AGP Executive Report

Workforce Development: Puerto Rico’s DDEC approved $999,975 in WIOA funds for Nuestra Escuela Inc.’s “Construyendo Nuestro Futuro,” a pilot to help 75 young people finish high school and build job skills in Caguas, Loíza and nearby municipalities. Financial Inclusion: The U.S. Treasury cleared nearly $9.8M for 17 Puerto Rico credit unions via the CDFI Fund, including $8.8M for technical assistance and $698,954 for small-dollar lending. Retail Pulse: DDEC reported July retail sales of $4,410.5M (+1.1% year over year) and 133,100 salaried retail jobs, with standout gains in electronics, convenience stores and hardware. Energy/Tech Funding: The Financial Oversight and Management Board approved $26.5M for special education transportation and to renew Microsoft 365 and Azure services for government agencies. Business Expansion: Autocare opened a $6M automated car wash center in Santurce (up to 1,000 vehicles daily) and plans another site in Bayamón by year-end. Hospitality Investment: Nobu announced its first Puerto Rico hotel and restaurant in San Juan, a 50-room project targeting a 2028 opening. Legal/Competition: A federal judge refused to dismiss Puerto Rico rebar price-fixing claims brought by construction firms and consumers.

Antitrust & Construction: A Puerto Rico federal judge rejected efforts by steel rebar companies to dodge price-fixing claims, pointing to instant messages tied to the alleged scheme and keeping indirect-buyer arguments in play. Energy & Public Finance: LUMA warned of a deepening liquidity crisis and sought a $30M emergency reserve, while PREPA bondholder fights continue in federal court. Maritime Trade: Trailer Bridge signed a three-year tug agreement with Curtin Maritime to improve schedule reliability on its Jones Act service between Jacksonville and San Juan. Business & Labor: Puerto Rico SMEs are adopting basic AI to improve operations, and the island’s cooperative movement is set to convene leaders to map the next phase of growth. Real Estate & Investment: Tyler Perry listed his $57M Beverly Hills mansion as he prepares to relocate to Puerto Rico in 2027, signaling continued high-profile capital interest in the island. Health & Consumer Watch: A federal generic-drug settlement is prompting eligible consumers to file claims, while an FDA recall update flagged a high-risk salad dressing contamination issue. Local Economy & Services: Puerto Rico tourism reps met to boost coordination and define goals, and a hospice industry study estimates $142M in economic activity tied to the sector.

Tourism & Hospitality: Nobu announces Nobu Hotel and Restaurant San Juan, its first Puerto Rico venture, slated to open in 2028 with a rooftop lounge and street-level dining. Local Business & Jobs: Lares reels after Eagle Industries del Caribe shuts down, leaving 300 workers without jobs, while the mayor says new garment-boot manufacturing plans could restart hiring by early 2027. Energy & Resilience: PREPA bankruptcy enters a new phase as bondholder fights continue, keeping Puerto Rico’s power-sector restructuring in focus. Trade & Regional Connectivity: Dominican Republic’s Paliza pitches port and logistics upgrades to expand global trade, including potential energy links with Puerto Rico. Public Health: FDA assigns the highest-risk Class I recall to Salata Salad Kitchen Jalapeño Avocado Dressing over possible Salmonella contamination. Tech & Defense: NRL demonstrates autonomous sonar at Vieques to locate unexploded ordnance, a step toward real-world maritime security operations. Finance & Healthcare: CMS grants Transitional Pass-Through status for Lantheus’ PYLARIFY TruVu PET imaging, improving Medicare outpatient reimbursement. Culture & Media: Siesta Entertainment picks up worldwide sales rights for Puerto Rican preschool series Rockolandia Las Cabritas, aiming for global distribution.

