DDEC's Administrative Order 2022-010 creates Economic Recovery Program for Small and Medium-Sized Enterprises (in Spanish, PYMEs) impacted by Fiona
The Department of Economic Development and Commerce (DDEC, by its Spanish acronym), as the governmental agency in charge of promoting and implementing public policies for the economic development in Puerto Rico, deemed necessary to provide incentives to the small and medium sized businesses (SMEs, or PYMEs in Spanish) affected by Hurricane Fiona. Consequently, the DDEC issued Administrative Order No. 2022-010, creating the Economic Recovery Program.
The purpose of the Economic Recovery Program is to promote the preservation of employment, offer goods and services to the region where the business is, preserve the property of the merchants and a step-by-step but consistent recovery of the most affected. The DDEC has assigned two million dollars ($2,000,000) to help aid in the recovery of the businesses that have found themselves impacted by Hurricane Fiona.
The $2,000,000 assigned for the program will be used to provide the following economic incentives:
- For the purchase of generators or solar panel systems, up to a maximum of $25,000.
- For the acquisition or repairment of equipment damaged by the emergency, up to a maximum of $50,000.
- For the acquisition or to mitigate the loss of raw materials, up to a maximum of $10,000.
- A contribution or prompt payment of the emergency loans granted by the Economic Development Bank to guarantee the continuity of business operations, up to a maximum of $5,000.
- To fund 50% of the operating expenses for one (1) month, up to a maximum of $10,000. Please note, “operating expenses” will solely include payroll, electricity, water and rent.
- For the repair of structural damages as consequence of the Hurricane, up to a maximum of $50,000.
To benefit from the economic incentives mentioned above, the applicants must meet the following requirements:
- Qualify as a SMEs, a business with an annual volume of business equal or lesser to $1,500,000 during the last three (3) tax years, regardless of the number of employees.
- Provide evidence of the damages suffered as consequence of Hurricane Fiona
- The business must be operating and in compliance with Puerto Rico laws and regulations up to September 17, 2022.
- Complete the form available at refuerzoeconomico.ddec.pr.gov or request it via email at [email protected]. The form must include:
- A business case of at least one paragraph describing in detail all the damages suffered.
- A certification that all the information provided in the form as well as all declarations made by the applicant are true.
- Provide the following documents:
- Copy of the Merchant Registration Certificate.
- Copy of the Income Tax Return for the last three (3) tax years.
- Other governmental certifications required as evidence that all tax filings with the agencies are up to date and no debt is due.
- Any other additional documentation required.
The SMEs have three alternatives to apply for the economic incentives:
- Filling out the form and uploading the requested documents through the DDEC platform (refuerzoeconomico.ddec.pr.gov).
- Filling out the form and sending it along with the requested documents though email at [email protected].
- Personally, by visiting the “Centro Único de Servicios” office located at DDEC.
At RSM Puerto Rico, we can provide you with additional information and advice regarding this matter. Please contact our tax advisors at (787) 751-6164 | [email protected] for help or more information.