Economy Finance Resources

A Miami bank receives $250M from the US Treasury to make loans to minority-owned small businesses

Banesco USA will be offering low-interest commercial loans to Miami-area companies, mainly minority-owned small businesses.

The Coral Gables-headquartered bank, which focuses on commercial lending in South Florida and Puerto Rico, received a $250 million capital injection from the U.S. Treasury. With that money it will increase lending to small and large businesses, particularly those owned by minorities.

The funds are part of the Emergency Capital Investment Program, which supports minorities most economically affected by the ongoing Covid-19 pandemic. Calixto García-Vélez, CEO of Banesco USA, told the Miami Herald that Banesco is the only bank in Florida to receive the funding. “We understand that it is a vote of confidence from the government in our institution,” he said.

The Greater Miami area  has more companies with fewer than 50 employees than anywhere in the country, and they are being hurt by inflation and rising commercial rents, he said. With the money from the Treasury, Banesco will be offering lower interest loans over 10 years, which can be used by business owners to invest in their business, buy new equipment, acquire a new location or improve the one they already have. To qualify for the new lending program, a company must have been operating for at least two years and meet other standard commercial lending requirements. These loans will have no size limit, he said.

Banesco has branches in  Hialeah, Aventura and Brickell, and a new one opening in Doral.

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