The credit line aims to support small businesses in Brazil and reduce the economic fallout from the COVID-19 outbreak. Through Fampe, the fund managed by Sebrae, self-employed individuals are eligible for a two-year loan of up to $2,500 at a rate of 1.59% per year. Small businesses can receive three-year loans of up to $25,000 at 1.19% per year.
In just 40 days since the launch on April 20th, the credit line signed 12,600 contracts amounting to $204M (R$1B). Among the benefits of the credit line are complementary guarantees and a 12-month grace period to pay back the loan.
Pedro Guimarães, President of Caixa, commented that the numbers reveal the importance of Caixa’s support to micro and small businesses. Separately, Caixa has granted $2.3B (R$11.4B) in emergency loans since the government set up the funding program to informal workers, self-employed, and freelancers during the pandemic.
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