Tourism Coordination: The Puerto Rico Chamber of Commerce convened 50+ tourism players to set priorities and improve coordination with the Puerto Rico Tourism Company and Discover Puerto Rico, aiming for a lasting private-public platform. Energy & Business Risk: A First Circuit ruling upheld key parts of the PREPA bondholder fight, keeping subordination of an $8.5B claim in place—another signal for how the island’s energy restructuring could shape future financing. Co-op Sector Strategy: Banco Cooperativo hosted a forum with 160+ cooperative leaders to discuss geopolitical, demographic, and financial risks and how credit unions should adapt their strategy. Hospital Expansion: Mennonite Health System broke ground on a $51.8M expansion in Aibonito, adding medical space and capacity supported largely by federal CDBG-MIT funds. SME Growth: Puerto Rico SMEs are adopting basic AI tools to improve operations, reflecting a push toward productivity gains in local business. Local Hospitality Investment: Puerto Rico broke ground on a $6.1M Hotel Ojo de Agua in Rincón, adding to the island’s hospitality pipeline. Food & Community Commerce: Isabela Tiene Sabor returns Nov. 7-8 with 12+ restaurants, artisans, and live entertainment—another boost for local operators ahead of peak season.

Sustainable Tourism in El Yunque: Cornell’s CSGE and the U.S. Forest Service mapped “low volume, high value” business opportunities around PR-186, spotlighting adventure, ecotourism, education and wellness to help communities recover from recent disasters. Electricity Costs for Restaurants: ASORE warns a power-rate hike could raise restaurant electricity bills by 25%–30%, translating to as much as $1,100 more per month, squeezing already tight margins. Puerto Rico Energy & Housing Signals: PREPA is moving ahead on a 400MWh Yabucoa battery contract, while a separate push for affordable housing highlights how public funding can unlock new supply. SME Growth Push: CUD is promoting expansion of Puerto Rican small businesses across the Caribbean, aiming to widen markets and revenue. Healthcare Fraud Watch: FinCEN flagged about $17.5B in suspicious activity tied to healthcare fraud, reinforcing new compliance pressure on financial institutions. Maritime Safety: A boat capsized near Mona Island; at least 40 were rescued and two died, with more missing as searches continue. Corporate Transparency Act Update: A final rule keeps U.S. companies and U.S. persons exempt from beneficial ownership reporting under the CTA, clarifying ongoing compliance expectations.

Puerto Rico Energy & Infrastructure: Governor Jenniffer González-Colón announced FEMA has obligated $87.1M for 47 reconstruction projects, including $38.0M for PREPA street-light modernization and $9.2M for the Punta Santiago Pier in Humacao. Energy Contract Dispute: Puerto Rico sued NFEnergía (Fortress Energy) to force an alternative natural gas supply mechanism after Units 5 and 6 at San Juan shifted to diesel on Sept. 16. Local Business & Tech: Puerto Rico SMEs are adopting basic AI tools to improve operations, while autonomous construction equipment is being used on a major airport runway project in Aguadilla. Governance & Autonomy: Advocates in New York rallied for three Avilés resolutions targeting predatory debt buying, the unelected “La Junta,” and displacement tied to the Esencia luxury project in Cabo Rojo. Consumer/Health & Services: TestWell launched a free blood test price index comparing all-in costs across 12 providers, and the FDA approved Lilly’s once-weekly basal insulin Onswik for adults with type 2 diabetes. Culture & Community: UrbanTheater Company leader Ivan Vega received a Leaders for a New Chicago award for decades of Puerto Rican storytelling in Chicago.

