EDB, PRMA partner to offer financing options to local SMEs
The Puerto Rico Economic Development Bank (EDB) and the Puerto Rico Manufacturers Association (PRMA) signed a collaborative agreement to support Puerto Rico’s small- and mid-sized firms (SMEs) by offering financing alternatives.
Through the “Alliance for the Economic Development of Puerto Rican Industry and Commerce,” the EDB will offer SMEs an exclusive financing product with competitive terms and conditions and interest rates, to promote start-ups and exports, said Luis Alemañy, president of the EDB, during the signing.
“In its role of facilitating financial alternatives and accessible, diligent, and efficient integrated services to small and medium-sized entrepreneurs, the EDB has the economic and human resources to evaluate, according to the bank’s credit policies, the financing needs of the PRMA’s members,” he said.
The bank will consider the challenges faced regarding the supply chain, global impact due to the pandemic, instability due to the conflict between Russia and Ukraine, among others.
“This product will seek to support this economic sector with access to capital to meet these challenges,” said Alemañy.
Through the alliance, the EDB will offer capital financing products that could include direct loans or lines of credit under the following terms and conditions: maximum financing: $1 million; fixed annual interest rates of between 4% – 8%; 1% commitment fee; handling charges of 0.25%; moratorium on term financing (does not apply to line of credit) of six months in payment of principal and three months in payment of interest; and a Variable Term, depending on use of funds.
Meanwhile, PRMA Executive Vice President Yandia Pérez said the trade group “recognizes that in Puerto Rico there are many initiatives in the different sectors of society that aim to promote the island’s welfare and socioeconomic progress in sectors such as the economy, education, culture, and the environment, among others.”
The signing of the agreement represents a growth opportunity for PRMA members, she said.
“With this agreement we’re providing tools to help our members to grow, develop and consolidate their business, which is currently a challenge in the context of global economic uncertainty,” Pérez said.
As part of the agreement, the EDB will assist referred PRMA members in the process for filing their loan application and will keep track of information for the necessary statistics.
“The EDB will facilitate the processing of the application, evaluation, analysis, approval, closing and disbursement of the loans. In case of having a need for additional financing, it will be evaluated on a case-by-case basis, according to the bank’s borrowing margins determined from time to time,” Alemañy said.
Meanwhile, the PRMA will provide members with information about the EDB’s different financing programs and their requirements.
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