In a pivotal meeting held on December 6, 2024, the Puerto Rico Department of State unveiled significant strides made by the Banco de Desarrollo Económico (BDE) in revitalizing its operations and enhancing its role as a key financial institution for small and medium enterprises (PyMEs) across the island. The discussions highlighted the bank's strategic alliances and financial recovery efforts, which have positioned it as a competitive player in the market while distancing it from potential closure risks posed by the fiscal oversight board.

The BDE's transformation began with the establishment of strategic partnerships with various professional associations, government entities, and community organizations. These collaborations aim to provide financial education and training, ultimately fostering the growth of new PyMEs. Notable alliances include partnerships with the Puerto Rico Builders Association, the Restaurant Association, and the Chamber of Commerce, among others. This network not only enhances the bank's outreach but also strengthens its commitment to supporting local businesses.

Financially, the BDE has made remarkable progress, turning a negative capital of $16 million in 2021 into a positive capital of $135 million by the end of the fiscal year 2023. This turnaround is attributed to effective debt restructuring and improved administrative spending. Additionally, the bank reported a staggering 216% growth in its loan portfolio compared to the fiscal year 2019-2020, reflecting a robust commitment to lending and client engagement.

The meeting also addressed the reduction of the bank's delinquency rate, which plummeted from 18% in 2020 to 7% in 2024, further stabilizing its financial standing and ensuring ongoing support for entrepreneurs. The BDE has also been instrumental in disbursing Community Development Block Grant Disaster Recovery (CDBG-DR) funds, with over $260 million allocated for reconstruction efforts following hurricanes Irma and Maria. This funding has resulted in the retention of over 30,000 jobs and the creation of more than 16,000 new positions across various sectors.

Moreover, the BDE has been recognized for its effective use of federal funds, receiving $109.3 million from the Treasury's State Small Business Credit Initiative. This funding is expected to bolster lending to entrepreneurs and could potentially grow to $1 billion over the next decade. The bank's initiatives, including technical assistance programs and venture capital investments, are designed to empower local businesses, which constitute 95% of establishments in Puerto Rico.

As the meeting concluded, the emphasis on the BDE's ongoing transformation and its commitment to fostering economic development resonated strongly. The bank's proactive measures not only aim to support existing businesses but also to cultivate a thriving environment for future entrepreneurs, ensuring a resilient economic landscape for Puerto Rico.