September 28, 2023

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Government releases R$23 billion as credit for micro and small businesses

Government releases R$23 billion as credit for micro and small businesses

It will be for small, medium and micro enterprises Easy access to credit from now on. On Monday, the 25th, the federal government published the Provisional Measure (MP) that establishes Brazilian Entrepreneur Credit Programwith the possibility of benefiting from 23 billion Brazilian riyals in financing.

Read more: Invista: the bank offers a loan of up to 21,000 Brazilian reais for those who have a business

In addition to releasing the funds, the package also extends the term of Pronambi, a measure approved in April in the House of Representatives. It gives the government more time to return the money used in the guarantee fund from 2025.

Another important decision contained in the text is the abolition of the tax on financial operations (Israeli occupation forces) until the end of 2023 for three programs: Pronampe, PEAC (Program for Emergency Access to Credit) and PEC (Program for Credit Stimulus). All of them serve small businesses with a total annual turnover of R$300 million.

Of the R$23 million stipulated in the MP, R$21 billion will go to PEAC via the Investment Guarantee Fund, while about R$2 billion will be allocated to the People’s Housing Guarantee Fund (FGHab). The government also estimates that the extension of the Pronampe program should benefit banks with about R$50 billion.

In February, the Minister of Economy, Paulo Guedes, stated that the government expected to make about R$100 billion with the programme, but expectations had fallen.

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