Fundação Renova


Published in: 07/29/2020

Local Economy , Economia Local

Working capital credit line for micro and small businesses with conditions and interest rates from 0.45% per month

From 2017 to 2020, the Doce River Development Fund has granted approximately R$ 53 million in loans to 1,364 micro and small businesses from Minas Gerais and Espirito Santo located in the municipalities affected by the Fundao dam collapse. The initiative offers companies unique conditions to overcome the economic crisis caused by the coronavirus, maintaining reduced interest rates from 0.45% per month until September 30 this year.

Besides, since April, the fund has included the Credit Analysis and Opening Rate (TAAC) in its financing. For existing contracts, there is the possibility of renegotiation to take full advantage of the new conditions. As of October, the Financial Transaction Tax (IOF) will be collected again by the Federal Government, and this tax may also be included in the loan.

“Initially, these special measures were intended to be valid until June 30. However, we decided to extend them for another three months due to the situation we are still experiencing. Today, the interest rate, starting at 0.45%, is well below most of those practiced in the market, making the fund very attractive. We aim to stimulate the financial health of the entrepreneurs so that they can survive, or even better, generate jobs,” explains Diogenes Fonseca Lima, from Economy and Innovation.

Created by the Renova Foundation and managed by the Minas Gerais Development Bank (BDMG) and the Espirito Santo Development Bank (Bandes), the fund aims to promote the territories’ development along the Doce River. The initiative was created to facilitate access to credit for micro and small companies in the municipalities hit by Fundao dam collapse in Mariana (MG).

To participate, the company must have annual sales of up to R$ 30 million and be headquartered in one of the 35 municipalities in Minas Gerais, or in one of the four municipalities in Espirito Santo that are within the scope of the Renova Foundation. In Minas Gerais: 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. 

The participating municipalities in Espirito Santo are Linhares, Colatina, Baixo Guandu, and Marilandia. Entrepreneurs from this state registered as Individual Microentrepreneurs (MEI) may also have access to the Development Fund.

Companies can request loans between R $ 10,000 and R $ 200,000, divided into up to 48 fixed installments and up to 6 months of grace period to pay the first installment. Until June 2020, the funds had already granted R $ 43.9 million to 984 companies in Minas Gerais and R $ 9 million to 380 companies in Espirito Santo.

Access to credit

In Minas Gerais, those interested can search for information and apply through the website The credit limit is calculated in about one hour. After this procedure, in case of approval, the company must print the financing contract 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 Nossocredito program. It is also possible to consult the website or to contact us at 0800-283-4202 for information. After the conversation with the consultant, the next step is registration. If the provided documentation is correct, the process continues with review and approval.

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