New credit program should inject BRL 87 billion into small businesses, government predicts

After weeks of expectation, the Jair Bolsonaro (PL) government made official this Monday (25) the launch of a new credit program aimed at small businesses, with a promise to inject around R$ 87 billion in financing.

The focus of the program, called Crédito Brasil Empreendedor, is to provide financing for MEIs (individual microentrepreneurs), micro, small and medium-sized companies.

The measure had been awaited for more than two months by entrepreneurs, especially in the service sector, who are still recovering from the economic effects of the Covid-19 pandemic. In February, Minister Paulo Guedes told representatives of trade and services that the government would launch a R$100 billion package in credit.

Even with the official announcement, the money will not be available immediately. In a press conference this Monday afternoon, the special secretary for Productivity, Employment and Competitiveness of the Economy, Daniella Marques, said that banks must take up to 60 days to operationalize the lines of credit.

In addition, a significant part of the package (R$ 64 billion) still depends on the approval of a bill by the National Congress. The remaining R$23 billion must be unlocked through an MP (provisional measure) published by the government on April 20.

“There is a sensitivity of ours to breathe new life, given that activities, mainly in sectors related to commerce and services, only returned to full normality at the beginning of this year. We want to breathe new life. And [o governo está] also sensitive to the increase in interest rates from one year to another, still an effect of the Covid-19 crisis”, said Marques.

“These are resources in very advantageous conditions and in sufficient volume to give pulse to micro and small companies and especially to MEIs, which did not have access to these modalities in the last rounds. [de programas de crédito]”, added the secretary.

The announcement comes amid complaints from businessmen aligned with Bolsonaro due to high interest rates in the country. In an election year, low rates were seen as one of Bolsonaro’s few advantages in the economy in the face of the implosion of the liberal agenda.

The CACB (Confederation of Commercial Associations of Brazil) released a note stating that the action is positive, but at the same time frustrating, given that the expected volume is “insufficient to ensure the full recovery of the segment”.

“Taking into account the amount that was initially discussed, of R$ 100 billion, we believe that micro and small entrepreneurs deserved more attention, especially at a time when they are starting to recover from the disastrous impacts generated by the pandemic”, said the president of the entity. , Alfredo Cotait.

The program launched by the government includes the renewal of Pronampe (National Support Program for Micro and Small Businesses), which ended at the end of last year, and the PEAC (Emergency Program for Access to Credit), whose contracts took place until December 2020. .

In order to make new hires viable, the funds allocated on an emergency basis will be maintained in the FGO (Fund Garantidor de Operações), which guaranteed the hiring of Pronampe, and in the FGI (Fundo Garantidor para Investimentos), linked to PEAC. Before, the forecast was that the money would return to the National Treasury coffers to reduce public debt.

In the case of PEAC, the government issued an MP (provisional measure), with immediate effect, authorizing the FGI to maintain the resources for granting guarantees in operations contracted until December 31, 2023. The government’s expectation is that this will enable R $21 billion in new credits. Micro, small and medium-sized companies with revenues of up to R$ 300 million per year will be able to access the MEI line.

The operations will have a grace period of between six and 12 months, and a payment term of one to five years. According to the secretary, the maximum rate will be 2.8% per month, although the expectation is an average between 1.5% and 1.75% per month. “We hope to have the resources at the tip within 60 days,” she said.

The extension of Pronampe has already been approved by the Chamber of Deputies on April 12, but the project still needs to go through a new vote in the Senate. According to Marques, there are talks between the government and the president of the Senate, Rodrigo Pacheco (PSD-MG), and leaders in the House to guide the proposal later this week. “Soon after, the government will make every effort to sanction quickly,” he said.

The new Pronampe resources must be operationalized within 45 to 60 days after the sanction. The government expects to mobilize another BRL 50 billion with new operations to be contracted by December 31, 2024. Entrepreneurs with active loans, but with difficulties to repay the installments, will also be able to renegotiate their contracts — a demand from trade and services.

The congressional project also resumes the PEC (Credit Stimulus Program), a program that encourages the granting of credit to micro and small and medium-sized companies by allowing financial institutions to convert any temporary losses with operations into tax credits to pay less tax. .

The measure frees up the capital of banks that would otherwise be committed to these transactions, which helps to leverage a greater volume of credit. The program had ended at the end of 2021, but the text of Congress extends its validity until December 31, 2022. The government projects an injection of another R$ 14 billion with the measure.

The government’s MP also amends the rules of the FGHab (Popular Housing Guarantee Fund). The change, anticipated by Folha, seeks to expand the access of low-income families to cheaper lines of credit for home ownership.

The fund has been in existence since 2009, but is rarely used due to limited collateral usage rules. Coverages included paying off the outstanding balance in the event of death or permanent disability, recovery expenses in the event of physical damage to the property or payment of benefits in the event of unemployment or temporary loss of income.

Now, the measure includes the possibility of triggering the guarantees in case of default for any reason. In this way, the fund will be used to mitigate the risk of banks in housing financing for low-income families in the Casa Verde e Amarela program. The government’s expectation is to make credit cheaper and easier for this public. R$ 2 billion in new financing is estimated on this front.

The head of the Strategic Affairs Advisory at the Ministry of Economy, Adolfo Sachsida, said that the new credit program honors a “campaign commitment” by President Jair Bolsonaro, by focusing on small businesses.

“We seek to focus on national heroes, not national champions,” he said, referring to the PT administration’s policy of facilitating credit for large companies.

According to Sachsida, maintaining the functioning of the credit channel is essential to guarantee the recovery of the economy, although there is no precise estimate of how much the program can represent in terms of gains in GDP growth this year.