Put André Jerusalem – 07/07/2020

On July 3rd, the National Bank for Economic and Social Development (“BNDES”) increased by an additional R$1.4T5 billion the amount available in its working capital loan line aimed at micro, small and medium-sized companies. These amounts were already provided for in the initial plan to combat COVID-19, presented in March. The term of these credit lines will be extended from September 30 to December 31, 2020, and this term may be extended according to the needs presented.

According to information from BNDES, the main economic sector covered by the loan lines made available was trade and services, which acquired 79.7% of the resources, followed by the manufacturing industry (19.5%). On the other hand, agribusiness received only 0.7% of the resources and the extractive industry received 0.1%.

Requests for access to financing lines made available by BNDES must be made through one of the partner financial agents (credit cooperatives and commercial banks, public or private). BNDES currently has 31 partner agents operating in the states, and the bank has a channel for information on micro and small businesses.[1].

Companies with annual revenues of up to R$300 million may apply for financing. The amount released is up to R$70 million per year, with a grace period of up to 24 months and a repayment term of up to 60 months. Interest rates are negotiated between the company and the financial agent.

[1] https://www.bndes.gov.br/wps/portal/site/home/financiamento/canal-mpme