DTI-8 urges tourism-related MSME biz affected by COVID19 to avail of interest free loans

MINERVA BC NEWMAN

CEBU CITY – The Department of Trade and Industry (DTI-8)-Eastern Visayas urged businesses that are affected by COVID19 and are tourism- related to avail of the government’s interest-free loans under the CARES for Tourism Rehabilitation and Vitalization of Enterprises and Livelihood (CARES for TRAVEL) Program of the government-owned Small Business (SB) Corporation.

DTI-8 regional director Celerina Bato made this call during the Mugstoria Ta, an online conversation hosted by Assistant Secretary Anthony Gerard Gonzales of the Office of the Presidential Assistant for the Visayas (OPAV).

According to Bato that P10-billion budget had been allotted to SB Corp., an attached agency of DTI to expand its P3-CARES (COVID-19 Assistance to Restart Enterprises) Program.  Under this new loan package, DTI-8 has so far released only about P3 million to more than 50 approved borrowers in the tourism industry, she added.

“We encourage our tourism businesses to take advantage of this loan since it is with zero interest,” she said.

Under the first loan package of P3-CARES, Bato noted the DTI-8 was able to release P63.53 million to over 900 borrowers in Region 8.

Bato pointed out that the CARES for TRAVEL program primarily seeks to assist tourism micro, small and medium enterprises (MSMEs) and help them sustain their businesses and keep their workers amid the ongoing pandemic.

Through the SB Corp.'s CARES for TRAVEL Program, tourism 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, Bato stated.

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: four percent for one year; six percent for two years; 7.5 percent for three years; and eight percent for four years, she added.

SB Corp will evaluate and process all loan applications of DOT-accredited MSMEs and local government (LGU)-accredited small-scale tourism-oriented enterprises to ensure their eligibility and to determine the loanable amount and terms in accordance with the CARES for TRAVEL 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.  Bato said not more than P1 million can be lent to medium enterprises; not more than P500,000 for small enterprises; and not more than P200,000 for micro enterprises.

Applications a higher loan amount may be approved by the SB Corp, if enterprises submit their written plan on how to restart or improve their business models.  Bato called on interested tourism enterprises to access the SB Corp.’s CARES Bayanihan 2 Borrower Registration System through: https://brs.sbgfc.org.ph.  The submission of loan applications is now done online, she added.

Meanwhile, SB Corp. requires additional requirements for MSMEs without BIR-filed FS that include 2019 Mayor's Business Permit for loan requests exceeding P50,000 and 2019 Barangay Business Permit for loans less than P50,000.

Enterprises applying for loan under the program must submit pictures and videos of inventories, equipment, and assets to SB Corp. and should have no major unresolved negative credit dealings. (Photos: OPAV)