Brazilian government announces $3B in funding for MSEs

LatamList – The Brazilian Government announced $3B (R$15.9B) to support small businesses during the COVID-19 pandemic. The credit comes from the National Support Program for Micro and Small Enterprises (Pronampe).

The credit is expected to reach around 4.5 million MSEs, according to the National Treasury. The amount given to each company will equate to up to 30% of annual gross revenue based on the 2019 financial year. Interest rates will be equal to Selic – 3% per year, with an eight-month grace period before repayment.

“Our main concern now is to make credit for companies viable,” said Carlos da Costa, Secretary of Productivity, Employment, and Competitiveness. “This is the moment when working capital is the most important.”

Public, private, cooperative, and credit unions can request credit. This includes any institution that is legally part of the Brazilian Payment System, such as fintechs and civil society organizations of public interest.

Read more on Exame.

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