Brazilian Government Announces New Support Package for Micro-Entrepreneurs

The Brazilian federal government has introduced a comprehensive support package, known as Prospera MEI, aimed at assisting individual micro-entrepreneurs across the country. The initiative, which was recently signed into law, includes several measures designed to stimulate small business growth, provide debt relief, and modernize the regulatory framework for this category of workers.

A central component of the package is the Pix MEI program, which intends to provide non-reimbursable financial aid of up to 5,000 Brazilian reais to eligible entrepreneurs. According to the Ministry of Entrepreneurship, Microenterprise, and Small Business, these funds are intended to be used for capital investments that enhance productivity, such as the purchase of professional tools, machinery, and equipment, or structural improvements to business facilities.

Minister of Entrepreneurship Paulo Pereira stated that the program is expected to be implemented via a mobile application starting in 2027. Applicants will be required to submit projects for government review, and the approval process will necessitate the presentation of invoices to verify that the funds were used for productive purposes. The government aims to reach between one and 1.5 million micro-entrepreneurs through this initiative, with a total estimated investment of 5 billion reais over four years.

The program will prioritize female entrepreneurs and those with an annual revenue of up to 40,500 reais. Officials have clarified that the aid will not be granted automatically to all registered micro-entrepreneurs; rather, it will be subject to specific selection criteria and operational rules that are currently under development. There is currently no active registration process, and the government has warned against potential scams promising immediate access to the funds.

In addition to the Pix MEI grants, the legislation introduces significant changes to the existing micro-entrepreneur framework. Starting January 1, 2027, the annual revenue limit for the category will increase from 81,000 reais to 110,000 reais, with a further increase to 140,000 reais scheduled for 2028. Furthermore, the law will allow micro-entrepreneurs to hire up to two employees, doubling the current limit of one.

The package also addresses the financial burden of outstanding tax obligations. The government plans to grant full forgiveness for debts owed to the federal government by micro-entrepreneurs that were overdue as of October 13, 2026. This measure is expected to benefit approximately 3.6 million individuals. According to official guidance, this relief will be applied automatically, though entrepreneurs are advised to keep their ongoing tax contributions current to remain eligible for the program.