Lula Launches Prospera MEI Package With $5 Billion in Non-Repayable Funds
Brazilian president announces direct transfers up to $5,000 for microentrepreneurs, plus debt forgiveness and revenue ceiling increase pending Congress approval.
KEY POINTS
- R$5 billion allocated for non-repayable transfers up to R$5,000 per MEI (2027-2030)
- R$12.6 billion in tax debt forgiveness proposed
- Revenue ceiling increase from R$81,000 to R$140,000 annually
- MEIs may hire more than one employee under new rules
- All measures require Congressional approval; implementation details pending
President Luiz Inácio Lula da Silva unveiled the Prospera MEI program on Tuesday at the Planalto Palace, allocating R$5 billion in non-repayable funds for microentrepreneurs between 2027 and 2030. Each eligible MEI may receive up to R$5,000 to purchase equipment or hire services without repayment obligations.
The package includes forgiveness of R$12.6 billion in tax debts and a proposal to raise the annual revenue ceiling from R$81,000 to R$140,000. It also allows MEIs to hire additional employees beyond the current limit of one.
“It is not a loan, it is a deposit of trust in you.”
Priority will be given to women and lower-revenue entrepreneurs, with project oversight by Sebrae and Senai under the Brasil Mais Produtivo plan. The measures require Congressional approval via a complementary bill, decrees, and a Finance Ministry ordinance.
Lula described the transfer as a "deposit of trust" rather than a loan during the ceremony. Selection criteria, enrollment calendar, payment schedule, and total beneficiary count remain undefined pending legislative action.
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