MP which facilitates up to 23 billion R$ as credit for small businesses

Last Monday, the 25th, the federal government launched a set of initiatives to help entrepreneurs reach credit. One of the temporary provisions for small, medium and large comp (MP), which regulates credit guarantee funds for this sector, expects to apply R$23 billion in credits.

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The program launched by the federal government was called “Programa Crédito Brasil Empreendedor” and extends its duration to the National Support Program for Small and Micro Business (Pronampe), a type of credit launched in 2020, also by the federal government, with the aim of mitigating the effects of the economic crisis caused by Covid-19 for small business owners.

The chamber voted to extend the national support program for small and micro-enterprises in April and gave the government more time to return the guarantee fund from 2025.

Incentive Measures

Another measure taken by the Federal Government is to end the IOF by the end of next year (2023) for three programs focusing on small and micro businesses: The National Support Program for Microenterprises and Small Businesses; Business (Pronampe), Emergency Credit (Peac) and Credit Stimulus (PEC).

The mentioned programs include three institutions that collectively add up to a total annual revenue of R$300 million. The temporary credit measure, which will total R$23 billion, will allocate R$21 billion to PEAC. The Investment Guarantee Fund will provide future financial assistance.

Fundo Garantidor de Habitação Popular (FGHab) will receive $2 billion in funding. The Financial Sector Development Center in Brunambe, according to government estimates, will add about R$50 billion to the banking sector.

Initially, the government intended to guarantee nearly R$100 billion, an estimate given by the Economy Minister, Paulo Guedes, in February, at a meeting with businessmen.

More news

The federal government has announced several measures related to the economy since March 17. The procedures that permeated here today are part of the so-called electoral year prepackaged benefits system, corrections to the income tax schedule, benefits for collectors, readjustment for public servants, and microcredits from Caixa Tem Bank, among many other things.