KINGSTON, Jamaica — The Tourism Enhancement Fund (TEF) has signed a Memorandum of Understanding with the Jamaica National Small Business Loans Ltd (JNSBL) to make $70 million accessible to operators in the tourism ground transportation sub-sector, who have been negatively impacted by the COVID-19 pandemic. 

The announcement was made by Minister of Tourism, Edmund Bartlett, who was providing an update on the recovery of the tourism sector in Parliament on Tuesday, June 29. 

The loan can be accessed from JNSBL and will allow borrowers to receive up to a maximum of $1 million in monthly instalments for up to 12 months.  

“I am happy to announce that we have finalised plans for our latest relief initiative for tourism workers. The Tourism Enhancement Fund (TEF) has put in motion an injection of $70 million to support tourism ground transportation operators who have suffered tremendously from the ravages of the COVID-19 pandemic and the massive downturn in tourism over the last year,” Bartlett said. 

“The loans, become accessible at any JN Branch starting July 1, 2021, and will be offered at zero per cent interest rate; with an eight-month moratorium on the principal and a maximum repayment period of three years, with no processing fees,” he informed.  

The loan facility was first announced by Bartlett during his Sectoral Debate closing presentation in Parliament on June 15 where he described the TEF intervention as “The Default Clearance Loan”.  

Bartlett outlined that: “It was agreed that the loans will be unsecured, as the challenges surrounding collateralising the loans will prevent some operators from accessing the facility, especially those who are in the greatest need of this form of aid to remain sustainable.”  

The ministry said the application process has been made easy, and to facilitate even more applicants, the TEF has secured the services of certified accountants to assist the applicants in preparing the cash flow statements that are required as part of the application. 

So far, accountants have facilitated over 40 drivers since Saturday, June 26 with others currently being assisted, Bartlett said.

The introduction of the loan facility follows appeals by members of the transportation sub-sector for assistance.  

In a recent virtual forum hosted by the Tourism Linkages Network (TLN), on how tourism has impacted other sectors, President of the Jamaica Co-operative Automobile and Limousine Tours (JCAL), Brian Thelwell, underscored the importance of ground transportation to tourism and called for financial support for operators to prepare them for the recovery of the industry. He implored banks, in particular, to be more lenient with those having outstanding loans. 

Bartlett added that the COVID-19 Relief loan facility will be available to members of Jamaica Union of Travellers Association (JUTA), Jamaica Co-operative Automobile and Limousine (JCAL) Tours Limited and MAXI ground transportation providers who must meet a number of eligibility criteria.

More than 5,000 transport operators in the tourism sector have been impacted negatively by the forced lockdown of the tourism sector last year, due to the pandemic, the ministry said.