The president of the Puerto Rico Economic Development Bank (BDE), Luis Alemañy González, announced the designation of $20 million in funds under the “Impulso a Tu Negocio” program of the State Small Business Credit Initiative (SSBCI) that They will be used to grant lines of credit for working capital to companies in the construction industry.
In the announcement, which was made in conjunction with the Builders Association, it was reported that the funds are part of the $109.3 million granted to the BDE by the Federal Treasury Department through the “Impulso a Tu Negocio” program. This initiative allocates federal SSBCI funds to capitalize on local programs to support small and medium-sized businesses.
The president of the BDE, explained that, “although at this time there is an unprecedented amount of federal funds, there are many contractors requesting lines of credit to be able to recruit employees, pay payroll, operating expenses and utilities, and buy materials, with the aim of being able to complete the project and certify it so that FEMA or CDBG-DR will reimburse you. Not having the money in advance, they cannot execute, the federal funds are not used and the contractors end up going bankrupt; The contractors sector constitutes one of the sectors with the highest bankruptcies together with the restaurant sector, among others. The credit lines available from the BDE and this collaboration agreement help members of the industry see financing as viable, thus helping the sector to continue presenting positive results during 2023.”
Alemañy added that “Governor Pedro Pierluisi has been emphatic that it is necessary to continue identifying resources to strengthen the construction industry, in order to promote economic development and expedite infrastructure works that are carried out throughout the Island. We will continue joining efforts with the different sectors of our economy to support them, because their success is the success of Puerto Rico.”
The performance of the construction industry is a key mechanism for the development of any region since it creates and improves infrastructure, which increases fixed capital; impacting economic activity, local and foreign investment, and generates jobs, both direct and indirect. According to data provided by the BDE’s Center for Economic Studies, cement sales for February 2023 totaled 1,217,300 94-lb. bags, not seasonally adjusted. This result represents an increase of 3.4% when compared to February 2022 and is the third positive growth, after three consecutive year-on-year reductions. In January, 1,103,100 bags of 94 lbs. or an increase of 3.8% when compared to the same month of the previous year.
“We have shown that the construction industry is resilient and necessary. In fact, we were one of the first to restart operations when the strictest measures to control COVID-19 infections were still in force, which turned out to be key in the rebound observed in the sector. Our commitment is to continue supporting small and medium-sized companies in this sector, who are essential for the future of development in Puerto Rico. These aids offered by the BDE make it possible for our partners and the industry to continue meeting the construction demand that Puerto Rico has,” mentioned the president of the Builders Association, Arq. Vanessa DeMari Monserrate.
Finally, the president of the BDE stressed that “it is important to integrate the efforts between the public and private sectors to guarantee success and continue with the increase in construction projects. I thank the Puerto Rico Builders Association for the collaboration to continue promoting the economic development of Puerto Rico and its economic recovery.”
