U.S. announces changes to give private sector, small businesses in Cuba more financial support

WASHINGTON/HAVANA — The U.S. Treasury Department on Tuesday announced regulatory changes to allow more American financial support for Cuba’s nascent private sector and bolster access to U.S. internet-based services, limited but timely measures that officials said would help give the island’s budding small businesses a leg up.

The United States said it would permit small entrepreneurs on the Communist-run island to open and access U.S. bank accounts from Cuba for the first time in decades, following prohibitions put in place shortly after Fidel Castro’s 1959 revolution.

The measures would also allow Cuban entrepreneurs to use U.S.-based social media platforms, online payment sites, video conferencing and authentication services, previously unavailable to the sector and a major hurdle currently facing small businesses on the island.

The moves aim to fulfill the Biden administration’s long-delayed pledge to help Cuba’s budding entrepreneurs, giving its small but fast-growing private sector deference despite the Cold War-era U.S. embargo that has for decades complicated financial transactions by the Cuban government.

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

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

In crafting the measures, U.S. officials, who briefed reporters on condition of anonymity, signaled they had sought to balance the goal of bolstering the private sector with a desire to avoid benefit to Cuban authorities.

President Joe Biden took office in January 2021 with hopes high in Cuba for a reversal of a harsh