The GDB considers projects that promote the development, revitalization and expansion of economic opportunities for Puerto Rico. These must be feasible in the economic, commercial and financial fronts to guarantee that they would have an economic impact for the island. Loans in general are to finance the purchasing or construct buildings, or machinery and equipment.

Collateral requisites depend on the particular project to be financed. The GDB, depending on particular circumstances, could demand, among others: Property mortgages, negotiable stocks and solidary guarantees or trusts of natural or juridical people. Generally speaking, the loan principal cannot exceed 70% of the property’s value, or 50% of the value of the machinery or equipment offered as loan collateral.

Payment terms vary according to the collateral or guarantee offered and the project’s viability. Building loans are granted normally for a period of up to 15 years. Those used to acquire machinery and equipment are granted for periods up to 10 years or the duration of the property, which ever is shorter.
The GDB can offer loans for terms longer than 15 years when these are guaranteed by a federal agency.

Back to Top of Page

The Puerto Rico Authority of Financing for Industrial, Tourism, Educational, Medical and Environmental Control Facilities (AFICA) was created in 1977. AFICA provides an alternate method to finance investment capital in Puerto Rico for projects in the public and private sectors in order to promote economic development for Puerto Rico. AFICA provides financing for these projects usually at a lower cost that terms offered in the private sector.

AFICA channels financing of eligible projects through issuing bonds, which are tax-free. Monies levied from these bonds are loaned by AFICA through a loan contract to the entity that will develop the project to be financed. This benefits investors, because they obtain a tax-free income and to borrowers because they obtain financing at interest rates much lower than those offered by the private sector. AFICA bonds are of limited responsibility because they are paid only by the payments under loan contracts signed with each borrower. AFICA does not commit its credit for payment obligations.

Initially AFICA only financed industrial projects, mainly related to environmental pollution control. Currently, though an amendment to its by-laws, it can finance medical facilities and educational projects. In addition, due to changes in its charter law, AFICA also finances tourist facilities and industrial projects, including buildings for offices and services.

Back to Top of Page

The Economic Development Bank (BDE) was created in 1985 to serve as catalytic agent in the development of Puerto Rico’s economy.

It facilitates financing alternatives and accessible integrated services that are diligent and efficient, targeted to small and medium entrepreneurs, thus contributing to the island’s economic development through the creation of native capital through the following programs:

Targets small and medium entrepreneurs in the $100,000 to $1.5 million category.

Offers up to 75% of the total financing up to $1.5 million, participating with commercial banking and federal agencies.

Provides loans from $100,000 up to $15 million granted by the BDE with its own funds when the applicant does not obtain financing from a commercial bank and the project is feasible and of impact on the Puerto Rican economy.

BDE grants guarantees to financing granted by commercial banks and financial institutions to advance programs that have an impact on Puerto Rico's economy. This program guarantees up to $1.5 million and guarantees up to 75% of the financing according to the type of loan.

Through this program BDE invests in private equities of private companies up to $1.5 million or 50% of the company’s capital, which ever is lower, or provides subordinated debt loans for management buyouts.

Its main role is to finance small entrepreneurs by offering favorable terms and conditions. It seeks to promote the development, productivity and competitiveness of Puerto Rican entrepreneurs. Financing of up to $100,000 is offered.

This program is targeted to women in business in order to promote the establishment of new enterprises and foster the growth of their business, thus motivating women to enter the business sector.

Benefits:

Assists individuals who want to start their own business for the first time. Its terms are the same as the Businesswomen Program.

These organizations are created to comply with objectives related to economic, social and urban development of the municipality in which they operate. They offer direct loan programs or in guarantee with participation from financial organizations.

Back to Top of Page

The Puerto Rico Industrial Development Company's Office of Science and Technology manages this Program. It promotes technological and scientific innovation of marketable ideas. In addition, this program stimulates the development and optimization of intellectual and human capital, and the use of the natural resources of Puerto Rico. It serves as a linking instrument and support element for the alliance of the private and public sectors, and higher education institutions for the development of new technologies and products.

Private organizations, universities, other entities or individuals that show research potential to fulfill the projects proposed, may apply for funds from this program. The proposed projects should have a direct or indirect impact on the economic development of Puerto Rico.

Learn more

Back to Top of Page

This program grants financial aid for the applications for utility patents of projects that are selected by the Patent Committee of PRIDCO. The Committee meets every two months to evaluate the applications and select the best projects. The Industrial Services Area manages the transactions needed to grant financial support to the projects selected by the Committee.

Learn more

Back to Top of Page