More money coming for tourism businesses under Gov't/JN Bank loan programme
Published:Sunday | June 12, 2022 | 11:37 AM
Tourism Minister Edmund Bartlett says a Tourism Enhancement Fund's (TEF) loan product to help entrepreneurs refurbish small hotels and tourist attractions will be boosted with additional money.
But he says details will be provided later.
The TEF is a government initiative aimed at promoting growth and development in the tourism sector.
The current TEF 5x5x5 loan, which is a component of a wider TEF loan programme that commenced in 2007, is offered to tourism entrepreneurs. It is provided to persons through a partnership agreement with the JN Bank Small Business Loans Division.
JN disclosed at a session for small and medium tourism enterprises in New Kingston recently that some $900 million in loans has been disbursed since the programme started.
Garfield Palmer, chief, SME Unit in the JN Bank Small Business Loans Division, said the TEF 5x5x5 loan has accounted for more than half the TEF loans approved by JN Bank to entrepreneurs within the industry.
“Up to April 30, 2022, we have disbursed a total of 430 loans through TEF programme, valued at nearly $900 million. And of the 430 loans distributed, the 5x5x5 continues to be the most accessed, with 278 loans issued to date under the programme,” Palmer said.
“The maximum loan amount offered is $5 million at an interest rate of five per cent per annum on the reducing balance. And, one can receive up to six months moratorium on the principal, if necessary,” he added.
JN Bank also offers two other TEF loans under the partnership agreement- The TEF Default Carriage Loan and the TEF Community Tourism Loan.
The TEF Default Carriage Loan, which is a no-interest loan, was created to allow for the partial or full payout of loan arrears accumulated on a tourism transportation loan while the Community Tourism Loan is geared towards helping all MSMEs in Treasure Beach, St Elizabeth.
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