Newsletter:

Extension provided to the Industrial Sector affected by Hurricane Maria for the Application of Emergency Incentives for operations under Act 20 and Act 73

01 November 2017

Administrative Order 2017-005 (“AO-2017-005”)

I. Emergency Incentives Application

On September 18, 2017, the Puerto Rico Industrial Development Company (“PRIDCO”) issued Administrative Order No. AO-2017-003 (“AO-2017-003”) to assist the industrial community affected by Hurricane Maria.  AO-2017-003 was valid for a period of 21 days from its issuance.

To assist companies with the Emergency Incentives’ Application process and help them re-establish operations as soon as possible, PRIDCO’s Executive Director (“Director”) issued Administrative Order No. AO-2017-005 (“AO-2017-005”). Accordingly, and in order to provide the necessary economic assistance to the industrial sector affected by Hurricane Maria, PRIDCO will evaluate the availability of funds and the possibility to distribute them to the industrial community.

In AO-2017-005, the Director stated that every small or medium business (“PYMES”), which operations qualify under Act 73-2008, as amended (“Act 73-2008”), or Act 20-2012, as amended (“Act 20-2012”), and that were affected by Hurricane Maria, will be able to apply for incentives for the acquisition of electric generators systems. The business can receive an incentive equal to 100% of the cost of the equipment, up to $25,000. In case of incentives to cover for the cost of the acquisition of raw material that was damaged by the Hurricane, the limit will be $10,000 after providing evidence of the damage.    

For other types of equipment necessary to re-establish the company’s operations, the limit of the incentive will be up to $25,000 and will require submitting copies of 3 quotes.

Also, PYMES eligible under Act 73-2008 and Act 20-2012, that suffered damages due to the Hurricane will be able to apply for a guaranty for loans with the PR Economic Development Bank of up to 50% of the loan, with a limit of $10,000 guaranty.

Please contact any of the members of the BDO team to continue the conversation.