Locally Solid


From a cultural perspective, we have always taken care of our own. Having a strong foundation within the local economy is not only a key element to our success as a country, it's part of our wiring.


We support all local businesses by offering an assortment of tools, programs and incentives to provide local entrepreneurs all the resources needed to make it big.


Whether for expanding or starting up a business, financing is essential. There's a range of options for small and mid-sized businesses. Our Business Development Specialists will assist you with all things related to financing, including:

  • Key steps to establishing your business
  • Available financing options at the local and federal level
  • Projections and financial statements
  • How to fill out financial documents correctly


Puerto Rico small business owners have the support of an extensive network of state, federal, and non-profit resources ready to assist with everything from business plan writing to accounting and marketing. Want to talk about your entrepreneurial idea? Read below to get started.


Start Your Business


There are three alternatives in doing business:
  • New Business: develop your own business structure and concept.
  • Buy Existing Business: once the acquisition is completed, business operations continue. A thorough analysis must be made of existing financial data, accounting, receivables, and inventory are some of the information needed to verify the business has a good track record.
  • Buy Franchise: needs a cost/benefit analysis of the franchise as well as the requirements that vary from franchise to franchise. Seek advise with a franchise consultant, if needed.

Legal Business Structure

There are few ways to organize your business. We recommend that you seek professional advice on the requirements that must be met for each business structure.
  • Individual (Sole Proprietorship)
  • Corporation
  • Partnership
  • Cooperatives & Credit Unions

Individual:
individual business that is established when a person decides to do business on their own and without any association with other persons.
  • the main advantage of a solo proprietorship is that it is the easiest and least expensive form of ownership to organize.
  • A variant of a solo proprietorship is known as“d/b/a” (“doing business as”).


Corporation

  • A Corporation is a business structure in which the company is seen as its own legal entity apart from its owners with a legal, public or private purpose, and given rights and liabilities similar to those of a person.
  • Corporations are able to buy and sell property, do contracts, bring lawsuits, and must pay taxes. In the event of bankruptcy or a law suit the company, not the owners, is held liable.
  • The major advantages of a corporation are that the personal liability of the owners is limited, and that the corporation can go on indefinitely.
  • The main disadvantage is that money earned by the corporation is taxed twice: once when the company itself claims the income and again when the shareholders claim the income.

Corporations in Puerto Rico abide by the General Law of Corporations, as amended. This statute pretends to facilitate corporate procedures and simplify permits as contemplated. The General Law of Corporations provides that a corporation can be created by one (1) person.  Different form Public corporations that are created by law, local or foreign corporations, profit or non-profit, only satisfy the purpose for which they were organized or incorporated.

For more detailed information related to the different corporations, visit:  Department of State

Partnerships
 
  • Partnership is a legal instrument  that allows to become partners in a group of persons and divide profits between them including profits and losses resulting from a business or enterprise.
  • The Civil Code of Puerto Rico defines a partnership as “a contract by which two or more people are obliged to put in common, money or goods, with the intention to divide profits between them.
  • The existence of the partnership created by the Civil Code starts the moment the contract is signed, unless there is another agreement between partners.

The Income Tax Law, was amended to create the Special Partnerships  as a new concept in doing business in Puerto Rico where double taxation is avoided. In a  Special Partnership, the entity doesn’t pay rather, the partnerships and their partners are subject to tax at the partnership level and again at the partner level to the extent the partnership makes any distributions.

 
Cooperatives & Unions

​A Cooperative is an autonomous association of a voluntary group of persons to satisfy their common economic, social, and cultural needs, by means of an enterprise that posses in conjoint  and is controlled democratically. Cooperatives are created by economic and social needs and operate as a non-profit.

Generally, cooperatives are formed by a group of eight (8) persons, except the cooperatives of workers that only require five (5).  For details on how to organize a cooperative, please visit the Commission of Cooperative Development of Puerto Rico: Commission of Cooperative Development of Puerto Rico


Market Research

The Market Research is one of the most important aspects of any business. This will not only help you know if there is a real supply and demand for the product or service you are interested in offering, but provides a specific direction of the efforts to sell or offer it, and the definition of your target market. The Market Research is a key in the planning and development of the Business Plan. The study will help to determine market share to utilize wisely the economic resources of your business.

This doesn’t guarantee the success of your business, but can increase the probabilities of succeeding because it helps estimate potential sales and avoid possible losses.

Business Plan

The Business Plan isn’t only a document in obtaining financing, is a guide to define and achieve our goals and objectives. The main purpose is to determine the viability of a business where possible risks can be avoided.
 
Although there is no specific formula to developing a Business Plan, they all have some elements in common. Remember that when you complete the plan, you will have accomplished a functional tool that will help you run your business and develop future growth plans. Most important, this plan provides the basis of the financial proposal when you search for financing alternatives; the plan is a prerequisite required by the Bank to consider granting funding to your business.
 
