Only 26 businesses have applied for the $5,000 water crisis incentive - how to apply before funds run out

One week after the Department of Economic Development and Commerce (DDEC) launched its Economic Recovery Incentive Program, only 26 small and medium businesses have applied for the up-to-$5,000 per establishment grant ¹. Secretary Carlos Rios Pierluisi confirmed the figure on Tuesday, acknowledging that participation has fallen far short of expectations amid an emergency that has left 15 municipalities dealing with water rationing since June ².

The number is alarming: thousands of businesses in San Juan, Bayamon, Carolina, Caguas, and eleven other municipalities have spent two months buying bottled water, renting cisterns, losing perishable inventory, and shutting down on rationing days. Yet the vast majority have not touched the only state program designed to cushion that financial blow.

Why so few have applied

The problem is not lack of need -- business sector organizations have reported millions in losses from the water crisis ¹. According to commercial sources, barriers include the volume of required documentation, the need to be current with the Treasury, CRIM, and ASUME, and the fact that many small merchants simply do not know the program exists.

To qualify, the business must generate annual sales of $350,000 or less, have a maximum of 25 full-time employees, be actively operating in an affected zone, and not have received other government funds for the same expenses ³. No prior SME certification from DDEC is required.

The numbers that matter

• $5,000 maximum per commercial establishment ²
• 26 applications received in the first week ¹
• 15 eligible municipalities: San Juan, Bayamon, Guaynabo, Canovanas, Carolina, Corozal, Loiza, Naranjito, Trujillo Alto, Vega Alta, Gurabo, Aguas Buenas, Juncos, Rio Grande, and Caguas ³
• From June 1 onward, eligible expenses are covered ³
• $10,000 in fines per violation of the DACO price freeze order, which complements this program ⁴

Covered expenses include bottled water or water truck purchases, storage tank rental or acquisition, inventory and perishable product losses, facility disinfection and restoration, and other emergency operational costs approved by DDEC ³.

What this means for you

If you own a small business in any of the 15 affected municipalities, this money exists for you and almost nobody is claiming it. Five thousand dollars will not cover all losses, but it can pay for several weeks of bottled water, an emergency cistern, or replace part of the inventory that was damaged.

The program operates on a first-come, first-served basis until funds are exhausted. With only 26 applications so far, the window is wide open -- but that could change quickly once word spreads. Water rationing has no end date, so the sooner you apply, the better.

For consumers: DACO Administrative Order 2026-006 freezes prices on water, ice, cisterns, and related services ⁴. If you see a business charging more than normal, you can report it at 787-722-7555.

How to do it / Checklist

1. Verify your municipality is on the list of the 15 eligible ones (San Juan, Bayamon, Guaynabo, Canovanas, Carolina, Corozal, Loiza, Naranjito, Trujillo Alto, Vega Alta, Gurabo, Aguas Buenas, Juncos, Rio Grande, Caguas).
2. Gather the required documents: Merchant Registration Certificate (Treasury), latest quarterly withholding return, five-year filing certification, no-debt certifications from Treasury, CRIM, and ASUME, municipal business license, valid photo ID, Single Permit or consultation letter ³.
3. If you are a corporation, add: State certification, good standing certificate, IRS EIN letter, and corporate resolution authorizing the representative.
4. Document your expenses since June 1: keep water invoices, cistern receipts, photos of damaged inventory, cleaning or disinfection contracts.
5. Go to the Single Business Portal at www.sbp.pr.gov and submit the application with all documents.
6. Wait for the evaluation: a committee reviews your case and notifies you in writing whether it was approved or denied.
7. Sign the contract through the DDEC electronic platform and receive the disbursement by electronic transfer.
8. If you have questions, call (787) 765-2900 or (787) 758-4747.

What comes next

The DDEC has not set a deadline for the program -- it will remain available until funds are exhausted or the emergency ends, whichever comes first ³. With water rationing still active in Canovanas and Rio Grande ⁴ and reservoirs under watch, the crisis shows no signs of ending soon.

The DDEC is expected to ramp up promotion of the incentive given the low participation. Local chambers of commerce and business associations could be key to spreading the word among the merchants who need it most. Meanwhile, every day without applying is another day of losses that could be covered.

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Sources

¹ El Nuevo Dia, "Poca acogida al incentivo para negocios afectados por fallas en el sistema de agua potable," August 4, 2026

² Metro Puerto Rico, "Hasta $5,000 para pymes afectadas por la crisis de agua: verifica si cualificas," July 28, 2026

³ Department of Economic Development and Commerce, Administrative Order DDEC 2026-03, desarrollo.pr.gov/incentivoaguapymes

⁴ Primera Hora / DACO, "DACO congela los precios de articulos y servicios de primera necesidad ante escasez de agua," August 1, 2026