As travel restrictions ease up, the Land Bank of the Philippines (LANDBANK) has launched a new credit program to support government efforts to revitalize local tourism in the country.
The Tourist Infrastructures and Services Mobilization (TOURISM) Lending Program aims to provide financial assistance to local government units (LGUs), and tourism enterprises accredited with the Department of Tourism (DOT) to help them re-establish and improve their tourist facilities and services.
“LANDBANK is committed to supporting the national government’s efforts to restore confidence and enthusiasm for the tourism sector that will help boost economic activity, and create livelihood opportunities in tourist areas nationwide,” said LANDBANK President and CEO Cecilia Cayosa Borromeo.
LANDBANK has allocated an initial program fund of P5 billion to finance access projects to tourist destinations like airports, sea ports, transport terminals, roads and bridges, communication utility and IT projects, water and power utility projects.
Eligible projects include primary tourism support facilities, infrastructures and services like hotels, resorts, automation and digitalization of tourism services by travel agencies, facilities for meetings and conferences; secondary tourism projects like restaurant, adventure facilities, shopping malls, ambulatory clinics and spa; and tertiary hospitals among others.
LGUs may borrow 100% of the total project cost requirement, but shall not be more than the LGU’s net borrowing capacity as certified by the Bureau of Local Government Finance (BLGF), while small and medium enterprises (SMEs) and cooperatives may borrow up to 80% of the project cost, and up to 75% for large corporations.
Short-term loans for working capital are payable up to one year while term loans for permanent working capital are payable up to five years. Meanwhile, term loans for capital expenditures are payable based on projected cash flow up to a maximum of 15 years, with a two-year grace period on the principal repayment.
Term loans for the acquisition of tourist transport facilities and units are payable based on cash flow but not to exceed seven years or the economic useful life of the financed facilities, inclusive of a six-month grace period.
Interested borrowers may contact the nearest open LANDBANK Lending Center or Branch nationwide, or call LANDBANK’s customer service hotline at (02) 8-405-7000 or at PLDT Domestic Toll Free 1-800-10-405-7000.
