PYMES (SMEs) Incentive of $1,500

We sincerely hope you are safe and healthy.

On March 30, 2020, the Secretary of Economic Development and Commerce (DEDC), Manuel AJ Laboy Rivera, signed Administrative Order 2020-05 to implement a $1,500 incentive program, best known as SMEs, that will benefit small and medium-sized enterprises.

To qualify for this incentive, the individual must apply online through a website that the DEDC has enabled for this purpose: https://refuerzoeconomico.com/incentivos-a-pymes

The deadline to apply for this incentive is May 1, 2020.

However, to qualify for this incentive, the entity must fall within the definition of what a small or medium-sized enterprise should be and must meet the following requirements:

1. Be a small and medium-sized enterprise (SMEs), which is defined, for purposes of this Administrative Order, as businesses, whether through a legal entity or an individual business conducted by a natural person, that have 50 employees or less and have a business volume of no more than $10 million.

2. Be registered as a "merchant" under the Department of Treasury's Unified Internal Revenue System (SURI), and have a valid Merchant's Registration Certificate (Model SC 2918) as of March 15, 2020. In the case of merchants registered with SURI whose Merchant's Registration Certificate has expired as of March 15, 2020, the merchant must renew the certificate before applying for the incentive and must certify that it has not ceased operations.

3. In the case of SMEs other than legal entities, if the individual had previously requested the incentive from Circular Letter of Internal Revenue No. 20-21 issued on March 26, 2020 (incentive of $500 to self-employed workers due to COVID-19 in Puerto Rico), then the individual, instead of receiving the total amount of $1,500 for purposes of this incentive, will only receive $1,000 in state aid, which is the difference of the $1,500.

4. Must confirm, through the DEDC’s electronic application, the account number and route number corresponding to the bank account of the small and medium-sized enterprise where the incentive will be deposited.

5. Must accept all terms and conditions contained in the DEDC's electronic application.

Important: The DEDC reserves the right to subsequently monitor and evaluate the incentives granted under this Administrative Order, and may recover the amount granted to any merchant that has provided false or incorrect information in the request.

Considering the aforementioned, if you understand that you meet all the requirements, access the link mentioned above and follow the steps to apply for this incentive.

At Carbonell and Co., LLP, we are committed to provide assistance and guidance to our clients and their families in these crucial and trying times. Should you have any questions or comments, please do not hesitate to contact us.