Cuenca Just Made It Easier to Start a Business: New Ordinance Offers Zero-Interest Seed Capital

If you’ve ever thought about starting a small business in Cuenca — a café, a consulting practice, an artisan workshop, whatever — the city just created a new tool to help you get off the ground.

Cuenca’s Concejo Cantonal (Municipal Council) unanimously approved the “Ordenanza para el Fortalecimiento del Emprendimiento y la Innovación en el Cantón Cuenca” — an ordinance that establishes seed capital funding, training programs, and commercial channels for local entrepreneurs.

What the Ordinance Does

The key feature: the city will provide seed capital (fondos semilla) to qualifying entrepreneurs with businesses in the popular and solidarity economy. The terms:

• Two-year grace period — no payments required for the first two years
• Zero interest — when you do repay, you return only the original amount
• Revolving fund — repaid capital goes right back into the pool to fund the next round of entrepreneurs

It’s not a grant (you pay it back), and it’s not a traditional loan (no interest, no banks). Think of it as the city investing in your business and asking you to pass it forward when you’re on your feet.

Who Qualifies

The ordinance targets entrepreneurs in the economía popular y solidaria — Ecuador’s legal framework for small-scale, community-oriented businesses. This includes:

• Small food producers and market vendors
• Artisans and craftspeople
• Agroecological producers
• Women-led household businesses
• Community cooperatives and associations

The specific eligibility criteria and application process will be defined in a comprehensive plan developed by EDEC EP (Cuenca’s municipal economic development agency) and approved by a Multisectoral Selection Committee with representatives from the private sector, academia, and government.

Beyond Seed Money

The ordinance isn’t just about cash. It also mandates:

• Training and capacity building for entrepreneurs (business planning, financial management, marketing)
• Commercial channels — meaning the city will help connect entrepreneurs with markets and sales opportunities (think: those EDEC-organized fairs around the city during holidays and festivals)
• Innovation support — resources for businesses incorporating new technology or processes

How It Got Here

This wasn’t a top-down decree. The ordinance was built through more than 18 working sessions involving local universities, youth groups, business guilds, and national companies. That participatory process is part of why it passed unanimously — by the time it reached the Council floor, stakeholders had already shaped it.

It’s one of Mayor Cristian Zamora’s 101 proposals for his administration and falls under EDEC EP’s broader entrepreneurship plan for the canton.

What About Expat Entrepreneurs?

Here’s the honest answer: the ordinance is designed primarily for Ecuadorian citizens and residents operating in the popular and solidarity economy. If you’re an expat running a registered business in Cuenca, you’d need to check whether your business structure qualifies under the economía popular y solidaria framework.

That said, the broader ecosystem benefits everyone. More training programs, better commercial infrastructure, and a city government that’s actively investing in small business development creates a better environment for all entrepreneurs in Cuenca — including expats.

If you’re serious about launching or growing a business here, keep an eye on EDEC EP’s announcements for when the application process opens. Their office is in the Edificio Municipal and they’re active on social media.

Also Passed: Updated Tourism Ordinance

In the same session, the Council also approved a modernized tourism ordinance — the first update in 18 years. The new rules recognize emerging accommodation types like glamping, rooftop venues, and non-traditional lodging, bringing regulations in line with how tourism actually works in 2026. Mayor Zamora noted the sector’s “sustained growth” and the need for rules that support it “with order and sustainability.”

For expats running Airbnbs, guesthouses, or tourism-related businesses, the updated ordinance is worth reading when the full text is published.

Sources: GAD Municipal de Cuenca, EDEC EP