PRIDCO - Business Incentives - Financing Resources - Federal Government Institutions


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	Small Business Administration \| Rural Housing Program Guarantee Program for Business & Industry

		Federal Government Institutions
		Small Business Administration (SBA)
	Although it does not have direct loan programs, its role consists in collaborating with financial institutions to get the loans. It analyzes projects that have been rejected or conditioned by private banking, and supports them by guaranteeing the loan’s payment. To obtain SBA support participants should be in good credit standing, have personal guarantee, collateral, income forecasts, three years of income tax returns and financial statement. Existing businesses should also present documents showing its existing fiscal position. If it is a new business, applicants should attend a seminar on how to establish a new business. SBA Programs in Puerto Rico are the following:
	Low Doc Program: Reduces the requirements to guarantee 80 % of loans of under $100,000 granted by private banking. Loan Guarantee Program 7- SBA guarantees up to 80 % of loans under $100,000 and 75 % in excess of $100,000 up to $750,000. Loans can be used to start the business, expand it, purchasing equipment, operations capital, inventory, or to acquire land. Micro Loan Program 7- Since 1992 SBA provides short term loans from $100 to $25,000 to finance inventory, supply and operations capital (not to pay existing debts); the type of applied interest can be up to 4% and a maximum term of 6 years. Program 8 (a): Disadvantaged Small Business Development: Through this program minority business people have access to contracts with the federal government. As Hispanics are considered minorities, all Puerto Rican businesspeople may participate on this program if his/her capital is less than $250,000 (excluding the business and home) and if the business has been in operation for less than 2 years. Back to Top of Page
	Regarding counseling programs, SBA has the SCORE program in which a group of veteran retired entrepreneurs offer the compulsory seminar to those people who want to start a business. Counseling and technical support is the responsibility of the SBDC operated by the Inter American University.

Rural Housing Administration

This agency is part of the US Department of Agriculture and has many programs that provide financing to agricultural businesses to small business in general located in rural areas if they comply with the requirements.

Guarantee Program for Business and Industry

The purpose of this program is to help these companies to get established and retain them in order to promote economic development of rural communities. The agency guarantees up to 90 % of loans originated by banking institutions to benefit communities of under 50,000 people, giving priority to those under 25,000 people.
Guaranteed loans have a limit of $25 million. To qualify, the applicant should have at least 10 % of its existing business as tangible capital and 20 % in the case of new businesses.