Manuel Cidre Miranda, secretary of the Department of Economic Development and Commerce (DDEC) and Josué Rivera, regional director of the Federal Small Business Agency (SBA), urge small and medium-sized enterprises (SMEs) and non-profit entities to apply for the Economic Damage Disaster Loan (EIDL) if their operations have been affected by the effects of the COVID-19 pandemic. SMEs have until the 31st of this month to apply for these loans for economic recovery.
Josué E. Rivera indicates that on October 8th the maximum total loan increased from $ 500,000 to $ 2 million. With a fixed interest rate of 3.75% for businesses and 2.75% for private non profits, the term of the loan is 30 years.
“This loan program provides affordable capital for the borrower and without complications. We want to make sure that as many merchants, including farmers, and nonprofits in need apply on time for this low-interest loan, which matures in less than 2 weeks. We will continue to process applications after the deadline, including reconsiderations, but we cannot accept applications after the deadline,” said Josué E. Rivera.
The use of these funds is strictly for operational costs which include wages, rent or mortgage, public services, and other common commercial costs like commercial debts. The use of these funds was extended to cover federal debt payments and prepayments.
Rivera explained that in Puerto Rico some 27,000 EIDL COVID-19 loans have already been approved, for a total of $2,065,925,118. This loan was accompanied by a reserved and a directed advance (EIDL Targeted Advance and Supplemental Advance), which are grants of up to $15,000 for businesses with substantial economic damage, located in disadvantaged areas. In Puerto Rico, 6,806 Targeted Advances have been approved, for a total of $60.2 million and 5,256 supplemental Advance, for a total of $26.2 million.
The Governor Pedro R. Pierluisi commented that these loans with those terms and low interests are an excellent opportunity for business and private nonprofits to stay up to date with business issues.
To learn how to apply, get help and submit the application, call 833-853-5638 or 855-440-4960. You can also write to the email [email protected].