Fundação Renova

Develop the Doce River doubles the credit limit for companies in 39 municipalities that were affected by the Fundao dam collapse

Published in: 03/15/2018

Local Economy

With an interest rate reduction, starting at 9.90% per year, the credit is now even more attractive for those joining the fund

The Working Capital Fund Develop the Doce River, created by the Renova Foundation, in partnership with the Minas Gerais Development Bank (BDMG) and the Espirito Santo Development Bank (Bandes), has increased the credit limit for 39 municipalities in Mariana (MG) that were affected by the Fundao dam collapse.

Now, micro and medium-sized companies from any municipality located in the area within range of the fund and with an annual revenue of up to R$ 30 million, can apply for loans ranging between R$ 10 thousand and R$ 200 thousand. With an interest rate reduction, starting at 9.90% per year, the credit is now even more attractive for those joining the fund.

Micro and medium-sized companies from any affected municipality and with an annual revenue of up to R$ 30 million, can apply for loans ranging between R$ 10 thousand and R$ 200 thousand. | Photo: Nitro Images

Micro and medium-sized companies from any affected municipality and with an annual revenue of up to R$ 30 million, can apply for loans ranging between R$ 10 thousand and R$ 200 thousand. | Photo: Nitro Images

According to BDMG, the average value of operations in the first months of existence of the fund reached R$ 33 thousand per company. It is expected that, maintaining this average, some 2.7 thousand credit operations may be handled by the Fund throughout its trajectory, with an initial contribution of R$ 30 million over a period of ten years. In Espirito Santo, Bandes has made provided financing with an average of around R$ 20 thousand. With the initial contribution of R$ 10 million, it will be possible to provide 1,500 credits, also over a period of ten years. 

Since the creation of Develop the Doce River in October 2017, 238 companies have been provided with the available resources. Altogether, R$ 5.3 million has already been allocated to entrepreneurs from Minas Gerais and R$ 1.3 million to entrepreneurs from Espirito Santo. “The proposal stimulates the financial health of local entrepreneurs, so that they can maintain and generate jobs, and it stimulates the development of companies in these municipalities,” says Paulo Rocha, from the ​​Economy and Innovation area.

According to BDMG president Marco Aurelio Crocco, there is an effort by all parties to improve the line of credit. “This way, the new limit for micro and small-sized companies in the region will boost local economic activity.” 

Application 

In Minas, the applications can be made through the BDMG website or through a correspondent bank listed on the portal.  If you choose to apply online, the interested party must enter the requested information. The credit limit is calculated in one hour. After this procedure, if the credit limit is approved, the company should print the financing agreement and send the requested documentation to BDMG. If the documentation is all in order, the loan will be released within 3 business days.

In Espirito Santo, the applications should be made with consultants of the bank, present in the agencies of the municipalities of Marilandia, Colatina, Linhares and Baixo Guandu. After prospection, the next step is registration.  If the provided documentation is correct, the next steps of the process are review and approval. Upon completion, the loan will be released within 15 days. More information on the website.

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