The U.S. government through the State Department will make available $98.5 in financing for small-to-medium sizes businesses in Latin America.
The program coordinated through the U.S. Agency for International Development and three private banks aims to help Latin America create jobs and encourage entrepreneurship. Mexico will be the largest benefactor of the private financing set to receive $60 million in local financing followed by El Salvador that will receive $25 million.
The U.S. government estimates 4,000 small businesses will be helped through the financing partnership. The program will allow local businesses to secure financing under more favorable terms that include reduced collateral and longer repayment schedules.
The U.S. will act as credit guarantor on these loans at the banks participating in the program.