A 3% special Tourism Loan Facility is now available at the AID Bank, for the purpose of expansion and upgrade of hotel and restaurant plants.
This EC$15 million special facility, funded with resources from the Citizenship by Investment programme (CBIP) was recently signed between the Government of Dominica and the AID Bank, to improve the tourism infrastructure on island.
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Terms of on-Lending
- The concessionary interest rate of 3% per annum, is on the reducing balance;
- A grace period of a maximum of twelve (12) months on the payment of the principal only shall be granted;
- The maximum term of the loans shall be 10 years (inclusive of the grace period);
- All new construction and upgrades must first be approved by the Physical Planning Division; and
- Loans shall not be granted for the purpose of refinancing existing debt.
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Eligibility Requirements
According to the tourism loan agreement, eligible requirements include:
- A debt to equity ratio of 80:20 or less;
- Loan requests which should not exceed 90% of the value of the collateral;
- No existing arrears on financial obligations or satisfactory arrangements have to be made for the repayment of debt;
- Current architectural / engineering plan for the upgrade or expansion;
- Approval by the Invest Dominica Authority (IDA) for the upgrade or expansion of the property;
- Approval by the Physical Planning Division for the upgrade or expansion of the property;
- An updated business plan; and
- Compliance with Inland Revenue (IRD) and Dominica Social Security(DSS) requirements;
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Collaboration with Affiliates
In the execution of this special facility, the AID Bank is collaborating with:
Invest Dominica Authority (IDA) - to expedite the processing of loan requests;
Discover Dominica Authority (DDA) - for the certification of properties which have expressed an interest in accessing these funds; and
Dominica Hotel and Tourism Association (DHTA) - with whom it has partnered on this venture.
AID Bank is committed to working with hotels and restaurants in a prudent and confidential manner; and on a case by case basis, to assist with the upgrade or expansion of their facilities to ensure that they achieve the minimum standards for their sub-sectors.
Release Date:
Sep