The National Economic and Social Development Bank (BNDES) informed in Rio de Janeiro that the institution’s Program to Strengthen Employment and Income Generation Capacity, announced by the Minister of Development, Luiz Fernando Furlan, is already available to Brazilian companies of all sizes to finance working capital.
The duration of the operations will be 24 months, including a 12-month grace period and 12 months for repayment, for all companies interested in participating in the program.
According to the BNDES, medium and large firms, with projects calling for resources greater than US$ 3.4 million (R$ 10 million), will receive credit directly from the Bank, up to a US$ 34.1 million (100 million reais) limit.
The project should contain a plan for creating openings on the job market. The interest rate will be reduced as the agreed-upon employment target is met.
For micro and small companies, the loans will be limited to US$ 34.1 thousand (100 thousand reais) and US$ 170 thousand (500 thousand reais), respectively.
Unlike the larger firms, these companies will not be required to present a job creation plan, since they are acknowledged to be generators of employment and income in the country.
As part of the government’s efforts to stimulate growth, the National Monetary Council has approved a financing program by the BNDES for purchases of machinery and equipment by the industrial sector, mainly the small business segment.
The BNDES has earmarked US$ 825 million (2.5 billion reais) for the program. Loans, of up to five years, will carry a 14.95% per year fixed interest rate. Up to 90% of the value of goods can be financed.