Enterprise Georgia Agency to Support Small and Medium Hotel Businesses in the Country

Enterprise Georgia agency is starting a new program on March 23 to cofinance family-owned, small and medium-size hotels in Georgia.

As reported, the program will seek to alleviate financial problems in the tourism industry due to the spread of the coronavirus.

The program aims to support family-owned, medium and small-size hotels so that they continue operating in the market by alleviating their financial burden. Over the next six months Enterprise Georgia will co-finance the servicing of loans borrowed by these hotels from commercial banks.

To participate in the program, hotel loans must have been taken out before March 1, 2020, and should have been taken for the purpose of building, expanding or reconstructing the hotel. Also, hotels must have in between 4-50 rooms.

Enterprise Georgia will co-finance no more than 80 percent of the interest rate on loans denominated in the national currency, while it will finance no more than 70 percent in case of the loans denominated in foreign currency, particularly in dollars or euro.

The maximum amount of loans that will be eligible is 1 million lari ($313,676) for loans denominated in the Georgian lari, while the maximum amount is $300,000 or 250,000 euro in case of loans denominated in foreign currency.