Extension of hotel financing program through June 2023

Hotels recovering from the Covid-19 outbreak get financial aid. Thai Cabinet extends low-interest loans till June 2023. Loans were offered to help hotels repair properties after several closed due to the pandemic.

This morning’s statement extended the program through June 2023 and loosened several criteria. The move helps SME hotels recover from the pandemic. Many tiny properties have crumbled after three years of closure due to a lack of maintenance and revenue. Friendly conditions on small hotel loans enable firms to reinvest in their buildings as tourism grows. They’re low-interest and postponed. Finance Minister Arkhom Termpittayapaisith approved the extension and earmarked 5 billion baht to reinvest in Thai hotels.

The program began in June. Two years of interest-only payments and five years to repay the debts. Government Savings Bank offers loans. The Thai government would pay GSB 2% interest for the first two years, up to 200 million baht. The program is being expanded to allow more hotels to apply for financing. Properties awaiting a business license are now eligible for loans. The initial three-year profit consideration period is now five. When calculating repayment terms, loan officials consider a property’s income. A hotel owner-operator or SME in the sector can apply. They must be a Thai-registered corporation or individual with more than 50% Thai ownership. The Finance Minister said he wants to provide more small hotels with substantial loans. “The timeframe was extended and conditions were relaxed to help hoteliers get working capital and enhance their liquidity. Entrepreneurs can borrow 5 million baht.”