HBTF, USAID sign agreement to offer loans in tourism sector

AMMAN — The Housing Bank for Trade and Finance (HBTF) on Monday signed a partnership agreement with the United States Agency for International Development (USAID) that will support the provision of a new loan, geared towards businesses working in tourism. 

The initiative is part of an effort by USAID’s Building Economic Sustainability through Tourism Project to boost access to credit for small, medium, and large tourism enterprises, particularly outside Amman, according to a USAID statement. 

“Community-based tourism offers the authentic, unique, local and hospitable experience that many visitors seek,” Russell Bauer, director of the Economic Development and Energy Office at USAID Jordan said, noting that small and medium-sized enterprises (SMEs) can enable local communities to benefit directly from tourism.  

The new loan product is to help SMEs grow and expand, benefitting local communities and tourists alike, Bauer explained.

“The signing of the agreement comes in support the tourism sector, as one of Jordan’s most vital sectors that contributes to the national economy, and drives development forward,” Ihab Al Saadi, HBTF general said.

The loans are offered at flexible terms and preferential interest rates as an incentive for tourism businesses.

USAID will provide technical assistance to community based tourism operators in preparing effective loan applications and enhancing their capacity to manage operations. 

The initiative aims to improve banks’ willingness to provide tourism loans by demonstrating the benefits of tourism projects and businesses, and to encourage tourism entrepreneurs to apply for loans, boosting local economies around Jordan.