The Economic Development Bank for Puerto Rico announced that effective immediately, it will begin offering new loans capped at $50,000 aimed exclusively at helping small and medium businesses effectively prepare for emergencies such as hurricanes and avoid subsequent interruption in business operations.
“Gov. Ricardo Rosselló’s administration is committed to the development of small and medium- sized businesses, since they constitute one of the main engines of our economic development and are an important source of job creation,” said EDB President Luis Burdiel.
“That’s why we designed this new product, based on the experience of a large number of local businesses after Hurricane María last year,” he said.
“Many of them were not prepared with the right equipment to reactivate their operations after the atmospheric event. This new loan is designed to facilitate access to capital for small and medium-sized businesses time to prepare and preserve business continuity,” he added.
The contingency funding plan for emergencies will be capped at $50,000 with a repayment term not exceeding five years. The final term will depend on the applicant ‘s repayment ability. There will be no penalty for prepayment of the loan.
The funds may be used for working capital, purchase of equipment such as water cisterns, electric generators or other equipment required to maintain business operations, and property improvements, among other uses.
The EDB has approved nearly $2.3 million in quick delivery commercial loans to small and medium- entrepreneurs from various sectors affected by Hurricane María. In addition, the EDB has approved financing totaling more than $7.3 million from October 2017 to July 2018. These financings achieved the retention of 800 jobs and created 564 jobs.
“Our staff is ready to provide the necessary guidance and promptly process the loan applications from entrepreneurs,” said Burdiel.