TUESDAY JULY 7TH, 2020:- $900K from the revised Government of Grenada’s Small Hoteliers Loan programme available through the Grenada Development Bank has already been approved.
The loan facility was first introduced in the first quarter of 2019 with an initial injection of $2M however the interest of potential beneficiaries did not move beyond initial enquiries.
The advent of COVID-19 prompted not only a review of the fund but also an increase from $2 M to $7M as part of the Government’s economic stimulus package aimed at supporting the recovery and growth of small hotels.
Multiple modifications have now made this facility more attractive to small hoteliers. This includes an increase in the repayment term from 7 years to 10 years comprising a grace period of up to one year, as well as changes to the interest rate; with the initial 3.5% being reduced to 2% in the first year and 3% thereafter. Loan application fees and legal fees are now waived except for the reimbursement of costs incurred by the lawyers.
The loan facility allows each applicant to qualify for a maximum of $300K, an increase from $200K, which can be used for COVID-19 adaptation measures, operational expenses including payroll support, undertaking upgrades and/or minor refurbishment of existing properties, marketing and staff training.
In addition to the projects already approved, an additional twenty (20) establishments have expressed interest in obtaining financing from the fund and the Bank has adopted measures to ensure that the review and appraisal process is highly efficient.