Tourism Call - Frequently Asked Questions
What is the European Union/Uganda Development Bank Tourism Intervention Fund?
It 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.
Where can I find the application form?
What is the mode of submission? Physical or online?
What is the facility interest rate?
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%.
What is the maximum amount of the grant and loan I can get?
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).
Can I apply for the grant only?
No, the entity must qualify for the loan before accessing he grant.
Is the grant repayable?
No, the grant is not repayable.
Do I need to submit original documents or copies?
No, the entity should submit copies of the original documents.
How long does it take before I can receive the money?
On receipt of the project proposal, a decision is made on whether the project is eligible for funding or not. The applicant is then notified of the decision. Once the project is eligible for funding, a detailed appraisal is carried out. After the detailed appraisal, the Bank makes a decision, and the customer is notified accordingly. The Bank commences disbursement upon fulfilment of the disbursement conditions agreed with the customer.
Do I need collateral to access the facility?
Yes, you need collateral for the loan facility of up to 120% cover.
Do companies that have newly started operations qualify?
No, the intervention is for entities that have been in existence for two years (2020 and 2021) and more. Consideration is for businesses that were affected by the Covid-19 pandemic.
I am located out of Kampala, Do I qualify?
Yes, you do qualify. The intervention caters for everyone in the tourism sector countrywide.
I am not a member of UHOA or Auto can I apply?
The intervention is open to all entities within the tourism sector.
What is the deadline for the proposals /Application?
The deadline for application is 31st of October 2022 at 5:00pm.
What are some of the funding needs that may be covered under this intervention?
No, this is a working capital facility. It can be used for payment of salaries, permits, utilities, transport, and stational among other operational costs. Funds for the construction of the swimming pool, hotel rooms etc can be applied for separately.