Puerto Rico's Principal Financial Funding Sources

As in America the Small Business Administration helps entrepreneurs to startup their business, in Puerto Rico there are two mayor government agencies aimed to the same objective. These are the Government Development Bank and Puerto Rican Economic Development Bank. These institutions were created to help Puerto Rican start and develop their small business by providing financial aid.

The Government Development Bank (GDB) offers the economic sector economic stability functioning as a financial advisor of the Commonwealth of Puerto Rico. The agency offers to Puerto Rican business people several financial alternatives like: deposit and checking accounts, deposit certificates, loans, deposit certificates and zero-balance accounts. The agency also offers financial services like: balance consulting, periodic financial reports delivery, transaction monitoring and stop payments services. All there offers are also available my electronic banking.

The applicant must complete a funding request -which is available online- and specify the application's purposes, reasons and the requested amount. Other information available in the GDB site are industry insights for investors, and a detailed list of other affiliated government agencies that also provide economic assistance to young entrepreneurs. These organizations are:

• Puerto Rico Public-Private Partnerships Authority
• Puerto Rico Municipal Finance Agency
• Puerto Rico Sales Tax Financing Corporation
• Puerto Rico Infrastructure Financing Authority
• Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing Authority
• Children’s Trust Fund

A second government financial aid agency is the Economic Development Bank. It is aimed to develop and promote small and medium businesses providing various financing alternatives. The agency helps finance small and medium companies, new entrepreneurs, and businesswomen. It also also encourages the generation of self-employment.   

The agency also offers different types of loans, credit lines for contractors, business credits, and credit line for nonprofit organizations. Some requirements for these services are to fill a funding request, applicable federal or state warranties, 10% to 20% minimum contribution, and loan year limit stipulations. 

It is important to acknowledge that even though these financial alternatives help building up and develop potential business, are also future debts that will need to be paid. So, it is important for young entrepreneurs to be risponsible when financial decision-making is needed to benefit the business.