Energy & Infrastructure: PREPA’s governing board authorized a 100MW/400MWh four-hour battery contract for Yabucoa Energy, moving the project through procurement after the Puerto Rico Energy Bureau required contractual corrections and long-term capacity conditions; the deal still needs review by the Financial Oversight and Management Board before execution. SME Tech Adoption: The United Retailers Center (CUD) says Puerto Rico SMEs are using AI at a basic level—mainly for simple questions and research—while “agentic” automation is still not widely implemented. Tourism & Housing Development: Puerto Rico broke ground on the $6.1M Hotel Ojo de Agua in Rincón, funded with CDBG-DR money, targeting 16 rooms and about 46 direct jobs over an estimated 365-day build. Fintech & Payments: Arival Bank launched a new Visa card platform that lets customers spend from a single USD balance funded by both crypto and fiat, powered by Rain’s stablecoin payments tech. Business & Capital Markets: Shareholder-rights firm SBS Law reminded investors about a Flotek Industries securities fraud class action tied to Flotek’s Puerto Rico Electric Power Authority (PREPA) power generation project; the lead-plaintiff deadline is Oct. 26. Disaster Readiness: Grainger’s fifth annual Bucket Build will deploy disaster relief kits to communities including San Juan, Puerto Rico.

Banking & Regulation: Puerto Rico’s OCIF ordered the closure of Banex International Bank, citing more than $18M in uncollected receivables tied to its sole shareholder, over $24M in funds not located or confirmed, liquidity shortfalls, and serious reporting/accounting deficiencies. Energy & Oversight: A First Circuit ruling backed the Oversight Board in the PREPA bondholder fight, upholding the subordination of an $8.5B claim and limiting what bondholders can expect from the central government. Small Business Growth: Centro Unido de Detallistas (CUD) says it will push Puerto Rico SMEs to expand across the Caribbean, aiming to open new growth opportunities for local retailers. Local Business & Culture: McDonald’s Puerto Rico launched “K-Pop Demon Hunters” meal combos with collectible cards and in-store card-trading events across multiple municipalities. Tourism & Travel: The Puerto Rico Tourism Company sent documents tied to the Miss Universe 2026 agreement as the pageant’s governance fight continues. Tech/Health Industry: Vicapsys Life Sciences completed a reverse merger with Stateline Distributors of Puerto Rico and signed an agreement to acquire NitroMist, building a vertically integrated pharma platform.

Puerto Rico SME Expansion: Centro Unido de Detallistas (CUD) says it will push growth and expansion opportunities for Puerto Rican small and medium-sized businesses across the Caribbean, aiming to open new markets and partnerships. Energy & Governance Watch: A new report raises fresh concerns about Puerto Rico’s energy leadership, alleging Energy Czar Josué Colon Ortiz pressured staff to sign a nearly $6B grid deal despite doubts about the business group involved—adding heat to the island’s ongoing power-sector cleanup. Banking Shock: Puerto Rico’s financial regulator, OCIF, ordered the closure of Banex International Bank, citing liquidity shortfalls and major accounting issues, including large receivables tied to the sole shareholder. Tourism & Pageant Fallout: Puerto Rico’s Tourism Company delivered documents tied to the Miss Universe 2026 agreement as the Miss Universe-Nawat dispute escalates, with Nawat Itsaragrisil publicly withdrawing from the pageant fight. Local Business & Jobs: Claro launched a fiber optic campaign, while Puerto Rico truckers warned of service cuts if fuel surcharges aren’t paid—both tied to cost pressures affecting everyday commerce. Culture & Community: A Puerto Rican film, “Esta Isla,” is set to arrive in Connecticut with talks on identity and belonging, as Hispanic Heritage Month programming continues.

SME Growth Push: Centro Unido de Detallistas (CUD) says it will promote expansion of Puerto Rican small and medium-sized businesses across the Caribbean, aiming to open new markets for local retailers. Manufacturing Investment: Customed Inc. will invest $12 million in Fajardo to expand medical-product sterilization capacity, adding 35 jobs and boosting the island’s supply-chain capability for device manufacturers. Tourism vs. Miss Universe Dispute: The Puerto Rico Tourism Company issued a cease-and-desist letter to Nawat Itsaragrisil, challenging statements tied to Miss Universe 2026 and the handling of public funds. Energy Governance Scrutiny: Puerto Rico’s energy czar Josué Colon Ortiz faces fresh misconduct allegations involving emails ahead of a nearly $6 billion grid agreement deadline, raising questions about contract pressure and oversight. Local Business & Community: Puerto Rico’s business ecosystem also gets a cultural boost as Hispanic Heritage Month programming highlights Puerto Rican music and entrepreneurship, including CRECE at Kean University.

