Esta ley establece un Fondo Especial en el Banco de Desarrollo Económico para Puerto Rico para otorgar préstamos de emergencia a pequeñas empresas del sector turístico (posadas, pequeños hostales, agencias de viajes y compañías de tours con ventas brutas menores a $2 millones anuales). Los préstamos, de hasta $25,000, son para pago de nómina, con un interés máximo de 2.25% sobre la tasa preferencial, a un plazo máximo de 7 años con un año de moratoria. Pueden ser garantizados hasta en un 85% por la Administración Federal de Pequeñas Empresas. Se autoriza al Banco de Desarrollo Económico y al Banco Gubernamental de Fomento a capitalizar el fondo inicialmente con $500,000, que serán igualados con una asignación especial de la Legislatura para alcanzar $1 millón. El Banco de Desarrollo determinará la duración del fondo y presentará informes anuales a la Legislatura.
(Approved January 5, 2002)
To direct the Economic Development Bank for Puerto Rico to establish a Special Fund for emergency loans to small businesses of the tourism sector of Puerto Rico including Inns, small hostelries, travel agencies and tour companies with gross sales of less than two (2) million dollars annually. Said loans shall be used for the payment of payrolls up to a maximum of twenty-five thousand $(25,000)$ dollars and which loans shall be made at a maximum interest of two point twenty-five (2.25) percent over the prime rate for a maximum term of 7 years and with a moratorium during the first year, to help said companies overcome the present crisis. Said loans may be secured up to an eighty-five (85) percent by the Federal Small Business Administration. The Economic Development Bank for Puerto Rico and the Government Development Bank are hereby authorized to create the mechanisms needed to grant the Fund the sum of five hundred thousand $(500,000)$ dollars as initial capitalization. These funds shall be matched with a Special Appropriation of the Legislature from unencumbered funds so that the fund reaches the sum of one million $(1,000,000)$ dollars.
The crisis suffered by the travel and tourism industry at a world level as a result of the events of September 11, 2001 in New York City and Washington has brought about a reduction in trips for fear of terrorist attacks. This is jeopardizing the survival of small Puerto Rican businesses among which are hostelries, travel agencies and tour operators. The lack of financial liquidity has caused mass dismissals that in the hotel sector exceed 1500, and that in the immediate future shall force hotels to further reduce
their workforce and inclusively, to cease operations, if it is not granted emergency loans to help their liquidity.
Commercial banks, in the cases of the small businesses mentioned, are fearful of granting loans because of the uncertainty of the present situation, which in turn worsens the crisis by contributing to an economic contraction that forces the public sector to adopt emergency measures to prevent the closing of these work centers.
On the other hand, the Federal Small Businesses Administration offers a guarantees program of up to eighty-five (85) percent in loans of up to 7 years with a two point twenty-five (2.25) percent interest over the prime rate, while at the Congress, a bill is being considered that would extend emergency loans to the tourism sector, including travel agents.
Section 1.- To direct the Economic Development Bank for Puerto Rico to establish a Special Fund for emergency loans to small businesses of the tourism sector of Puerto Rico including Inns, small hostelries, travel agencies and tour companies with gross sales of less than two (2) million dollars annually. Said loans shall be used for the payment of payrolls up to a maximum of twenty-five thousand $(25,000)$ dollars and which loans shall be made at a maximum interest of two point twenty-five (2.25) percent over the prime rate for a maximum term of 7 years and with a moratorium during the first year, to help said companies overcome the present crisis. Said loans may be secured up to an eighty-five (85) percent by the Federal Small Business Administration.
Section 2.- The Economic Development Bank for Puerto Rico and the Government Development Bank are hereby authorized to create the mechanisms needed to grant the Fund the sum of five hundred thousand
(500,000) dollars as initial capitalization. These funds shall be matched with a Special Appropriation of the Legislature from unencumbered funds so that the fund reaches the sum of one million $(1,000,000)$ dollars.
Section 3.- The Development Bank shall determine the reasonable time during which this Fund shall remain active, since it is one of emergency nature.
Section 4.- The Development Bank shall submit an annual report on loans granted and the financial situation of the Fund to the Legislature.
Section 5.- This Act shall take effect immediately after its approval.
I hereby certify to the Secretary of State that the following Act No. 16 (H.B. 1805) of the $2^{ ext {nd }}$ Session of the $14^{ ext {th }}$ Legislature of Puerto Rico:
AN ACT to direct the Economic Development Bank for Puerto Rico to establish a Special Fund for emergency loans to small businesses of the tourism sector of Puerto Rico including Inns, small hostelries, travel agencies and tour companies with gross sales of less than two (2) million dollars annually, has been translated from Spanish to English and that the English version is correct.
In San Juan, Puerto Rico, today $12^{ ext {th }}$ of December of 2003.
Elba Rosa Rodríguez-Fuentes Director