According to the president of the institution, Joaquim Levy, the bank is aware of the signs of economic recovery and decided to create a simpler and more agile line of credit for micro and small businesses to be able to touch new ventures. “It’s not just to buy machines, but to do all the activities necessary to expand, renew or improve their services,” Mr. Levy said. “Micro and small businesses are critical to the economy. They are the best sign of health in an economy, “he added.
The new financing instrument focuses on job creation and the expansion of credit for smaller companies, responsible for more than 50% of formal jobs in Brazil. The work will be done by BNDES in partnership with commercial, development and cooperative banks, which operate at the top of the financial chain, in all Brazilian regions.
Levy also said that the new credit line “is a contribution of the BNDES to give more competitiveness to the segment that generates more employment. “And employment is what Brazil needs most,” he said. According to the BNDES, micro and small enterprises account for the creation of 18 million formal jobs in Brazil, equivalent to 55% of the total formal jobs in the country.
Levy pointed out that credit for this business segment fell 44% from December 2014 through January of this year, but said he believes that with the new outlook for the economy, there is a chance of growth. The balance of credit for Gross Domestic Product (GDP, the sum of all goods and services produced in the country) for micro and small enterprises reached 7.3% in January 2019. “I think we can increase this and give greater vitality to this sector. ”
He stressed that the sector is important for the BNDES, which last year passed almost R $ 15 billion to micro and small companies. There were 242 thousand operations, equivalent to 79% of the total registered by the institution in 4,581 municipalities, totaling 136 thousand clients. Levy, who expects to increase these numbers, said that the percentage of customers with sales up to R $ 4.8 million corresponding to 90% of the bank’s customers in 2018.
Investment can be financed up to 100%, limited to R $ 500 thousand per beneficiary, every five years. The client will have three reference interest options: Long-Term (TLP), Selic (TS), or Fixed-Rate (BNDES) rates. The fee will result from trading with the financial agent bank of BNDES.