Energy & Governance: Puerto Rico’s energy czar Josué Colon Ortiz faces fresh scrutiny over reports that he urged subordinates to “make sure the contract gets signed” as a nearly $6 billion grid deal neared an August deadline. Tourism & Legal Fight: The Puerto Rico Tourism Company issued a cease-and-desist to Miss Universe figure Nawat Itsaragrisil, disputing his claims about the pageant’s corporate structure and the handling of public funds. Business Expansion: Customed Inc. will invest $12 million in Fajardo to expand medical-product sterilization capacity, creating 35 jobs. Public Finance & Oversight: A First Circuit ruling upheld the Oversight Board in the PREPA bondholder fight, keeping subordination of an $8.5B claim intact. Corporate/Finance Watch: Puerto Rican bank executive Tomás Niembro Concha was sentenced to 112 months for $24.9M fraud and Venezuela sanctions evasion, underscoring DOJ focus on executive accountability. Local Economy & Jobs: CUD presented a plan to expand growth opportunities for Puerto Rico’s small businesses. Culture & Identity: The independent film “Esta Isla” is set for screenings in Connecticut exploring Puerto Rican identity amid economic hardship.

Puerto Rico Business & Economy: Small-business push: The United Retailers Center (CUD) unveiled its 2026-2028 “Fomento Local” plan to back Puerto Rico’s small and midsize firms, expand growth opportunities, and reduce barriers to doing business, including cross-border expansion and e-commerce. Energy & finance: PREPA bond fight: A First Circuit ruling upheld the Oversight Board’s position in the PREPA bondholder dispute, keeping subordination intact in the $8.5B claim. Health policy with budget impact: Medicaid drug pricing reform: CMS advanced its GENEROUS Model, with all states and Puerto Rico applying and 40 signing—potentially reshaping Medicaid net drug prices and coverage terms. Corporate/legal risk: Clorox recall suit: Puerto Rican buyers sued Clorox in federal court over the recall of 6.3M bottles of Mistolin and Lestoil cleaners tied to bacterial contamination risk. Securities & Puerto Rico contracts: Flotek class actions: Multiple investor-rights notices target Flotek over alleged nondisclosure tied to a $400M Puerto Rico Electric Power Authority project, with key lead-plaintiff deadlines in late October. Tourism governance: Miss Universe dispute escalates: Puerto Rico’s Tourism Company sent a cease-and-desist letter to Miss Universe franchise figure Nawat, alleging misleading claims about public money and contracting for Miss Universe 2026.

Pharma & M&A: Vicapsys Life Sciences named an advisory board after completing its reverse merger with Stateline Distributors of Puerto Rico, backing strategy for federal/tribal market access and a NitroMist relaunch tied to FDA steps. Small Business Growth: CUD unveiled its 2026-2028 “Fomento Local” plan to expand opportunities for Puerto Rico’s small and midsize firms, including cross-border commerce and easing operating obstacles. Health Policy & Drug Pricing: CMS’s GENEROUS Model now includes all 50 states plus Puerto Rico, with participation agreements due by Sept. 30 and projected Medicaid savings—potentially reshaping coverage and net drug costs. PREPA Bond Fight: The First Circuit upheld subordination of a $8.5B PREPA bondholder claim, limiting what bondholders can recover in Puerto Rico’s restructuring. Government Oversight: FEI expanded its OGPe permitting investigation to examine potential criminal exposure involving DDEC deputy secretary Roberto Lefranc Fortuño. Energy & Costs: Puerto Rico’s clinical labs group is pushing for Medicaid funding and reimbursement reforms while also highlighting the island’s need for stronger federal policy influence. Regulatory Watch: October broadcaster deadlines include EEO public file uploads for Puerto Rico stations and EAS reporting tied to the Nationwide EAS Test.

