DOT Urges Tourism-Related MSMEs to Avail of Loan Program From SB Corp.
Photo Credit: Department of Tourism Official Website
Tourism (DOT) Secretary Bernadette Romulo-Puyat has urged micro, small, and medium enterprises (MSMEs) to avail of a loan program provided by the Small Business Corporation (SB Corp).
This follows SB Corp’s announcement that they will be opening loan applications under the CARES for TRAVEL program of the DOT.
"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,” Puyat said.
She added that enterprises may submit their loan applications online while the department awaits the transfer of funds from SB Corp.
Under the program, tourism-related 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. 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: 4% for one year, 6% for two years, 7.5% for three years, and 8% for four years.
SB Corp will then evaluate and process all loan applications of DOT-accredited MSMEs and small-scale tourism enterprises accredited by local government units (LGUs) to ensure their eligibility and determine the loanable amount and terms in accordance to the CARES for TRAVEL guidelines.
MSMEs that filed financial statements in 2018 or 2019 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 statement submitted to the BIR: P1 million for medium enterprises, P500,000 for small enterprises and P200,000 for microenterprises. Applications with a higher loan amount may be approved by SB Corp provided that the applying enterprises submit their written plan on how they will restart or improve their business models.
Meanwhile, SB Corp shall require additional requirements for MSMEs without BIR-filed statements, namely a 2019 Mayor's Business Permit for loan requests exceeding P50,000 and a 2019 Barangay Business Permit for loans less than P50,000. Enterprises must also submit pictures and videos of inventories, equipment and assets to SB Corp and they should have no major unresolved negative credit dealings.
"Realizing the important role that MSMEs hold in the recovery of the tourism industry, the DOT shall see to it that the allocation for the CARES for TRAVEL program is dispersed fairly to qualified enterprises who will apply," Puyat said.
This follows SB Corp’s announcement that they will be opening loan applications under the CARES for TRAVEL program of the DOT.
"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,” Puyat said.
She added that enterprises may submit their loan applications online while the department awaits the transfer of funds from SB Corp.
Under the program, tourism-related 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. 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: 4% for one year, 6% for two years, 7.5% for three years, and 8% for four years.
SB Corp will then evaluate and process all loan applications of DOT-accredited MSMEs and small-scale tourism enterprises accredited by local government units (LGUs) to ensure their eligibility and determine the loanable amount and terms in accordance to the CARES for TRAVEL guidelines.
MSMEs that filed financial statements in 2018 or 2019 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 statement submitted to the BIR: P1 million for medium enterprises, P500,000 for small enterprises and P200,000 for microenterprises. Applications with a higher loan amount may be approved by SB Corp provided that the applying enterprises submit their written plan on how they will restart or improve their business models.
Meanwhile, SB Corp shall require additional requirements for MSMEs without BIR-filed statements, namely a 2019 Mayor's Business Permit for loan requests exceeding P50,000 and a 2019 Barangay Business Permit for loans less than P50,000. Enterprises must also submit pictures and videos of inventories, equipment and assets to SB Corp and they should have no major unresolved negative credit dealings.
"Realizing the important role that MSMEs hold in the recovery of the tourism industry, the DOT shall see to it that the allocation for the CARES for TRAVEL program is dispersed fairly to qualified enterprises who will apply," Puyat said.
