Uganda Development Bank Ltd (UDBL), the country’s national Development Finance Institution, in partnership with the European Union, has announced a special call for eligible businesses in the tourism sector to apply for and receive up to Shs1 billion in grants and soft loan with flexible terms aligned to the current needs of the sector.
This follows the devastating two year -lockdowns due the novel global COVID-19 pandemic that shattered businesses especially in the tourism sector.
According to officials the European Union and Uganda Development Bank Tourism Intervention Fund is a grant attached to a loan (also known as ‘facility’) to enable the tourism sector soar through the hardship of COVID-19.
“The facility seeks to stimulate businesses operating in the tourism sector, which has been heavily impacted by COVID-19 by providing a soft loan with flexible terms aligned to the current needs of the sector; the loan will be accompanied by a grant,” the officials explained.
The facility has a concessional loan interest rate not exceeding 12% however, the effective cost of the facility to the borrower shall not exceed 8%.
Regarding the amount of loan that can be offered by the Bank, officials explained that an entity and its sister organizations can apply individually as long as the total amount applied for does not exceed Shs1 Billion (for both loan and grant).
“The entity must qualify for the loan before accessing the grant and the grant is not repayable. The UDB officials emphasised that the intervention is for entities that have been in existence for two years (2020 and 2021) and more.”
The deadline for application is 31st of October 2022 at 5:00pm.
Or hand-delivered to UDB offices, Plot 6, Nakasero Road Kampala, Rwenzori Towers, 1st Floor, Wing B during working hours [Monday to Friday 8:00am – 5:00pm, closed on public holidays].
