ECONOMIC DEVELOPMENT BANK.

LEGAL AUTHORITY

Act. No. 22 of July 24, 1985, as amended, known as the Puerto Rico Economic Development Bank Act creates the Puerto Rico Economic Development Bank as a corporate and policy making of the Commonwealth of Puerto Rico.

MISSION

To facilitate financial products to small and medium businesses, contributing mainly to employment creation and retention and thereby supporting Puerto Rico's economic development.

VISION

To significantly contribute to Puerto Rico's economic development by establishing the foundation for the success of small and medium businesses.

ORGANIZATIONAL STRUCTURE

The Puerto Rico Economic Development Bank is part of the Puerto Rico Government Development Bank. Its corporate functions are perfomed by a Board of Directors and executed by the following organizational units:

  • Credit
  • Business Development
  • Finance and Operations
  • Risk and Compliance
  • Board of Directors
  • Legal Affairs Office
  • Internal Auditing Office
  • President's Office
  • Human Resources

GEOGRAPHIC LOCATION

The Main Office of the Economic Development Bank is in the Altamira Urbanization at Num. 638 Aldebaran Street in Ro Piedras, with additional personnel located in government offices of Caguas, Lares, Mayaguez, Naranjito and Ponce.

PROGRAMMATIC STRUCTURE

POSITIONS FILLED

Authorized and Proposed Positions 2009 2010 2011 2012
Sept./08 Sept./09 Sept./10 Feb./11 Proj.

 

Total amount of positions 170 160 146 140 140

Data comes from the Agency's Certified Headcount Reports. Figures for Fiscal Year 2011-2012 were estimated during the budget formulation process.



PROGRAM

Credit Services

Program Description

The Bank provides financing, loan guarantees and investment capital to any person, firm, corporation, cooperative, non-profit institution or other private organism that is involved in manufacturing, commerce, agriculture, tourism and services, preferably to small and medium Puerto Rican entrepreneurs.

  • Grant loans to businesses from different economic sectors that support the retention and creation of new employment.
  • Establish credit programs that respond to the needs of small and medium businesses, as well as farmers.
  • Establish and strengthen alliances with different Puerto Rico government agencies, municipalities and other private financing entities in order to develop financing programs with terms and conditions designed to attend to particular geographic areas or economic sectors.
  • Sponsor and participate in events that foster the economic development of Puerto Rico and promote the Bank's financial products.
  • Establish alliances with other governmental entities to attain the most effective use of incentives and financing provided by the government.
  • Improve and strengthen the financial conditions to continue to be self-sustaining.
  • Implement expense controls in all areas to optimize existing financial resources.
  • Promote the Bank among governmental agencies as an alternative for depositing their funds in order to broaden the sources of deposits and increase liquidity.
  • Optimize the use of available space in the building and rent out the unused space.
  • Optimize information systems so that the operations are more effective.
  • Promote loans in coordination with commercial banks.
  • Coordinate and promote the participation with private banking through the granting of loan guarantees.
  • Offer and sponsor workshops for the business community as well as for small and medium entrepreneurs.

Statistical Data 2010 2011 2012

 

Amount of loans approved 148 180 190
Approved loans 444 1,000 550
Customers served 5,196 6,000 6,000
Disbursed loans funds 85 140 150
Guarantees awarded 78 220 100
Guidance 5,196 6,000 7,000
Loan applications 844 3,000 900
Retained jobs 24,528 20,000 20,000

The figures presented were provided by the Agency during FY 2011-2012 budget preparation process.


Customers

Small and medium enterprises from all sectors of the economy, governmental agencies, commercial banks and brokerage houses.


Human Resources

Authorized and Proposed Positions 2009 2010 2011 2012

Managerial,Technical, Administrative, and Office Staff 74 73 64 67
Judges, Lawyers, and Legal Staff 8 6 6 3
Planning, Budget, Statistics, Auditing, and Finance 73 66 62 60
Public Relations and Communications 1 3 3 0
Maintenance and General Services Staff 3 2 2 2
Information Systems 8 6 6 5
Sales and Marketing Services 3 4 3 3
Total, Positions 170 160 146 140


FISCAL YEAR 2011-2012 ADOPTED BUDGET

The adopted consolidated budget for Fiscal Year 2011-2012 is $11,813,000. The funding comes from Internal Sources Revenues, mainly from the interest generated from investments and lending activities.

The operational expenses reflect an increase of $495,500 in comparison with the funding assigned for the 2010-2011 Fiscal Year. This funding has been allocated to the New Market Tax Credit project.


SUMMARY OF AVAILABLE RESOURCES

Consolidated Budget  (thousands $) 2009 2010 2011 2012

 

Program  
Operational Expenses Actual Actual Budget Adopted
Credit Services 11,882 50,890 11,318 11,813
Subtotal, Operational Expenses 11,882 50,890 11,318 11,813
Total, Program 11,882 50,890 11,318 11,813
 
Funding Sources  
Operational Expenses  
Other Income 0 40,000 0 0
Revenues from Internal Sources 11,882 10,890 11,318 11,813
Subtotal, Operational Expenses 11,882 50,890 11,318 11,813
Total, Funding Sources 11,882 50,890 11,318 11,813
 
Expense Category  
Operational Expenses  
Payroll and Related Expenses 9,247 8,382 9,040 8,800
Rent and Utilities 644 573 515 511
Purchased Services 600 636 626 656
Transportation Expenses 102 102 78 105
Professional Services 677 481 446 946
Other Expenses 374 344 370 401
Non Distributed Allocations 0 40,000 0 0
Office Supplies and other Materials 67 57 68 44
Advertising and Media Expenses 171 315 175 350
Subtotal, Operational Expenses 11,882 50,890 11,318 11,813
Total, Expense Category 11,882 50,890 11,318 11,813