Tourism-related micro, small, and medium enterprises (MSMEs), especially those hit hard by the COVID-19 pandemic, can soon apply for working capital loans to speed up their recovery, the government said Friday.
The Department of Tourism said it teamed up with the Small Business Corp to organize the CARES for Tourism Rehabilitation and Vitalization of Enterprises and Livelihood (TRAVEL) program.
Tourism MSMEs can avail zero interest, no-collateral loans with a term of up to four years, plus a corresponding grace period of up to one year. A one-time service fee — set at a maximum of eight percent for a four-year loan — will be required from the borrower.
Applications of DOT-accredited MSMEs and local government (LGU)-accredited small-scale tourism-oriented enterprises will be evaluated and processed by SB Corp.
"The DOT believes that this program will accelerate the country's tourism recovery from the harsh impacts of the pandemic. By working together, we can hopefully bring tourism, an industry that contributed 12.7% to the country's 2019 GDP, back to its glory days," Tourism Secretary Bernadette Romulo-Puyat said.