The U.S. Small Business Administration has given authority to VegaCoop to provide financial assistance to small business owners under SBA’s 7(a) Loan Guaranty program, SBA District Director Yvette T. Collazo announced today.
“At SBA, we are pleased to add VegaCoop to our list of participating lenders in Puerto Rico and be able to offer a new alternative to entrepreneurs seeking financing for their small business endeavors,” Collazo said. “As we continue to build alliances that help expand access to capital and technical assistance, we further promote the island’s economic development.”
During a signing ceremony at the VegaCoop branch in Bayamón, SBA and credit union officials agreed to work together in expanding commercial financial alternatives for VegaCoop members and the small business community as a whole. VegaCoop is the sixth credit union to join SBA’s 7(a) program, following Cooperativa de Ahorro y Crédito de Aguada, Mauna-Coop, Cooperativa de Ahorro y Crédito Dr. Manuel Zeno Gandía, Caribe Federal Credit Union and Cooperativa de Ahorro y Crédito de Arecibo (COOPACA).
Founded 60 years ago, around the same time the SBA was established, VegaCoop is based in Vega Alta, with additional branches in Bayamón, Toa Alta, Toa Baja, Dorado, and San Juan. The credit union serves 37,000 members and 35,000 non-members.
The SBA’s primary lending vehicle, the 7(a) Loan Guaranty program provides long-term financing to acquire equipment and machinery, inventory, fixtures and accessories, and to make renovations, purchase land, build new buildings, purchase existing businesses, and for the repayment of certain debts. The SBA can guarantee up to 85 percent on loans up to $150,000 and up to 75 percent on loans higher than $150,000 up to $5 million.