Manila: Tourism-related micro, small, and medium enterprises (MSMEs) may now avail of loans of up to PHP20 million through the Turismo Asenso multipurpose loan program under the Small Business Corporation (SBCorp), the Department of Tourism (DOT) announced Wednesday. The DOT said the program aims to empower tourism MSMEs by providing access to low-interest financing to help scale up operations and enhance services for visitors.

According to Philippines News Agency, the program was launched following the formal signing of a memorandum of agreement between the DOT and the Department of Trade and Industry last April. Tourism Secretary Christina Frasco emphasized the significance of this initiative, stating that tourism contributes 8.9 percent to the country's GDP and provides jobs to over 6.75 million Filipinos. The Turismo Asenso loan program is seen as a strategic move to grow tourism as a robust economic driver by providing MSMEs the capital they need to expand, hire more people, and improve services.

Qualified applicants may borrow up to PHP20 million with an interest rate of 1 percent per month on a diminishing balance basis. For non-collateral loans, new borrowers may access up to PHP3 million, while existing borrowers may qualify for loans of up to PHP5 million. Additionally, flexible repayment terms of up to five years are available.

To qualify, interested applicants must have a Filipino-owned registered business or at least 60 percent Filipino ownership, a business track record of not less than one year, and an asset size not exceeding PHP100 million, excluding the lot. Furthermore, applicants must not have any past due accounts in any of the programs of SBCorp or any major negative credit findings.