The US announces measures to help small businesses in Cuba

The U.S. Treasury Department announced a series of regulatory changes on Tuesday to allow for greater American financial support for small businesses private companies in Cuba, reinforce Internet services on the island and expand Cubans’ access to some financial services.

The United States will allow small business owners on the island, governed by the Communist Party, to open bank accounts in the United States and also reestablishes an authorization for so-called “U transactions,” transfers of funds that originate in the United States and end up outside. the Treasury said in a statement.

The measures would also allow Cuban entrepreneurs to use U.S. online payment platforms, a major obstacle currently facing small businesses on the island.

“Today we are taking an important step to support the expansion of free enterprise and the expansion of the business sector in Cuba,” a senior US official told reporters on Tuesday.

The measures seek to meet the goals of President Joe Biden’s administration, including a long-delayed promise to ease restrictions to help Cuba’s nascent non-state economy.

Cuban businessmen face the consequences of the communist government and its paralyzed economy, in addition to sanctions from Washington.

In crafting the measures, U.S. officials said they had difficulty balancing the goal with the desire to prevent Cuban authorities from benefiting.

The new measures would exclude Cuban military personnel, government officials, members of the Communist Party and legislators with the goal of maximizing available resources for the benefit of Cubans, officials said.

The Cuban government did not immediately respond to a request for comment on the policy changes.

Cuba has long blamed the U.S. embargo, a complicated web of laws and regulations that hamper government financial transactions, for the economic crisis that has left it few options lately to open its economy to small private businesses.

This type of business, considered taboo for decades in Cuba, is now booming on the island.

New laws implemented in 2021 have seen more than 11,000 small businesses set up in May, according to Government figures. From grocery stores to plumbing, transportation and construction companies can be seen on the island.

These companies now employ 15% of Cuban workers who represent around 14% of GDP, according to statistics from the Ministry of Economy from the end of 2023.

There were no signs that Tuesday’s announcement could herald a more significant easing of U.S. sanctions and other restrictions on Cuba.

U.S. officials would not say whether the Biden administration was conducting a formal review of Cuba’s presence on a list drawn up by Washington of state sponsors of terrorism.

“Offering this support to Cuba’s private sector will help stop irregular migration from the island by creating more economic opportunities. Additionally, it allows Cubans to be self-sufficient without depending on the government for their daily needs,” the officials said.

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