Corporate & Financial Services

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Auto loans are the third largest source of outstanding household debt after mortgages and student loans.  Those loans should be administered fairly without discriminatory practices.

The Consumer Financial Protection Bureau (CFPB) recently gave notice to lenders that offer auto loans through dealerships that they are responsible for any unlawful or discriminatory pricing.  The CFPB reported that discriminatory markups in auto lending may result in tens of millions of dollars in consumer harm each year.Continue Reading CFPB to Crack Down on Disrcriminatory Car Loans

The Federal Deposit Insurance Corporation (FDIC) and U.S. Small Business Administration (SBA) recently announced new resources to support small businesses across the nation and the U.S. Virgin Islands.  FDIC Director for Depositor and Consumer Protection Mark Pearce and SBA’s Deputy Associate Administrator for Entrepreneurial Development Michael Chodos released Money Smart for Small Business, a training curriculum for new and aspiring business owners.  Developed in partnership between both agencies, this curriculum is the latest offering in the FDIC’s 10 year old award-winning Money Smart program.Continue Reading FDIC and SBA Offer Support for New and Aspiring Entrepreneurs

As of the first day of 2012, U.S. Virgin Islands domestic corporations can have fewer than three directors, making it easier for smaller companies to establish themselves, the Office of the Lieutenant Governor announced Monday. V.I. law’s previous requirement of a minimum of three directors has historically placed a burden on some smaller companies, especially where there is a single owner who must coordinate management decisions with directors who have no financial stake in the enterprise.

 

Continue Reading U.S. Virgin Islands Corporations Allowed Fewer Directors

One place,  known for its Appalachian Mountains and rich coal supply,  was immortalized in John Denver’s 1970s hit, “Take Me Home, Country Roads.” The other has white sandy beaches, rum distilling and an average January high temperature of 86 degrees that attracts millions of tourists each year. From economy to climate, West Virginia and the U.S. Virgin Islands are as different as any two places in the United States. But that hasn’t stopped them from discussing whether to work together to form a health insurance exchange under the federal health care law, say officials in West Virginia and the U.S. Virgin Islands.Continue Reading U.S. Virgin Islands Discusses Joint Insurance Exchange with West Virginia

With the holidays over and a new year upon us, it is a natural time for business owners to map out strategies and goals for the next twelve months. Doing so allows businesses a chance to focus their energies on having a successful 2012 and gives them a metric by which to measure their successes and locate opportunities for improvement at the end of the year. Here are three suggestions that will assist businesses in planning for the year aheadContinue Reading New Years Tips for Business Owners

Most small business owners in the Virgin Islands are too busy building and maintaining their businesses to devote much time or energy to planning for their disposition. The difficulty with this approach is that the decision to sell the business is often made under circumstances, such as physical or fiscal illness, “battle fatigue,” or other circumstances that require a prompt disposition. Year after year, as the tourist season draws to a close, many local businesses consider their options.   As a rule of thumb, the more promptly your business has to be sold, the less likely it is that you, the owner, will receive a price commensurate with the asset you are selling – and for many of us – our business represents the sum of our life’s effort.Continue Reading Selling Your Island Business

There are significant legal restrictions on how you can solicit investors. Federal and U.S. Virgin Islands securities laws require that any stock, limited liability company membership interest, note, or similar investment that you sell to raise capital for your business must be either registered with the Securities and Exchange Commission and the Virigin Islands Division of Banking & Insurance or be exempt from registration.

There are limitations on how you can solicit investors and who may invest if you are relying on an exemption from registration. So your first step before talking to any prospective investors should be to meet with your legal counsel to learn the rules of the game.Continue Reading Raising Capital in the U.S. Virgin Islands

 

First BanCorp (the “Corporation”) (NYSE: FBP), the bank holding company for FirstBank Puerto Rico (“FirstBank” or “the Bank”), announced earlier today that it has entered into an agreement with two funds managed by Oaktree Capital Management, L.P. (together “Oaktree”) under which Oaktree would purchase an aggregate of approximately $175.5 million of common stock of the Corporation at a per share price of $3.50. The Oaktree investment will represent 24.9% of the outstanding shares of the Corporation’s common stock upon completion of the capital raise and the conversion into common stock of the $424.2 million of Series G Mandatorily Convertible Preferred Stock (“Series G Preferred Stock”) held by the United States Department of the Treasury.

Continue Reading First BanCorp Announces Agreements for Capital Commitments

The USVI attracts many businesses to its shores by offering generous tax incentives to qualifying companies that are approved by the Economic Development Commission (“EDC”). However, fewer people seem to be aware that those same benefits—90% reduction in income tax liability; 100% exemption on real property taxes, gross receipts taxes, and excise taxes, and a reduction in customs duties—are available to technology-based businesses through partnership with the University of the Virgin Islands Research and Technology Park the (“Technology Park” or “Park.”)Continue Reading Tech Park Can Offer Investors Savings and Simplicity