# Brazil sanctions Prospera MEI law and announces Desenrola 3 > Live situation record from CLSTR: https://clstr.news/situations/brazil-microcredit-limit-increase-proposal > Updated: 2026-10-26T18:59:58.000Z. Sources: 245. Developments: 4. President Luiz Inácio Lula da Silva has sanctioned the Prospera MEI program, specifically Complementary Law 238/2026, to support micro-entrepreneurs in Brazil. The legislation provides for the automatic and full remission of federal tax debts—including social security contributions, fines, and interest—for debts registered in the Union's Active Debt up to October 13, 2026. This debt forgiveness is expected to benefit approximately 3.6 million entrepreneurs and covers a debt stock estimated to be between R$ 12.57 billion and R$ 18.7 billion. To maintain the benefit, entrepreneurs must remain current with monthly contributions for the six months following the law's implementation on January 1, 2027, and must withdraw any ongoing legal actions regarding these debts. The law also introduces a gradual increase to the annual revenue limit for the MEI category, rising from R$ 81,000 to R$ 110,000 in 2027 and reaching R$ 140,000 in 2028. Additionally, the legislation allows micro-entrepreneurs to hire up to two employees, up from the current limit of one, provided they receive at least the minimum wage or the category's floor. The package further facilitates MEI participation in public tenders and exempts them from issuing invoices for sales to individuals. As part of the broader package, the government will provide financial assistance of up to R$ 5,000 via Pix to approximately 1 million micro-entrepreneurs. This non-repayable credit, described by President Lula as a “government donation rather than a loan,” aims to facilitate the purchase of tools, machinery, or vehicles. While the program has been sanctioned, the Pix MEI initiative still requires regulation, with an official notice expected by the end of 2026 and operations anticipated in 2027. ## Claims - The Desenrola 3.0 program will be used to negotiate approximately R$ 6 billion in private bank debts for MEIs, requiring minimum discounts of 90% from creditors. (disputed by 28 sources) - The total debt of MEIs in the Union's Active Debt is R$ 12.86 billion. (disputed by 5 sources) - The law allows MEIs to hire up to two employees instead of one. (corroborated by 42 sources) - The annual revenue limit for MEIs will increase to R$ 110,000 in 2027 and R$ 140,000 in 2028. (corroborated by 39 sources) - President Lula sanctioned a complementary law changing MEI rules. (corroborated by 39 sources) - The federal government announced a package of five measures for micro-entrepreneurs (MEIs). (corroborated by 34 sources) - To keep debt forgiveness, MEIs must maintain current contributions for the six months following the law's enactment. (corroborated by 34 sources) - The debt forgiveness measure could benefit approximately 3.6 million MEIs and cover R$ 12.6 billion in debts. (corroborated by 32 sources) ## Timeline ### 2026-10-26: Brazil announces Prospera MEI program for micro-entrepreneurs Brazil's Prospera MEI program will offer up to R$ 5,000 in non-repayable funds to micro-entrepreneurs for business investments, with implementation expected to begin in 2027. 4 sources. https://clstr.news/cluster/brazil-announces-prospera-mei-program-for-micro-entrepreneurs ### 2026-10-21: Brazil sanctions Prospera MEI law and launches Desenrola 3.0 Brazil has sanctioned the Prospera MEI law, granting tax debt forgiveness and raising revenue limits for micro-entrepreneurs, while launching Desenrola 3.0 to renegotiate up to R$ 90 billion in debts. 150 sources. https://clstr.news/cluster/brazil-implements-prospera-mei-program-to-support-micro-entrepreneurs ### 2026-10-13: Brazil announces Prospera MEI package to support micro-entrepreneurs The Brazilian government announced the Prospera MEI package, featuring R$ 12.6 billion in tax debt forgiveness, R$ 5,000 in investment funds via Pix MEI, and plans to raise the annual revenue ceiling for micro- 162 sources. https://clstr.news/cluster/brazil-government-considers-raising-microcredit-limit-to-r-30000 ### 2026-10-10: Brazil proposes increasing microcredit limits for entrepreneurs The Brazilian government proposes raising microcredit limits from R$ 21,000 to R$ 30,000 to support entrepreneurs and combat the loss of purchasing power. 7 sources. https://clstr.news/cluster/brazil-proposes-increasing-microcredit-limits-for-entrepreneurs --- Cite as: Brazil sanctions Prospera MEI law and announces Desenrola 3. CLSTR, https://clstr.news/situations/brazil-microcredit-limit-increase-proposal