TOURISM Secretary Bernadette Puyat has called on micro, small and medium enterprises (MSMEs) to avail themselves of the Cares for Tourism Rehabilitation and Vitalization of Enterprises and Livelihood (Cares for Travel) program to help them sustain their businesses and keep their workers amid the on-going pandemic.
This, after the Small Business Corp. (SB Corp) announced the opening of loan applications under the Cares for Travel program.
“The Cares for Travel program primarily seeks to assist tourism MSMEs. The support we give them now will come a long way in ensuring their survival in the coming days as we embark on slowly resuming tourism. The Department of Tourism (DOT) is thrilled to share the news that enterprises may submit their loan applications online, while we are awaiting the download of funds to SB Corp,” Puyat said.
Under the program, MSMEs will have access to zero interest, no-collateral loans with a loan term period of 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 to the SB Corp., the amount of which will depend on the loan term period: our percent for one year; six percent for two years; 7.5 percent for three years; and eight percent for four years.
SB Corp. will evaluate and process all loan applications of DOT-accredited MSMEs and local government-accredited small-scale tourism-oriented enterprises to ensure their eligibility, and will determine the loanable amount and terms in accordance with the program guidelines.
According to SB Corp, MSMEs with financial statements (FS) in 2018 or 2019 filed with the Bureau of Internal Revenue (BIR) and have no unresolved negative credit dealings are automatically eligible to apply for a loan under the program.
The initial loan amount to be granted to MSME applicants will be based on the submitted BIR-filed FS: not more than P1 million for medium enterprises; not more than P500,000 for small enterprises; and not more than P200,000 for microenterprises.
Applications with a higher loan amount may be approved by the SB Corp. provided that enterprises submit their written plan on how to restart or improve their business models. (PR)