Healthcare & Economy: A new study says Puerto Rico’s hospice industry generates about $142M in economic activity, supports 1,417 jobs, and could deliver $24.4M in net benefits, highlighting underuse and potential cost savings through home-based end-of-life care. Energy & Courts: The First Circuit rejected PREPA bondholders’ bid to tap central government funds, ruling the trustee waived certain claims in the 2022 plan of adjustment. Agriculture & Drought Relief: Gov. Jenniffer González-Colón announced USDA expanded Puerto Rico’s drought disaster designations, adding 31 primary and 22 contiguous municipalities for eligibility to federal assistance. Telecom: Claro launched a fiber campaign touting symmetrical speeds and a new “Claro Full” bundle with 1,000 Mbps up and down. Business & Investment: Vicapsys Life Sciences completed a reverse merger with Stateline Distributors of Puerto Rico and signed an agreement to acquire NitroMist, aiming to build a vertically integrated pharma platform. Local Growth: Puerto Rico Science, Technology and Research Trust will invest $1.12M via 16 Catalyzer grants to fund local research across biotech, devices, renewables, and environmental science. Logistics & Costs: Puerto Rico truckers warned they may cut service if fuel surcharges go unpaid as diesel prices surge.

Puerto Rico Housing Crunch: Senate Vice President Carmelo Ríos Santiago called an emergency meeting with landlords, mayors and the Housing Secretary after sharp rent hikes in the San Juan metro/Bayamón area, citing one- to two-bedroom rents now roughly $800–$2,700 and two-bedroom averages rising from about $750 in 2020 to $1,300 today. PROMESA Procurement Watch: Financial Oversight and Management Board Executive Director Robert Mujica Jr. urged Puerto Rico to modernize lobbying rules, warning the island still allows contingency fees tied to government action and lacks limits common elsewhere. Energy Costs & LNG Dispute: A tug-and-berthing fight between New Fortress Energy and the San Juan Bay Pilots is forcing the San Juan power plant to burn diesel instead of natural gas, raising costs for ratepayers. SME Fuel Tax Pressure (“crudita”): The United Retailers Center (CUD) and industry groups pushed the Senate to cut and phase out the “crudita” excise tax, arguing it ripples through transportation and the supply chain. CUD Outreach Leadership: CUD named Sheila Otero Rivera to lead its “CUD de tu pueblo” business outreach, focusing on tailored support for small and midsize firms. Digital Artisans Push: Planeta Boricua launched a year-round digital fair to help Puerto Rican artisans sell locally and in the U.S. via QR tools and online storefront links. Food Prices: Sizzler Puerto Rico rolled out lower-cost lunch and dinner buffet pricing plus a student discount amid rising living costs.

Puerto Rico Energy Finance: Infinigen secured a $33M tax equity closing for the 42.6-MW Yabucoa Solar Project, with an extra $26M lined up for battery storage—advancing its third utility-scale solar platform on the island. Puerto Rico Power & Regulation: A separate Puerto Rico emissions story reports a $700,000 Clean Air Act settlement tied to Steri-Tech, underscoring ongoing compliance pressure in local energy and industrial operations. Local Governance & Costs: Puerto Rico’s Senate is set to tackle rising housing rental costs, as the island’s affordability squeeze remains a top business and household concern. Media, Money & Tourism: Puerto Rico’s Tourism Company says its legal team is reviewing Miss Universe CEO Nawat Itsaragrisil’s claims about how pageant funds and contracts were handled, with potential legal action not ruled out. Local Business & Jobs: Two legacy Puerto Rico newspapers plan to go digital-only, a major shift for local media economics and advertising ecosystems. Trade & Growth: The CT-Puerto Rico Trade Commission is pushing to strengthen economic ties, aiming to expand business opportunities.