The Economic Development Bank for Puerto Rico (BDE by its Spanish initials) announced Wednesday that it has disbursed $233 million in subsidies to almost 5,000 entrepreneurs under the Community Development Block Grant Disaster Recovery (CDBG-DR) Small Business Financing (SBF) program, which generated nearly 50,000 jobs on the island.

As of 2021, only $12 million had been disbursed, but under the current administration of BDE President Luis Alemañy, $221 million has been disbursed, representing 4,353 benefited entrepreneurs. The program has been so successful that it opened the door to increasing the subsidy limit from $50,000 to $150,000 after the allocation of an additional $130 million, benefiting more than 500 entrepreneurs with the increase.

“Thanks to this grant, I was able to continue operating my hotel and maintain my full staff after the impact of the hurricanes,” said Brenda Fuentes Arroyo, owner of the Comfort Inn Hotel in Levittown, Toa Baja. “I am very happy and grateful to the BDE for the $150,000 granted, and the support they provide to my business.”

Alemañy said the numbers are favorable given that the island’s 78 municipalities have been impacted with the retention of 31,155 jobs and the creation of another 16,243 for a total of 47,398 jobs generated. Indirect jobs, meanwhile, are estimated at 118,495, for a total of 165,893 between direct and indirect jobs.

“We highlight the positive impact subsidies to entrepreneurs have had on the island’s economy since they have facilitated the retention and creation of jobs, contributing to economic development,” Alemañy said. “At the BDE, we continue to take affirmative steps to stimulate and support existing companies, thus generating a favorable environment for investment and economic growth in Puerto Rico.”

Carlos Capella, the project manager of the BDE’s Small Business Financing Program, added that “it is a reflection of the unwavering commitment of the BDE work team to continue supporting small and medium-sized businesses.”

“Thanks to the management and disbursement of these funds, we were selected by the federal Treasury for the State Small Business Credit Initiative program that we are currently managing with cooperatives and local banks.”

Currently, the banking institution has a total of 122 active applications pending for almost $8 million to be disbursed. Among the industries that have been subsidized are tourism, restaurants, manufacturing, construction, agriculture and services.

The U.S. Department of Housing and Urban Development awarded the BDE financing through the CDBG-DR SBF in 2020 to administer funds to support businesses affected by hurricanes Irma and Maria.

Source: The San Juan Daily Star