Agreement between BNDES and Sebrae creates fund for small businesses

Funding should initially attract around BRL 4.5 billion

Published in 12/07/2022 - 13:12 By Léo Rodrigues - Repórter da Agência Brasil - Rio de Janeiro

The National Economic and Social Bank - BNDES and the Brazilian Support Service for Micro and Small Enterprises - Sebrae signed on Tuesday (Jul. 12) a technical cooperation agreement for the creation of a guarantee fund, aimed exclusively at credit operations involving individual micro-entrepreneurs, micro, and small enterprises. Several financial institutions are expected to act as partners in the initiative. Funding between BRL 4.5 billion and BRL 15 billion shall be created.

Guarantee funds have the purpose of reducing the risk of financial institutions' credit operations. The new fund named BNDES FGI Sebrae shall be available nationwide, starting in December 2022. According to the agreement, BNDES and Sebrae will initially contribute BRL 150 million each. This amount can be increased to BRL 500 million.

The agreement also provides for other services. Individual microentrepreneurs and entrepreneurs of micro and small companies may receive guidance from Sebrae, through the Assisted Credit program. The initiative involves access to diagnostics, digital tools, content, training, and consultancy, with the purpose of reducing the risk of default, and increasing the financial sustainability of the business.

On the other hand, BNDES will make its management platform available for the operation of the new fund. It is a fully digital system used by several partner financial institutions, through which more than BRL 100 billion in credit operations have already been made possible.

Translation: Mário Nunes -  Edition: Paula Laboissière

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