TLDR:
- The Puerto Rico Economic Development Bank (EDB) has secured a $30 million allocation from the U.S. Department of Treasury for a new venture capital program.
- The program, in partnership with the Puerto Rico Science, Technology and Research Trust, will provide capital to small businesses and startups to foster job creation and economic growth.
The Puerto Rico Economic Development Bank (EDB) has secured a $30 million allocation from the U.S. Department of Treasury for investment in emerging and expanding companies. The funding will expand the “Boost Your Business” programs under the State Small Business Credit Initiative (SSBCI), with the goal of providing capital to small businesses and startups to foster job creation and economic growth. The EDB’s success in managing funds under the Community Development Block Grant-Disaster Recovery (CDBG-DR) programs led to this allocation.
The new program, called the Venture Capital Access Program (VCAP), will be implemented in partnership with the Puerto Rico Science, Technology and Research Trust. It will focus on investing in qualified companies that have already secured private capital and undergone a formal evaluation process. The program will support private companies in early stages, including pre-seed, seed, bridge, and Series A investment rounds.
The program aims to provide access to capital for entrepreneurs who are raising or have raised investment capital, supporting their expansion and creating more businesses and jobs on the island. Selected entrepreneurs will receive support and access to resources, including those from the parallel18 business support program affiliated with the trust. The EDB will monitor the performance of companies receiving funds to ensure compliance with federal Treasury guidelines.
Overall, the program is expected to strengthen the local economy in the medium and long term, providing support to high-risk companies that do not have access to traditional financing from commercial banks. The EDB’s commitment to creating a healthy investment environment is evident in its efforts to promote economic benefits for entrepreneurs on the island.
