Under the Federal “Coronavirus Aid, Relief, and Economic Security (CARES) Act”, funds were allocated under a Coronavirus Relief Fund for all the States and Territories of the United States of America.
For Puerto Rico, the Federal Treasury Department allocated a total of $2,240,625,863.80 to cover costs incurred due to the COVID-19 Pandemic Emergency. The funds must be used by December 30th, 2020. Under the local Executive Order OE-2020-40, the Governor established a strategic plan for the use and disbursement of these funds.
Within this Executive Order, funds are designated for small businesses with 2-49 employees of $5,000. For small/medium sized businesses that have 50-500 employees a relief of $10,000 is designated.
On May 23rd, 2020, the designated Committee approved the program guidelines covering these incentives and published them with the intent to communicate on how these funds will be distributed. Funds will be available on a first-come basis and will be available until funds are exhausted or the deadline of December 30th, 2020.
These guidelines can be found at: aafaf.pr.gov.
The business will have to certify that the funds will be used to cover necessary expenses related to COVID-19, including loss of profits due to business interruption. The business is not allowed to use the funds to pay bonuses to executives, refinance debts, or for any other expense not permitted. The business will have until December 30th, 2020, to use the funds.
To request the funds, the business will need to access and request them through their SURI account. The business will also need to submit a copy of Form 941-PR covering the 1st quarter of 2020 along with the evidence of filing with the IRS.
