The Small Business Administration (SBA) is offering loans of up to $2 million to small businesses and organizations in Puerto Rico affected by the drought. The Economic Injury Disaster Loan (EIDL) program was enabled after federal disaster declarations due to drought in Puerto Rico. Eligible entities that have suffered economic losses as a direct result of the water shortage can apply for the loans, which can be used as working capital to cover operational expenses such as payroll, rent, and utilities.
The loans have a fixed interest rate of up to 4% and terms of up to 30 years, subject to SBA evaluation and approval. Morsom Group will provide guidance to interested businesses and organizations, including a preliminary eligibility assessment, document organization, and support during the application process. Soemi Morales González, a consultant at Morsom Group, stated that the company is committed to helping applicants identify their eligibility and submit a solid and well-supported application.
To apply for the financing, businesses must demonstrate the relationship between the drought and the economic impact suffered, as well as organize the necessary financial information and evidence to support the application. Initially, the financing was available to businesses and organizations in 26 municipalities, but the US Department of Agriculture has since expanded the disaster declarations to cover 38 municipalities.