the financial details of the business.
Under the amended guidelines, the loan amount should not exceed 15% of the company’s annual sales or 20% of the asset size, whichever is greater, 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-sized businesses, P3 million for small businesses, and P300,000 for micro-businesses.
Businesses with existing loans under the Bayanihan Cares program can also reapply for an employee retention loan, provided that applicants with existing loans under the program do not exceed the maximum loanable amount and that their financial statements filed by the BIR support a higher amount. Amount of the loan.
Commerce Secretary Ramon Lopez earlier revealed that of the 6 billion pesos allocated to the Cares for Travel program, the government has so far approved loans amounting to only 185 million pesos.
“Take care of the trip [is] is just starting to pick up as we reopen more tourism activities, ”Lopez said.