Here is an example: http://www.sba.gov/
 
To facilitate the preparation of financial information which requires the business plan, we urge you to call the Economic Development Bank for Puerto Rico: http://www.bdepr.org/
 
 
 Marketing Plan

The first step is to write a marketing plan that is part of your business plan. Once finished, it will help direct your business and elaborate plans for growth. The following are a few points to start using in the preparation of your Marketing Plan:
  • Determine the philosophy of your business.
  • Establish marketing goals.
  • Establish marketing budget and necessary adjustments.
  • Determine a date to achieve market goals.
  • Use resources effectively to implement strategies.
  • Develop marketing plan for next year.
Establish clearly the marketing mix: product  or service, price, place, and promotion.
 
For more information on how to develop a Marketing Plan, please visit:

 
Financing Alternatives and Other Business Resources

The alternatives for financing for small and medium businesses proceed generally from commercial banks and institutions of loans and savings. Other alternatives entrepreneurs search are for private investors. The most important aspect of any financing solicitation is to prepare a Business Plan that includes your financial projections. Below are some available resources in order to obtain general information and technical support to start your entrepreneurial journey.

Economic Development Bank for Puerto Rico (EDB)

Since it’s creation in 1985, it has offered financing alternatives maintaining a position of leadership in the supply of innovative products and services for our entrepreneurs and those who aspire in having their own business.

The BDE has a myriad of products and services that includes: Entrepreneurial  Women, New Entrepreneurs, Direct Loans, and Agricultural Credits among others. Also, alliances have been created with entrepreneurial  associations, Cooperatives, Private Banking, municipalities, and governmental agencies that help in the economic development and increase our network of distribution of products and services.

http://www.bdepr.org/

Contact: 787-641-4300 / 787-641-1BDE (1233) or Long distance, toll free: 1-866-641-4300, ext. 1025

Puerto Rico Federal Contracting Center (FECC)

The Puerto Rico Federal Contracting Center (FeCC), previously known as the Procurement Technical Assistance Center (PTAC), is a division of the Puerto Rico Industrial Development Company (PRIDCO). The FeCC is part of a nationwide network of Procurement Technical Assistance Centers that helps small businesses obtain government contracts with the Department of Defense, other federal agencies, state and federal prime contractors.

This assistance is provided at no cost to the small business owner. Small businesses (as defined by the Small Business Administration) that have a product or service needed by a government agency are welcome to apply for our services. Learn more about our services and the benefits of government contracting.

http://www.federalcontractingpr.com/


Tel. 787-758-4747, ext. 2268

Entrepreneurship (“Movimiento Empresarial”)

Multi-sector Alliance that has a mission to join efforts in communicating the resources that offer support to Small & Medium Businesses with the purpose to create and retain employment.
This Alliance is an integrated program that includes entrepreneurial training and counseling, technological resources, and financing leading in strengthening Small & Medium Businesses that are to be created or exist.


Foreign Commerce & Entrepreneurial Development Institute  (ICEDE)
The Institute designs and offers a variety of functional training courses to instruct SMEs on the latest business trends. ICEDE is accredited by the Association for Continuing Education and Training and offers over 50 kinds of training geared to improving businesspersons' capacity and knowledge on topics such as human resource management, international trade, labor laws, computer programs, and others.
 
For additional assistance or set up an orientation meeting, please contact us at our central offices in San Juan (787) 294-0101 or one of our regional offices throughout the Island.
 
 
Business Development Center-North
Telephone: (787) 878-3254 / 3262
Fax: (787) 878-4630
 
Business Development Center-Metro
Telephone: (787) 294-0101 Exts. 2116, 2117, 2118, 2119, 2120, 2166, 2170, 2769
 
Business Development Center-East
Telephone: 787-776-2966 / 3995
Fax: 787-776-2989
 
Satellite Center Ceiba
Tel/Fax: (787) 865-0110
 
Business Development Center-South
Telephone:(787) 844-0805/842-9780
Fax: (787) 259-0729
 
Free Trade Zone Administration Office
Telephone: (787) 294-0101, Ext. 4100
Fax: (787) 782-5699
 
Center for Distribution-Mayaguez
Telephone: (787) 294-0101, Ext. 3311,787-833-0245
Fax: (787) 832-7080
 
Regional Center for Distribution-Ponce
Telephone: (787) 294-0101, Ext. 3410
Fax: (787) 843-8311
 
Puerto Rico Small Business & Technology Center (SBTDC)

The SBTDC offer services in counseling and training of high quality to businesses of all sectors. In Puerto Rico, we have eight (8) centers located at: Arecibo, Fajardo, Ponce, Caguas, San Juan, and Interamerican University-Metro and Specialized Centers as Innovation & Technology Center and International Commerce Center. Its main offices are located at the Interamerican University of Puerto Rico, according to the cooperative agreement with the U.S. Small Business Administration (SBA).
For more information visit: http://www.prsbtdc.org/
Toll free : 1(888)300-7232
Tel.  (787) 763-6811
Fax: (787) 763-6875

Entrepreneurial Institute for Women (IEM)

The Institute is the principal organization in Puerto Rico that serves women that aspire in establishing their own business. Services offered are: individual assessment and training for new and established businesses.
 
