Initiative aims to contribute and help micro and small companies overcome the economic crisis caused by the coronavirus
The managers of the Develop the Doce River working capital fund decided to adopt emergency actions to contribute to the economy of municipalities in the Doce River Basin due to the severe economic crisis that hit the country due to the covid-19. In addition to further reducing the rate, for interest from 0.45% per week, the Financial Transaction Tax (IOF) and the Credit Analysis and Opening Rate (TAAC) are now included in the loan. And, for existing contracts, specific actions and solutions will be adopted to help overcome this phase. The measures are valid until June 30 this year.
Created by the Renova Foundation and managed by the Minas Gerais Development Bank (BDMG) and the Espirito Santo Development Bank (Bandes), the fund is aimed at micro and small businesses located in the Minas Gerais and Espirito Santo municipalities affected by the Fundao dam collapse in Mariana (MG).
The companies must have annual sales of up to R$ 30 million and be based in one of the municipalities in the area covered by the Renova Foundation. In Minas Gerais there are 35 municipalities: 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, Marliéria, 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.
Companies can request loan amounts ranging between R$ 10,000 and R$ 200,000, with payments from 12 to 48 months and up to six months of grace period for the first installment.
Ipatinga is one of the municipalities served by the Develop the Doce River fund
“With these emergency actions we make it possible for micro and small companies in these municipalities to be better able to face this moment of economic difficulty in the country, with the facilitation of credit or renegotiation of existing contracts, so that their businesses don’t come to a halt, keeping jobs and contributing to the local economy,” says Roberto Ruggeri, specialist in the area of Economy and Innovation at the Renova Foundation.
“We are making resources even more accessible and promptly available in these challenging times. BDMG, as a development bank, has taken countercyclical actions for this scenario to minimize the economic and social impacts of this pandemic,” says Sergio Gusmao, president of BDMG.
For the Operational Director of the Espirito Santo Development Bank, Maria Emilia Vieira da Silva, this may be the ideal moment for the financial rebalancing of companies. “With the reduction of the interest rate, credit is even more favorable for those looking for financing and companies can, for example, purchase inputs, honor payments from suppliers and, most of all, retain their employees. This is one of the lowest rates on the market,” she explains.
The Doce River Development Fund is an action of the Economy and Innovation area of the Renova Foundation, in partnership with BDMG and Bandes, established in compliance with the Transaction and Conduct Adjustment Term (TTAC).
Access to credit
All special conditions for interested companies can be consulted at the banks.
In Minas Gerais, requests can be made through the BDMG website or in person at corresponding banks listed on the portal. 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 the documentation is all correct, the funds are released within three business days.
In Espirito Santo, companies should contact the bank’s consultants, who are present at the Nossocredito branches in the municipalities mentioned above. The next step is registration. If the provided documentation is correct, the process continues with review and approval. For more information access www.bandes.com.br or call us on: 0800 283 4202.