At DuartePino, we are committed to helping local scale-ups and startups reach their full potential, and give them tools toward resiliency. As we all face new and unchartered waters, and uncertainty caused by the biggest health and economic crisis of modern time, the COVID-19 outbreak, we stand ever the more committed to this mission. Half of the battle is knowledge --understanding the resources available to your business in times of crisis, and taking action.
Here we share with you a summary of local assistance programs, loans and grants being offered to Puerto Rican small and medium businesses, their respective guidelines, and helpful links toward obtaining such aid.
This article is a living compilation and will be updated as more information becomes available.
A. Federal Aid
Here you can find a summary of federal programs being offered. There are two main federal programs aimed at helping small and medium-sized businesses impacted by the COVID-19 crisis: the Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP). Both programs depend on availability of funding. Therefore, if at the time you visit the corresponding website or bank you are notified that there is no funding available, you would need to stay alert to see if new funding is appropriated. Further details can be found here (Spanish).
B. Local Assistance (Puerto Rico)
1. Puerto Rico - Governor Wanda Vázquez announced the following measure but the program is on hiatus because it has no funds. It offered $1,500 to small and medium-sized companies that have ceased operations due to the COVID-19 crisis that can request this assistance here. Visit www.refuerzoeconomico.com for more information.
Also, The date to file tax returns has been postponed until July 15, 2020, and the 10% withholding at the source of payment for professional services has been suspended until June 30, 2020.
2. CDBG - DR Funds - The Government of Puerto Rico announced the launch of the Small Business Financing Program (SBF), financed with funds allocated by the US Department of Housing and Urban Development (HUD) as part of the CDBG-DR funds.
SBF will provide a Recovery Grants phase (grants awards of up to $50K) for working capital and moveable equipment for small businesses and micro-enterprises that suffered physical and/or financial losses due to the Hurricanes. Following the Recovery Grant phase, SBF will offer the ability to apply for flexible loans to implement economic recovery further. More information here.
3. Caguas Municipality - If your business is operating in Caguas, the municipal government initiated a program that includes the following opportunities.
C. Assistance from private and non-profit organizations
- Lendreams has an emergency micro-program for existing businesses with:
3. Facebook’s Small Business Grants Program - At the moment, this program is not active in all states. Be on the lookout to see when this program will be offered in your state or territory. Facebook is providing $4K recipient support in the United States ($2,500 in cash, $1,500 in optional ad credits). To be eligible to apply, you must:
Be a for-profit company
Have between 2 and 50 employees
Have more than one year of business activity
Have experienced difficulties due to COVID-19
Be in or near a location where Facebook operates
For the Facebook program, you can apply here.
4. Salesforce - This program provides the opportunity to receive a grant of $10K. This summary was taken from an official Salesforce statement: To be eligible, companies must:
Be a for-profit company
Have 2-50 employees
Have been in business for at least 2 years from March 2020
Have an annual income between $250k and $2M
Be experiencing challenges due to COVID-19
For the Salesforce program, you can apply here.
5. Intuit - The Small Business Relief Initiative - This program is being offered in conjunction with GoFundMe, where small businesses can raise a certain amount of money. You can find the details here.
D. Local Incubation and Acceleration Programs
These are NOT direct business assistance programs, such as the SBA program. However, we include them because they have taken special measures due to the COVID-19 outbreak, and may present opportunities for certain types of companies.
The accelerator also offers Pre18, a 12-week program dedicated exclusively to local early-stage businesses. It provides $20K to up to 40 companies, and the application period starts on May 11, 2020. Learn more here.
b. Grupo Guayacán - This organization, which was founded more than two decades ago, is offering several investments, incubation, and business acceleration programs. With the COVID-19 situation we are now facing, they are offering different types of assistance. Their programs have different calendars, so keep up to date by visiting their website.
E. Other Guides and Resources:
U.S. Small Business Administration (SBA) - Coronavirus: Small Business Guidance & Loan Resources - LINK
U.S. Centers for Disease Control - Interim Guidance for Businesses and Employers to Plan and Respond to Coronavirus Disease 2019 - INFO
U.S. Chamber of Commerce - Combating the Coronavirus - INFO
National Venture Capital Association - Coronavirus Information and Resources for VCs and Startups - INFO
Gusto - COVID-19 Relief Resources for SMB's - INFO
Intuit - The Small Business Relief Initiative - INFO
Ureeka - COVID-19 Resource Center - INFO
Webinar - Preparing Your Business to Navigate Coronavirus Disruption - LINK
Presentation - Preparing Your Business to Navigate Coronavirus Disruption - LINK
Rios Mena Law - The guide to transition your company to operate remotely - INFO
Our Recommendation: Act NOW!
Start applying NOW. Direct business assistance programs must be inundated with applications and few resources. This means that your application can take weeks to process, and even more time to be funded. Requests take hours, and you may have to speak to experts.
Also, create a plan and seek to meet with an expert. Start putting together an emergency plan and budget, with business continuity measures and new sources of income. If you don't have a cash flow projection for the next 3 to 12 months that includes a sales decline scenario, do it now.
The COVID-19 pandemic is a situation that is unlike any other crisis your business has ever had to face. Still, as business owners, we are attuned to changing tides and are resilient. Now it’s time to take action for the benefit of you and your team.
This blog was written by Ivan Ríos Mena, Esq. member of our external team of advisors, Ivan combines his unique legal, business, and operational experience to serve emerging companies in strategic ways, made possible by his eclectic background. The former COO of the PR Science, Technology & Research Trust, and founding member of the global startup accelerator Parallel18, Ivan currently advises businesses in corporate, commercial, government incentive, and intellectual property matters related to different stages of commercialization.
DuartePino is a management advisory firm that combines in-depth customer knowledge with practical expertise in marketing communications to help clients create sustainable business growth. We can provide your organization with a fresh perspective, a proven process that invests in the outcome, and the tools for successful execution. From Fractional CMOs to business advisory services, contact us to learn how our team can help with growth strategies for your organization.
*NOTE: The content of this website has been prepared for information purposes only. It is not intended as, and does not constitute, legal advice on local or federal matters.
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