Department of Labor and Human Resources  (DTRH)
The Department in its search for better services to employers in Puerto Rico has developed an Employers Services Portal. This Portal permits employers to accomplish electronic transactions directly with the Department of Labor and Human Resources without having to visit the facilities.

For more information visit: http://dtrh.gobierno.pr/index.asp or call us (787) 754-5353

Commission of Cooperative Development (CDCOOP)
 
Cooperatives occupy an important place in Puerto Rico due to its structure of cooperative economic model and social justice. We invite you to know its philosophy, services, and values. 

For more information visit http://www2.pr.gov/Agencias/cdcoop/Pages/default.aspx or call us (787)763-2097 

Governmental Development Bank for Puerto Rico (GDB)
 
Our webpage promotes the competitive and fiscal stability of Puerto Rico to transform our economy in one of the most developed, contributing to social and economic well-being of our population. We serve as bank, fiscal agent, and financial advisor of the Government of Puerto Rico.

For more information visit http://www.gdb-pur.com/index.html or call us (787) 722-2525
 
Department of Agriculture (DA)
 
The DA is responsible to implement the public agricultural policy and establish and carry-out the programmed commitments that will promote, develop, and increase the agricultural economy in Puerto Rico. Offers incentives and programs with guarantee loans to develop agriculture in a responsible way for economical feasibility and high demand.

For more information visit http://www.agricultura.gobierno.pr or call us (787) 721-2120, (787) 722-0871 
 
United States Department of Agriculture-Rural Development

USDA offers assistance through more tan forty (40) programs that includes the following areas: housing, business, infrastructure, and community facilities created to improve and stabilize the economy of our rural areas. Also, includes assistance to farmers and cattle farmers with the purpose of improving the quality of rural life. Assistance provided includes direct loans/guarantee loans, technical assistance , and educational material.

For more information visit http://www.rurdev.usda.gov/pr/ or call us (787 ) 766-5095

U.S. Small Business Administration (SBA)

The SBA since its founding on July 30, 1953, the U.S. Small Business Administration has delivered millions of loans, loan guarantees, contracts, counseling sessions and other forms of assistance to small businesses. SBA provides assistances primarily through its four programmatic functions:

Access to Capital (Business Financing)


SBA provides small businesses with an array of financing for small businesses from the smallest needs in micro-lending to substantial debt and equity investment capital (venture capital).

Entrepreneurial Development (Education, Information, Technical Assistance & Training)


SBA provides free individual face-to-face, and internet counseling for small businesses, and low-cost training to new entrepreneurs and established small businesses in over 1,800 locations throughout the United States and US territories.

Government Contracting (Federal Procurement)


In keeping with the mandate of Section 15(g) of the Small Business Act, SBA’s Office of Government Contracting sets goals with other federal departments and agencies to reach the statutory goal of 23 percent in prime contract dollars to small businesses. This office also provides small businesses with subcontracting procurement opportunities, outreach programs, and training.

Advocacy (Voice for Small Business)


Created in 1978, this Office reviews Congressional legislation and testifies on behalf of small business. It also assesses the impact of the regulatory burden on behalf of small businesses. Additionally, it conducts a vast array of research on American small businesses and the small business environment. The Chief Counsel of this office is appointed by the President of the United States.
The SBA, through its Small Business Training Network (SBTN) provides  a virtual campus offering on-line courses , publications, and other forms of technical assistance.
http://archive.sba.gov/training/
 
For more information visit http://www.sba.gov/ or call us (787) 766-5572
 

Corporation for the Economic Development in San Juan (COFECC)

COFECC is a non-profit organization, founded in 1982 with the purpose to promote economic development for the municipality of San Juan. Today, COFECC is a “Certified Development Company” (CDC) authorized by the U.S. Small Business Administration (SBA) to administer their different loan programs throughout Puerto Rico.
For information visit http://www.cofecc.net/ or call us (787) 756-5080, (787) 753-4585

Minority Business Development Agency (MBDA)

MBDC is operated by the Products Association of Puerto Rico covering all Puerto Rico, including Vieques and Culebra, under a cooperative agreement with the U.S. Department of Commerce through the Agency for the Development of Minority Businesses.

For more information visit http://www.puertoricombc.com or call us (787) 753-8484
 
Other Resources:
There are many resources that you can take advantage of in your journey to become an entrepreneur and have your own small or medium Enterprise. Below, we have compiled some links that you may find useful.
 

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