Pablo José Hernández, Resident Commissioner of Puerto Rico, has become a co-sponsor of H.R. 7229, known as the Territorial SBA Loan Guaranty Adjustment Act. The proposed legislation aims to improve access to financing for small businesses in U.S. territories.
“Small businesses are the economic engine of Puerto Rico, but they often face barriers to obtaining capital on fair terms,” Hernández said. “This bill recognizes those inequalities and creates a direct link between federal policy and economic development in the territories.”
Puerto Rico and other U.S. territories have faced long-standing challenges related to infrastructure and financing, which have been worsened by natural disasters and economic shocks. The bill seeks to address these issues by increasing the federal guarantee rate for certain loans made by the U.S. Small Business Administration (SBA) to 90 percent for businesses located in covered territories. This change is intended to reduce risk for lenders and encourage greater private investment, supporting local business expansion and job creation.
The legislation also updates the Small Business Act statute to reflect these changes while excluding specific loan categories and pilot programs from its provisions.
