Banesco USA in Miami receives $250 million from the Treasury for small business loans

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title=wpil_keyword_linkbusiness loans to Miami-area businesses, primarily minority businesses, with $250 million from the US Treasury. Photo from the AP file.” title=”Banesco USA will provide low-interest business loans to Miami-area businesses, primarily minority businesses, with $250 million from the US Treasury. Photo from the AP file.” loading=”lazy”/>

Banesco USA will provide low-interest business loans to Miami-area businesses, primarily minority businesses, with $250 million from the US Treasury. Photo from the AP file.

PA

Banesco USA, a Miami bank focused on commercial lending in South Florida and Puerto Rico, received a $250 million capital injection from the U.S. Treasury that will allow it to increase lending to small and large companies, especially those owned by minorities.

The funds are part of Emergency Capital Investment Program, which supports minorities economically most affected by the current Covid-19 pandemic.

“We are the only bank in Florida and Puerto Rico chosen for this investment, and we understand that this is a government vote of confidence in our institution,” said Calixto García-Vélez, CEO. from Banesco USA, to el Nuevo Herald. .

Banesco, headquartered in Coral Gables and with branches in Hialeah, Aventura and Brickell, and San Juan, Puerto Rico, meets the requirements for distribution of funds in 10-year business loans.

With us inflation runs at 9.1% in June and the Federal Reserve’s second 0.75% increase in interest rates in two months, companies need financial assistance.

The The Greater Miami area is the one with proportionally the most companies with less than 50 employees in the country, and small businesses are the most affected by the ongoing pandemic. While many have since experienced a strong recovery, others are suffering from inflation and rising commercial rents.

García-Vélez said Banesco specializes in commercial loans and providing direct, personalized attention to Miami businesses.

With the money from the Treasury, Banesco will offer low-interest loans, which can be used by business owners to invest in their business, buy new equipment, acquire a new location or improve the one they own. already.

“The government gave us this capital at a lower cost, and they want us to put this money to work for our communities, so that we can offer a lower interest rate,” García-Vélez said.

The executive explained that there is a strong demand from small and medium entrepreneurs, as well as professionals such as dentists, doctors and lawyers, to obtain mortgages or lines of credit.

To qualify for the new loan program, a business must have been operating effectively for at least two years and meet other standard business loan requirements.

These loans will have no size limit. It doesn’t matter if it’s $50,000 or $20 million, the Banesco executive said.

The small bank known for serving small businesses plans to open another branch in Doral.

“We want to help small businesses navigate the financial system,” García-Vélez said. “We can come to your office if needed.”

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