The U.S. Department of Agriculture has approved a $1 million loan to the Puerto Rico Economic Development Bank for job promotion in rural areas, Luis R. García-Boria, Rural Development acting state director for Puerto Rico, said Monday.
“This low-interest loan will be used to provide loans to eligible third parties throughout rural areas in Puerto Rico,” García-Boria said. “Intermediaries serve as a critical component to boosting local economies.”
This funding is being provided through USDA Rural Development, Intermediary Relending Program (IRP). Under this program, USDA lends money to economic development intermediaries (nonprofit and public bodies) who then re-lend it to rural businesses (ultimate recipients) that otherwise might not be able to obtain such financing.
IRP is USDA Rural Development’s primary program for capitalizing revolving loan funds. The repayment of the ultimate recipients’ loan allows the intermediary to continue to make more loans to new recipients, supporting sustainable economic developments.
Funds are used to assist with financing business and economic development activity to create or retain jobs in disadvantaged and remote communities. Intermediaries are encourage to work with state and regional representatives and in partnership with other public and private organization that can provide complementary resources, the agency said.