Amount was disbursed to 810 companies to help save jobs in Governador Valadares, Ipatinga, Caratinga, Mariana and Timoteo
Five municipalities in the State of Minas Gerais received approximately R$ 35 million in disbursements from the Doce River Development Fund to save and keep 5,307 jobs. The line of credit, created by the Renova Foundation and managed by the Minas Gerais Development Bank (BDMG), has reached 810 companies from Governador Valadares, Ipatinga, Caratinga, Mariana and Timoteo. The amount corresponds to 80% of the total disbursed in Minas Gerais.
The main activities of these companies are related to retail: clothing and accessories; motor vehicles parts and accessories; hardware; wood and construction materials; restaurants and food and beverage services; accounting and tax auditing and consulting.
Until January 2021, approximately R$ 52 million was disbursed to 1,431 micro and small companies from Minas Gerais and Espirito Santo located in the municipalities affected by the Fundao dam collapse. In Espirito Santo, the credit line is managed by the Espirito Santo Development Bank (Bandes).
In all, in Minas Gerais, the Doce River Development Fund has disbursed R$ 42.5 million to 1,039 companies to help save and keep 6,623 jobs. Where as in Espirito Santo, R$ 9.9 million was made available to 392 companies to help save and keep 686 jobs.
The working capital fund aims to boost economic activity and foster development in towns and cities in Minas Gerais and Espirito Santo. To this end, the initiative facilitates the access of micro and small companies to credit with interest rates below those practiced by the market.
The initiative offers special conditions for these companies to overcome the economic crisis caused by the coronavirus, such as keeping the reduced interest rates, starting at 0.45% per month, and the inclusion of the Credit Analysis and Opening Rate (TAAC) for the loan. For existing contracts, it is possible to renegotiate to take advantage of the new conditions.
To participate, the company must have annual sales of up to R$ 30 million and must be headquarter in one of the municipalities that are within the scope of the Renova Foundation. In Minas Gerais, they are: Mariana, Barra Longa, Rio Doce, Santa Cruz do Escalvado, Sem-Peixe, Rio Casca, Sao Pedro dos Ferros, Sao Domingos do Prata, Sao Jose do Goiabal, Raul Soares, Dionisio, Corrego Novo, Pingo d’Agua, Marlieria, Bom Jesus do Galho, Timoteo, Caratinga, Ipatinga, Santana do Paraiso, Ipaba, Belo Oriente, Bugre, Iapu, Naque, Periquito, Sobralia, Fernandes Tourinho, Espadrilles, Governador Valadares, Tumiritinga, Galileia, Conselheiro Pena, Resplendor, Itueta and Aimores. In Espirito Santo, the municipalities participating are Linhares, Colatina, Baixo Guandu, Marilandia and Barra do Riacho, in Aracruz.
Companies can request disbursements between R$ 10,000 and R$ 200,000 in Espirito Santo, and up to R$ 480,000 in Minas Gerais, divided into up to 48 fixed installments and with up to six months of grace period for the first installment payment.
Access to credit
In Minas Gerais, those interested can search for information and apply through the website www.bdmg.mg.gov.br. The credit limit is calculated in about one hour and, in case approved, the company must print the loan agreement and send the requested documentation to BDMG. If all documentation is correct, the funds are released within three business days.
In the municipalities in Espirito Santo, interested parties can look for the branches of the “Our Credit” program. It is also possible to consult the website www.bandes.com.br, or to contact us at 0800-283-4202 for information. The next step is registration and with all the correct documentation it is followed by the review and approval process.